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The Importance of Investing in a Winning Franchise | The Glass Guru Enterprises, Inc.

The Importance of Investing in a Winning Franchise

Many entrepreneurs express a degree of uncertainty when they are looking to invest in new business opportunities and the economic conditions begin to change. Many will ask “Is now still a good time to invest in a new business or buy a franchise?” The answer is “It depends.” With any degree of economic uncertainty, an imperative surfaces. Investing in a franchise with a proven record of economic resilience should be a priority. Additionally, you want to ensure that whatever brand you choose to partner with, they need to offer the needed support.  The current economic conditions have been a topic of discussion in recent months. There are concerns about inflation across all consumer goods and services as well as supply-chain issues and a possible recession. The good news is that there are still great opportunities out there for entrepreneurs to partner with franchise brands that have weathered the storm before and who have clear revenue opportunities. Read on for some important considerations for those seeking a franchise in the current economic climate. 

Understand Economic Impact on Different Industries

One piece of research potential franchise owners should be conducting is the impact of the current economic challenges seen by businesses in the industry they are considering. How will these conditions affect the business today and in the future? The glass, door, and window sector(s) have not been without issues. One of the primary drivers of the inflationary tendencies we’ve seen of late has been a staggering increase in energy costs. Additionally, many manufacturers are just now rectifying supply-chain issues that were caused by pandemic-induced labor shortages.   While the supply chain issues have returned to some degree of normalcy, the glass industry at large has seen large increases in material costs in recent months. This is primarily due to energy costs, as “float glass” production requires a large quantity of natural gas, and glass delivery costs have risen with the price of diesel fuel. The good news for brands like The Glass Guru is that these price increases affect all providers in the industry, without really affecting the consumer demand for glass products, and in particular, glass replacement. The Glass Guru organization has a huge focus on “pricing for profit”. This ensures franchise owners are adept at regularly reviewing their material costs and labor costs, and then adjusting their retail price accordingly. Communications with customers about pricing are also regular and overtly transparent. Investing in a franchise that is both transparent and willing to help you do what you can to keep your financial independence can make or break a partnership. 

Understand the Franchise Brand’s History

It’s important that you incest with a franchise that has seen tough times before. The Glass Guru has proven to be a very resilient company over the years. The organization began franchising in 2007 and had to weather the Great Recession of 2008 during the brand’s early years. The brand responded by posting year-over-year gains every year since its inception. During the pandemic, the company had a record year. That growth continues today.  If that’s not enough validation, note that The Glass Guru has also been regularly named a recession-proof franchise by leading business publications. Being a part of an acknowledged recession-proof brand can leave you feeling confident that you’ve made a solid and safe investment. 

Seek Out Franchise Opportunities with Low Start-Up Costs

Putting in a ton of money upfront is not always necessary for big profits to come to your business. Especially now, pouring in a lot of money upfront isn’t in everyone’s cards.  Finding a franchise that works in your start-up budget is vital. The Glass Guru has consistently been named a low-cost franchise Financial decisions at this stage need to be logical and smart. In challenging economic times, it often pays to seek out franchise opportunities that are classified as “low-cost”. Typically, this means a franchisee can start up the business for less than $100K. Even when entrepreneurs clearly have the capital to spend more on start-up costs, the savvy ones know to look for lower-cost alternatives. Investing in a franchise opportunity that has a lower start-up cost does not have to mean a lower return on investment. It just means to need to look specifically for proven low-cost alternatives. 

What is the Brand’s Current Financial Performance?

When researching a franchise to partner with, take a look at recent performance of the past 6-16 months. How well are they adapting to the current economic climate? At The Glass Guru, we’ve been fortunate to see consistent growth since inception, including significant growth from 2019 to 2021. The brand had 15 locations hit record milestones in June 2022. In April 2022, three of the six locations that hit record milestones for that period had only been open for business for a combined average total of five months. The continued growth and success of the individual franchise locations in any climate is a great validation of any brand. 

What is the Market Outlook and Growth Opportunity?

With markets being unstable, breaking into a niche market like the glass industry can be a more stable option. While you may be focused on your business booming, you likely can’t “boom” if the industry you are in is on the downswing. Overall the Glass, Window, and Door markets are forecasting continued growth. The global flat glass market is forecast to grow at a modest rate of 4.5% through 2032. Windows and Doors are also forecast to grow at an annual rate of 4.9% through 2030. In addition to the traditional replacement services offered by The Glass Guru, often residential remodeling projects require a number of services offered by the company. While residential real estate still sees significant inventory shortages, and interest rates are on the rise, many homeowners will instead choose to remodel their existing homes. A recent article in Remodeling Magazine indicates that we could be entering the “golden era” of remodeling, with a promising outlook for mid-range remodels.  With the business model straddling both the home repair and remodeling markets, The Glass Guru continues to be well situated for the times to come…

Seek Out Brands with Great Franchisee Satisfaction 

Seek our franchise brands that have a high degree of franchise owner satisfaction. Ensure that the brand’s claims about franchisee satisfaction have been validated by a credible, 3rd-party source. Being marked year after year as a top franchise for satisfaction by Franchise Business Review is an honor The Glass Guru does not take lightly. Finding a brand where current franchisees indicate they are satisfied with their investment in the franchise, the business model, the support received, along with a good work-life balance should be at the top of your list. 

Find a Franchise That Works for You

At the end of the day, do you just want to wear a logo, or do you want to be a passionate advocate for a brand you love being a part of? Will the franchise brand you select be capable of weathering the current economic challenges we’re seeing today and down the road? Will you get the support you need to navigate the challenges of business ownership, along with a degree of confidence that you come out the other side feeling fulfilled and profitable? Your likelihood of finding success partnering with a franchise brand increases dramatically when you do your research, covering all the bases that we’ve outlined here in this article.  At The Glass Guru we believe that “franchise owners should be in business for themselves, but not by themselves.” If you really dig in and look at the opportunity, following The Guru Way could be an option that makes sense for you. Breaking into a proven and consistent business with traditional and niche offerings could be your big break. With unique services, a proven track record and a scalable model, franchising with The Glass Guru could be the answer you’ve been looking for.