The freedom to do what you want when you want to do it might be the top reason why you are searching for business opportunities. As you scour the internet, you found two good options: franchises for kids and auto detailing.
Which has better growth potential? Which can provide you with more profits? And which can help you start a business soon? Read on and find out.
Franchises for Kids and Auto Detailing: A Comparison
It pays to know the statistics behind the industry you are considering joining. This will provide you with two important pieces of information: the number of people who would most likely need your services and how much revenue the industry is generating.
More than 28% of the entire US population in 2017 was comprised of children aged 18 and below. This number continues to increase year by year. This is the reason why franchises for kids have grown exponentially. Day care in the US, for one, is a $48 billion industry!
Auto detailing franchises, on the other hand, is a $38 billion industry, servicing over 97% of the American population.
These statistics show you that daycare franchises for kids generate more revenue. However, only a limited portion of the population (28%) needs their services. Auto detailing franchises may have lesser revenues but have a wider target demographic.
Projected growth is an essential part of any industry. For how can a franchisor provide you with the best training and equipment if it has limited growth potential? The franchisor will not be able to hire new employees (to train you and your staff; do research; etc.), develop new products and services, or purchase new equipment.
Franchises for kids are growing steadily at 1.5% yearly, due to parents wanting to enhance their children’s capabilities while at the formative age. They enroll their children to various developmental classes, buy educational toys, videos, and so on. Also seen as a reason for the growth of franchises for kids is the increasing number of working mothers. Since nobody would be left at home to care for the children, these moms leave them in daycare centers.
The auto detailing industry, on the other hand, has a projected growth of 3.6% owing to more vehicle owners wanting to extend the life of their prized possession. And, based on our experience as mobile detailing providers, an increasing number of people are becoming aware of the importance of vehicle cleanliness in relation to passenger health and road safety. Clean and sanitized vehicles prevent the growth of germs and bacteria that can cause respiratory infections and other illnesses. Additionally, well-maintained headlights can improve drivers’ vision and visibility to other drivers. Finally, periodic cleaning of the engine can help detect leaks that may cause engine fires.
Franchises for kids like Amazing Athletes has a total startup cost of $25,000 – $55,650. The program introduces the fundamentals of 10 different sports (soccer, hockey, volleyball, basketball, tennis, lacrosse, football, track and field, baseball, and golf) in a non-competitive environment. The franchise fee includes costs of training, policies and procedures, curriculum + updates, web support, professional marketing materials, and on-going support and R&D from corporate.
Auto detailing franchises like DetailXPerts has a total startup cost of $79,000 to $116,000. This covers the initial franchise fee, vehicle detailing unit, business software, initial marketing campaign and promotional materials, initial inventory and third-party costs. It also helps its franchisees in securing loans.
Which industry has a more loyal customer base, you ask?
It all boils down to customer experience. Whether you’re offering child related products or auto detailing services, what matters is how you build relationships with your customers.
Did you know that more than half of Americans have scrapped a planned purchase or transaction because of bad service? U.S. companies have in fact, lost more than $62 billion annually due to poor customer service!
These are just some considerations that would-be entrepreneurs like yourself must carefully weigh before choosing between franchises for kids and auto detailing ones. If you’re interested in the latter, consider the DetailXPerts opportunity. We will help you with your business from day one to launch.
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