The economy may be improving, but consumers are still cautious. For many businesses that’s bad news, but for remodeling companies, it’s great. Homeowners are likely to stay where they are and remodel instead of trading up.
Painting services are one of the best options, since painting a home offers the highest ROI when that home is sold of any home improvement project. It’s also one of the cheapest ways to improve quality of life in an existing home.
But painting isn’t the only franchise business opportunity for those looking to benefit from homeowners’ tendency to stay put.
Bathrooms and kitchens are popular remodels because they add the most resale value to existing homes and pay off the most for the homeowner’s investment in a remodel. Out-of-date kitchens and bathrooms can make selling a home harder and also makes living in the home more difficult. As a business opportunity, the kitchen and bathroom remodeling business is strong and growing because of increasing demand.
Re-Bath is one of the most recognized names in the bathroom remodel industry. They’ve been around since 1989 and have earned consumer trust. Re-Bath franchisees enjoy a sound business model and strong demand for bathroom remodels. But a lesser-known part of the Re-Bath enterprise is 5 Day Kitchens, a sister franchise company that focuses on kitchen remodeling and resurfacing. Combined together, these two franchises tap into the two most popular and recommended home remodels. While opening up one franchise might have been your original plans, opening a second sister franchise might be the best way to recoup your investment quickly by drumming up even more business.
For instance, if you open a Re-Bath franchise and work with clients to remodel their bathrooms, you’re tapping into one revenue stream from homeowners. If that customer decides in the future to update their kitchen after enjoying the bathroom update, your business misses out on repeat business because you only specialize in bathrooms and don’t remodel kitchens. This is a loss of potential business opportunities because you decided to specialize in one popular remodel area and not both.
5 Day Kitchens follows much of the same business processes as Re-Bath and opens up more doors for building a remodeling business if you combine the two businesses together. You can treat them as separate businesses that feed each other, working with customers to build longer relationships than a single remodel project. When customers loved their first experience and have new needs you can fill, you have a chance at repeat business from happy customers. Since homeowners don’t remodel the same space often, having two options increases your chances of repeat business.
Deciding when the right time to open a second, related business depends on your level of risk-aversion and your investment abilities. Opening two businesses at the same time requires a larger investment of time and money. You might choose instead to invest the profits from one into a new, second business. Whatever you decide, be sure that each business can stand on its own feet. A complementary sister business can be great for both companies, but not if each eats into the profits of the other.