Business Services Franchise Industry
These types of businesses focus on service other businesses grow in particular through their business operations. This can be through accounting, tax planning, marketing, office supplies, and more. These businesses focus on business-to-business, commonly known as B2B. They do not provide products or services that are direct to consumer, like businesses in the retail industry.
In 2019, the business services industry had a total revenue of $10 billion, and has had an annual 1% growth since 2014. With 27.9 million small businesses in the U.S., almost every business no matter the size will need at least one business service company to support in their efforts.
Outsourcing other services to professionals will allow the business itself to focus on its main services. Franchises in the business services space must show other companies they will provide more value relative to these companies having staff in-house.
These franchises are a popular option because they are a low investment amount and secure.If you had past experience in the corporate world, but want to run your own business, you may find familiarity in running a franchise in the business services industry space.
Furthermore, new companies can enter into the business services market as there is no dominant competitor within this industry.
Business Services Franchising Trends
There has been growth in the personal staffing industry, as technology advances business can create systems and programs for telephone operators and guest services outside of the physical office.
As small businesses continue to grow, so will the demand for business services. More businesses also prefer to outsource business services because it is more cost effective than hiring full-time staff.
How much can a Business Services franchise cost?
At Visa Franchise, we have reviewed over 1,600 businesses and franchises. Of the concepts in the business services space we have reviewed, total investment amounts can start as low as $925 all the way up to $26,690,000. Out of all Visa Franchise’s, specific industries, the business services industry has the smallest range and the lowest maximum investment amount. In our research, the average royalty fee takes up to 10.4% of gross revenue, and the average marketing fee is 2.2% of the gross revenue. Many business services industries have a higher royalty fee relative to other industries but they make up for it with less or even no marketing fee. In the SBA analysis for the 7(a) loans from 1991 to 2019 adjusted with loan disbursed, franchises in business services had a paid in full rate of 61.4% and a charged off rate of 12.1%