Best franchises: where to invest in service industry

When a business owner decides to invest in a new business, many questions come to mind, specially today. After all, the choices require caution so that the company may develop and grow.

The search for franchises is top of mind – the sector grew 10.2% in 2015, according to Brazilian Franchising Association (ABF) – however, although this scheme brings security of pre-formatted and tested models, there are still fear regarding investment. For these cases there is a type of franchise that is trendy and still ensure the long-awaited stability: service franchises.

Service franchises: Why they attract investors

The advantages of this type of business are well known among Brazilian businessmen. For those who believe that food industry is the only “king” of franchises, you may be wrong.

The interest for service franchises is easily explained: you require less money as initial investment – these are low-budget franchises. However, despite the apparent ease to start the business, service sector depends more of the technical skills of the franchisee and its employees.

In a fashion franchise, for instance, the franchisee receives the product to be sold from the franchiser and should operate on the footsteps of other franchisees in the same business. For services franchises, however, the human factor counts, and it requires expertise to maintain services quality. 

Expanding models – Successful franchises to invest in the services area

Some areas knew how to take advantage of certain situations created by the economic moment. Here are some examples:

Education: With a crowded job market, professional attributes are increasingly called on, that is, who has the best qualification comes out ahead. Having said that, vocational education and language schools are the most sought after markets.

Aesthetics and health: Brazilian people cares a lot about its looks and very concerned about its health, what makes them spend a lot of money on that. Dental networks and Facial hair aesthetics / Waxing services are some services that are not to be sneezed at.

Dry cleaners: Due to changes in the family’s life styles nowadays, both parents usually work out. So in order to outsource domestic services, like washing clothes, it is a trend that is becoming more evident each day in Brazil. 

Repair shops: Car tune-ups are always needed and tend to be an expense provision in the family budget. There are more than 85 million vehicles on Brazilian roads today (IBGE), which creates a favorable market for this segment. Besides, there is not risk of seasonality in this market. 

Brazilian roads today (IBGE), which creates a favorable market for this segment. Besides, there is not risk of seasonality in this market.

Even with the examples above, the most important is that franchisee applicant reviews its market and all the possibilities it can offer – after all, there are differences among regional markets that may be very relevant and should be taken into account before starting a new venture. With confidence, the right investment and good business management, you will be successful! 

Source:

cidades.ibge.gov.br

g1.globo.com