The basics: What you need to know before starting an HTPro's Franchise
You’re probably reading this because you’re interested in the idea of owning your own HTPro’s franchise. We’re glad you’re here and we want to say right from the outset: if you’re feeling kind of overwhelmed, we get it!
Back in 2013, we were looking at a similar decision of sticking with our traditional 9-5 gigs or making a move to control our own destiny. Five years later, we can look back at the story of our business and know that it all turned out great, but right back at the beginning, the decision of whether or not to make the change was nerve-wracking! There was a whole lot to consider and yes, many sleepless nights.
Starting your own franchise isn’t just a business. It’s an adventure and it affects your whole family. No wonder so many people hit a point of analysis paralysis in the early stages of looking at a franchise opportunity.
If this is you and you’re trying to decide whether an HTPro’s Franchise can work for you, you’re in the right place! In this article, we’re going to lay out for you in clear, straightforward language the “meat and potatoes” of how an HTPro’s franchise works.
So, grab a coffee, sit back and we’ll give you the scoop.
What are the financial requirements?
The current Home Technology Pros franchise fee is $15,000. For this fee, you get a protected territory of 200,000 population. Additional territory is available at $100 per additional 1000 population. If you’re keen to learn more about franchising fees, the US Small Business Administration is a useful resource.
Personal financial requirements
We require $25,888 in liquid capital and a minimum credit score of 650.
Estimated initial outlay
The initial outlay to get yourself ready to open your doors for business is relatively low in comparison to other franchise opportunities. For an HTPro’s franchise, your initial investment range will be from $29,938 to $68,278 depending on your personal access to professional services and the desired scale of your operation. This range includes costs associated with a cash operating reserve, marketing, insurance, your vehicle, sales business formation fees, materials, branded apparel and so forth.
Whether it’s through family and friends or via a traditional bank, many people interested in starting a franchise opportunity will rely on some level of financing to secure the required capital. The majority of costs can typically be financed although lenders will typically want to see that the investor is capable of sinking around 20% to 30% of startup costs into the business.
What kind of sales performance can I expect?
Before looking at the data, we need to be clear that this data should in no way be considered a promise by Home Technology Pros that you’ll achieve the same results as a franchise owner. Demographic data in your home market can, of course, very substantially from the operating conditions and market in which these results were achieved.
Average sales ticket
Here’s some data on average job sizes, extrapolated from jobs tickets collected between June 8, 2017 and June 8, 2018 in the Sacramento, California area.
- Average Service / Basic Scope of Services Ticket (less than $1000) = $436.37 - Sample Size of 106 Jobs
- Average Small Project Ticket ($1000 to $4999) = $2,411.90
- Sample Size of 61 jobs
- Average Medium Project Ticket ($5000 to $9,999) = $7068.73
- Sample Size of 22 Jobs
- Average Large Project Ticket ($10,000+ ) = $14,964.83
- Sample Size of 15 Jobs
Consumer demand data
This data relates to Sacramento, California. The data was collected between May 2017 and May 2018
- Average Monthly Yelp User Views = 323
- Average Monthly Yelp Ad Clicks = 124
- Average Monthly Yelp Sales Leads = 100
The referenced data in no way should be considered a promise by Home Technology Pros that your franchise will achieve the same or even similar results. Demographic data in your home market/ protected territory can and will likely vary substantially from the Metro Sacramento area, where these results were achieved.
Hopefully, this is a good start and will give you some angles to crunch the numbers. Remember, if you have any questions about financials you can simply pick up the phone and call us. We’ll be happy to answer any questions.
Can I make this happen?
So you have some facts and figures to digest, which is a crucial part of the decision-making process. It’s not the whole picture though. There’s the bigger question of whether you can make the Home Technology Pros business model work. Here are a few things to consider.
Do you have the fire in your belly?
The single biggest factor in making a franchise work is you. Working to build your own business and being your own boss is fantastic, but it takes serious energy and dedication.
Every day you’ll need to get out of bed with the mindset that you’re ready to work. Before you take the leap into owning an HTPro franchise, be completely sure you’re ready to work hard and give it your all.
Knowledge is power
Another important factor in making a franchise work is research.
In addition to researching franchise ownership generally, (we’d point you to entrepreneur.com as a great resource to start with), you’ll need to look at your local market and conduct a comprehensive local market assessment. Here’s a great resource to get you started.
You aren’t setting out on this venture alone
We will support you as you pursue your business goals. Maybe you’re a tech person working hard to build up your business savvy. Perhaps you’re a capable business person who needs to get up to speed on the tech side of things. You might even be feeling the need for support on every front!
It’s all fine. HTPro’s offers an ever-growing collection of resources to guide you through every stage of building your business. From technical advice in how to perform an installation right through to pointers on how to drum up local business, we’ve got you covered.
Sound exciting? Feel ready?