Franchise A/C business

[mfakazi]

I was just wondering if anyone is involve in this sort of business.I'm considering buying a franchise to get started on my own but I need a lot marketing and management support.Im am bit worried about going on my own and throw away all my savings I have worked hard for especially considering the current economic crises.I'm not worried about getting jobs done to a very high standard.But im not a sales person.So thats when I think I really need help about setting up a proper business ideas,contracts,etc
I don't think its a bad time to start a business hence mr brown is planning big tax cuts huh huh.

please let know whats you guys think,ill really appreciate your openions and expertise.

Thank you

[Abe]

Tread very carefully

I note you say you do not have sales/ marketing experience.

You will also need to have your legal paperwork looked at and advised upon

You need to consider your own situation, family, children, assets?

Market conditions, remember we are heading for a recession.

You need a lot of preparation and advice before you take any further steps.

[mfakazi]

thanks Abe

Thank you for the reply ,yeah recession is around the corner. Thats also my main concern but on other hand if can manage to run a business under the current situation I feel ill be able have a lot of discipline..

thank you

[Andy]

thanks Abe

Thank you for the reply ,yeah recession is around the corner. Thats also my main concern but on other hand if can manage to run a business under the current situation I feel ill be able have a lot of discipline..

thank you

Hello mfakazi
If you can wait for better times, you will have more money to cover the mistakes that we all make.

My wife set up a business last year and we did learn the hard way. The business is making a profit at the moment, but if we were starting now it would not be, we have all the big mistakes over us and just have to ride it out for better time.

I would not advise starting up at the moment.

Kind Regards Andy

[R1976]

Ey up,

You'd be a brave man to start a business right now, everyone I speak to is having hard times and laying staff off. It's very scary dealing with builders/ companies at the moment, you wait 30-90 days for payment and fear they will go bust in that time, It happened to us this year:mad:. You can be left with bills for materials and staff wages paid and no money coming in, but hey, business is a gamble. If you keep small and manage your customers well then you may be okay.



I'm not worried about getting jobs done to a very high standard


This might not get you continious work though.;)

All the best

[beagle]

Definately not a good time to start up and franchises are hugely overrated, especially if it's the one probably everyone immediately thinks of. Get a customer base first if you can or at least some good contacts you can rely on, bagging a decent maintenence contract is the best way to get a start though. It's appealing setting up on your own, now is probably the worst time to take the plunge though.

[sparkatan]

Do not even think about a franchise!

Ask any ex-franchisee what they think.

[paul_h]

Is there anyone even selling franchises?
I saw this topic a while ago, and very good advice was given so I didn't say anything as I know nothing about franchises even being an option.
As far as marketing and getting work, speak to every real estate company, a lot of them have heaps of tenants, but don't bother with contracts, so heaps of work can be picked up there.
Get stickers made up and shove them on every a/c you service.
Get fridge magnets made up, and every job you do get, door knock that street/closest neighbours and hand out magnets. Cheaper than mass mailing, you choose the area, maybe only door knock the houses where you can see a/cs. If you don't feel like a salesman, you could just leave it in the letterbox.

Get a good website up, get it designed properly and optimized, (I will eventually :) ). As well as that sign up for as many free ads that you can. (you know all those directories that are taking over google results these days). Once you have online presence, people looking for contracts will find you and ask you for contracts/quotes. They always email around for the cheapest price, and emails cost them nothing.

Get a clean, good condition service vehicle. Cover it with attractive signage and park it near busy places even when you are not on a job. Thats free advertising for you that other companies spend millions on when they do billboard or mobile ads.

You don't need a franchise, just basic marketing and advertising will give you the same advantages as a franchise.

Be aware of all the other issues though, the recession, other legal and insurance issues, making a business plan etc.

[Grizzly]

Is there anyone even selling franchises?
I saw this topic a while ago, and very good advice was given so I didn't say anything as I know nothing about franchises even being an option.
As far as marketing and getting work, speak to every real estate company, a lot of them have heaps of tenants, but don't bother with contracts, so heaps of work can be picked up there.
Get stickers made up and shove them on every a/c you service.
Get fridge magnets made up, and every job you do get, door knock that street/closest neighbours and hand out magnets. Cheaper than mass mailing, you choose the area, maybe only door knock the houses where you can see a/cs. If you don't feel like a salesman, you could just leave it in the letterbox.

Get a good website up, get it designed properly and optimized, (I will eventually :) ). As well as that sign up for as many free ads that you can. (you know all those directories that are taking over google results these days). Once you have online presence, people looking for contracts will find you and ask you for contracts/quotes. They always email around for the cheapest price, and emails cost them nothing.

Get a clean, good condition service vehicle. Cover it with attractive signage and park it near busy places even when you are not on a job. Thats free advertising for you that other companies spend millions on when they do billboard or mobile ads.

You don't need a franchise, just basic marketing and advertising will give you the same advantages as a franchise.

Be aware of all the other issues though, the recession, other legal and insurance issues, making a business plan etc.

absolutely brilliant advise Paul.

Personnaly I have had 2 buisness and got took out in the 79 and 91. (Both major recessions.)
As a consequence I would say that when a market is stable marketing is king!
In a recession Cash Flow is King!
You can have all the work you want but if no -one
is paying you !!!! you are buggered. Credit to all the guys as they all have good comments.
Interesting that not 1 has said go for it!
Stay as an employee at the moment go with the flow, build those relationships with your potential customers etc.etc.
But a recession is never the time to spred your wings!
Grizzly

[paul_h]

Yeah, I didn't follow any of that :D
I blew heaps on weekly print and local directory ads and started asking for help.
It got very quiet for me a few months ago because of a really cool climate here, and that's the advice marketing pros gave me.
Live and learn, but to help any others I thought I'd post it here. At the moment due to luck/perserverence/current high temps etc , I don't need any other advertising as I lived through my first year on my savings and I'm now seeing decent income. But I'm preparing for lean times ahead and I'm going to follow through with my own advice soon ;)

The real estate agent angle fell in my lap, and they give me heaps of work (four different agents all exclusive to me so far), but they are slow to pay (but they have never taken more than a month).
On that note, I've only done one job worth more than 3k, and that was in november and they still haven't paid. (edit: that wasn't for a r/e agent, they have paid me for plenty on 2k+ jobs. The one that hasn't paid me was a cold calling business that paid for a few small jobs, so I trusted them to pay for the big job)
But all the small jobs I've done for private homes in the last two weeks have paid me 3k cash in my pocket after costs.

So an addendum if I may, small jobs are the most important when starting out. Even today doing two jobs, working total 2.5 hrs (inc travel time), installing a split and changing a water pump on an evaporative cooler put au$400 (~170 pounds?) in my pocket after any material costs.

[mfakazi]

Thank you very much to everyone,I'm definatelty not going to start anything at the moment..Paul your advice was spot on,franchise does seem like a waste of time....for those who want to know the name of this partcular franchise its called Air Serv....

again thank you....

[Karl Hofmann]

I know a guy who shelled out a hill of cash for a franchise to install a saudi made air conditioner (Cant remember the name but some of you may)

The poor guy lost the lot and never got a single job from them.... If you have the cash to pay a franchise, then you can afford to use that cash to open your own business... But not for the next year or so... Keep your head down and dodge the bullets

[sparkatan]

Thank you very much to everyone,I'm definatelty not going to start anything at the moment..Paul your advice was spot on,franchise does seem like a waste of time....for those who want to know the name of this partcular franchise its called Air Serv....

again thank you....

'Bargepole' and 'do not touch with a ' are a couple of things that spring to mind about said franchise.

I know, to my own cost