Home Inspection Franchises are a low investment, home based business, but is it worth paying for a franchise in this industry? And how much can you earn?
There are a few industries that we get push back from people because in their mind if you aren’t getting a big brand name like McD’s there is no value in the franchise model. We get that with painting, we get it with cleaning, we get it with property management and with home inspections.
But in these businesses you arent necessarily buying the branding, you are buying access to systems and processes that if they are good, will make you more effective and efficient which equals more money. Things like as client acquisition, business operations, quality standards, efficiencies and dozens of other little things that can help you actually make more money in the long run even after paying royalties. With a good franchise there is also a support structure in place if you have questions, or get stuck you can call someone and ask. And while you may know how to paint and clean,or inspect a house do you know how to scale a business? Grow a business? Most people do not and thats why we see many independent inspectors actually converting to a franchise model.
So how does home inspection work. You, or your employee receives training on how to inspect a house, get certified by one of the governing bodies, then you help people, usually home buyers, look for potential issues when they are buying a house. Typically will look at the roof, electrical, plumbing, basement and foundation, walls and windows, and you can add extra services like mold and radon testing for a fee.
The average home inspection not including extras is currently about $315. Many will charge more for value added services and being the cheapest isn’t always the best strategic market positioning, that’s mistake many novice business owners make. But even $315 is not bad for a couple of hours of work. You might ask how many inspections could you actually do in a day? I headed over to the Int’l Association of Certified Home Inspectors forum, and the consensus was you could theoretically do up to 5 inspections a day if you worked ridiculously hard, no one recommended it because you would have no life, and is virtually impossible to keep that up, and your quality is certain to suffer, but 5 inspections a day X $315 X 260 working days a year would be $409,500 dollars with one person, not even considering hiring other inspectors and scaling your business. Because this is a work from home gig your expenses and operational costs are very low so a decent amount of that gross revenue goes into your pocket. Now even if you took it easy and did only 2 inspections a day you are still grossing over $150k a year ($163,800)
Before we look more closely at the franchise model let’s look at that forum comment again “I did 5 inspections once this year. It is too many. I regularly do 4 and that is hard as well. Performing the inspection isn’t the issue, it is **producing the reports as you quickly fall behind volume.
So here is a key distinction, if you have technology that can speed up the reports, you can do more inspections in a day. And that is the reason people buy a home inspection franchise, because among other things they have systems and processes and technologies that help you be more efficient.
When people come to us to help them find the best home inspection franchise, or any franchise we have consultants that walk you through the process looking at many factors to find the best for your specific situation. We’ll cover a few of those today.
So the first as we just mentioned is the technology. There are companies that have the ability to complete up to 80% of the report right onsite, while you are doing the inspection, enabling the inspector to do more inspections per day. There are a few other technology considerations we won’t go into here but you want to drill down on the inspection technology they have, and how much benefit it brings. Does it justify the royalties you will pay.
Next up is customer acquisition. Some franchise buyers gravitate to home inspection because they like that solo operation, lone wolf in the field, and they might be a bit introverted and not be very socially outgoing. Which is fine —if the company is doing lead generation for you. Some franchises rely very heavily on local networking, so you will need to be hanging out at Realtor offices, buying donuts, regularly shmoozing to get business. If you are a people person that’s fine, but always make sure the client acquisition model matches your personality and operational preferences.
For the right person a home inspection franchise can be a good fit especially. If you need help identifying and comparing home inspection franchises, our service is 100% free click below to learn more.
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