Quite often, the secret to finding a fantastic
recession-proof niche is to focus on the "dirty jobs" that people
usually don't even consider when researching business ideas. Such
service businesses are especially strong if a person is highly unlikely
to do the job for themselves even when times are tough. Often these
industry segments are marked by high margins, strong and consistent
demand and minimal competitiona sure recipe for success in any business
climate.
Best of all, many of these
businesses are what we call "executive franchises."Even though they may
go to market with dirty or disgusting jobs, it's not the franchise
owner that will be providing the service. The franchisee hires people to
do the actual work and typically focuses on the marketing side of the
business instead of jumping in the trenches.
So
what are some examples of these types of businesses? Let's have some
fun looking at five great examples of these "dirty job" businesses:
Restoration services: This
type of business is a perennial favorite because of two distinct
characteristics. First, the types of problems it addresses don't care a
hoot whether there is a recession or not. Fires burn causing smoke
damage, pipes burst flooding the basement and sewers back up into houses
in any kind of economic cycle. These events provide a steady stream of
work for restoration companies, year after year. Second, the cost of the
restoration work is almost always paid for by insurance companies. It
doesn't matter if a homeowner has lost a job as long as they maintain
their insurance, because it is the company that authorizes the work to
be done and pays the bill. It may not be pretty to follow up on these
sorts of disasters, but it can be lucrative.
Cleaning
duct work: A typical house or commercial building has loads of
duct work, sheet metal and pipes running through the walls and
ceilings. Whether their purpose is to move air for heating and cooling,
to vent dryers and other appliances or to facilitate wiring, these ducts
are magnets for dust, dirt and even dead critters. They need to be
cleaned on a semi-regular basis to manage air quality and fight
pollutants and allergens that accumulate in the systems. Though the
equipment to do this job correctly isn't terribly expensive, it is far
more of an investment than a homeowner or landlord is likely to make.
Best of all, it is fairly easy to build a recurring stream of income in
this business by contracting for a regular periodic maintenance service
after an initial deep cleaning. It may seem crass to say but there is a
lot of money to be found among the dirt in those ducts.
Cleaning grease: Commercial
grease is a fabulous foundation for a business, because absolutely no
one likes grease or wants anything to do with cleaning it up. This means
that anyone in the business of cleaning grease, whether in traps and
grills or ventilation hoods and pipes, is going to find lots of ready
customers and very little organized competition. The ability to set up
almost an annuity stream of repeat business in this segment is also
fantastic because businesses like restaurants have inspectors that come
through regularly. They can't afford not to have their grease cleaned up
on a very regular basis and they sure as heck don't want to do it
themselves.
Cleaning public
restrooms: Another fantastic example is a business set up to
clean public restrooms. The typical bar or restaurant has dozens of
employees from cooks to waiters to greeters to bartenders to
managers--and not one of them wants to have anything to do with cleaning
the restrooms. In spite of this, it is a job that must be done on a
very regular basis--typically at least once per day. In addition to
cleaning the restrooms, businesses in this field offer a number of
highly profitable supplemental services such as providing deodorization
devices and maintaining inventories of necessary supplies. This is one
of those services where you can get customers for life if you do a good
job because the decision makers that own or manage a business would like
nothing better than to never have to think about their toilets again.
Commercial janitorial services:
This can be another fabulous opportunity. All commercial office
buildings need to be cleaned on a regular basis, and the landlord
usually contracts out this service for the entire building and includes
the expense in the maintenance costs of each lease. Industry statistics
show that the overwhelming majority of janitorial companies are local
mom-and-pop operators, noted for a lack of dependability over time, and
industry estimates are that as many as 30 percentof all contracts turn
over each year. This opportunity can mean a very low-investment business
for franchisees, who usually do the cleaning themselves with some
helpers. It can also be a fantastic executive opportunity for a master
license franchisee who contracts to develop an entire city or state. The
cleaning is typically superficial (empty wastebaskets and vacuum),
making it fast and easy to accomplish, and the money for providing this
service can be very attractive.
These
are just a few examples of "dirty jobs" that can be a sweet success for
an executive franchisee who wants to find a safe and solid opportunity
in the tough times we're all experiencing. The best way to sort through
these types of opportunities and find the best ones out of the lot may
be to use a consultant to steer you in the right direction. These
seasoned professionals are actively working in the franchise market
every day and usually have a good idea of which industries and companies
are faring the best. They can't do your due diligence or make decisions
for you, but their services are free and they can often save you quite a
bit of time narrowing down your search.
Regardless
of how you pick the companies you want to look into, it is still
essential that you do thorough research. In these tough times, that
includes calling a significant number of existing franchisees to verify
your impressions prior to making a final decision on any franchise
opportunity. Take the time you need to make sure you find a franchise
that thrives during tough times and you'll be one of the few people who
are happy about the economy during the next few years of recovery.
Jeff
Elgin is the "Buying a Franchise" coach at Entrepreneur.com
and has 25 years of experience in franchising, both as a franchisee and a
senior franchise company executive. He's currently the CEO ofFranChoice
Inc., a company that provides free consulting to consumers looking
for a franchise that best matches their needs.