Aside from fast food, leading the growth in franchising is Personal Services.
This is a broad franchise category, and I’m shining the spotlight on the BEAUTY component. What makes someone able to CREATE WEALTH here is strong BUSINESS SKILLS.
The business owners HIRE THE TALENT who deliver the beauty services. Owners work “ON” the business, NOT “IN” IT.
Here is a blueprint for many beauty franchises from an INVESTOR PERSPECTIVE.
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Owner’s role: manage managers, limited time commitment
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Strong business skills: ability to execute a business plan; build, motivate, and lead a team; manage the business by the numbers
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Customers – repeat and loyal who pay in cash on the spot
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Economic cycle impact: expect minimal, a.k.a. the “LIPSTICK” EFFECT.” When budgets tighten, affordable luxuries like cosmetics, haircuts, and manicures are still purchased. Bigger ticket items like travel and eating out are what get cut.
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Minimum financial qualifications: $100K liquid capital with a $350K Net Worth
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PEOPLE WANT TO LOOK GOOD AND ARE WILLING TO PAY FOR IT!
Expect to be surprised about the financial strength of beauty. Learn more from this Franchise Alert.
Follow our LinkedIn company page! We announce the weekly Franchise Minute topic there, and you can register for it. Psst!!! – The Economic Forecast for Franchising in 2023 is May 3rd.
