(This is a guest post from Marsha Kelly of Best4Businesses.com)
Here’s a wonderful opportunity to learn franchise lessons along with the keys to business success from the Inc. 5000 Fastest Growing Companies list.
Below, you can learn lessons from some of the winning franchises, like Club Pilates and Fazio’s Italian Restaurant-and how they made the list.
But first you need to know about the Inc. 5000 Fastest Growing Companies list.
The Inc. 5000
Since 1982, Inc.com has compiled the list of America’s 5000 fastest-growing companies. They are ranked according to revenue growth over a 3-year period.
Winners must be US based, privately held and independent, not a corporation subsidiary, and company revenues must be over $100,000 in their first year and at least $2 million in the most recent year. https://www.inc.com/inc5000
With this in mind, let’s begin.
Everybody loves a success story. Nobody more than those who are franchise owners or who are considering becoming franchisees.
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That’s because business success stories can help you get motivated with new business ideas and to learn lessons from winners about the keys to success.
In any event, I think you’ll get energized reading the business success stories below.
Franchise Lessons From The Inc. 5000 Fastest Growing Companies
What follows are two franchise success stories-from the Inc. 5000 Fastest Growing Companies list.
1. Club Pilates
The Club Pilates company has set a goal of opening 932 new studios in the US by the beginning of 2018. One Club Pilates start-up sells for around $200,000, and the company has already sold 550 locations. Interest in the Costa Mesa, California company may come from a $26.7 million revenue for 2016, an increase of 21,319 percent from its 2013 revenues. In 2015 Anthony Geisler bought the Club Pilates Franchise and exploded the revenyed 21,319% to make the#4 spot on the list. He made savvy marketing moves of rebranding with new logo designs and studio colors to expand the customer base from primarily women to men and even children.
Chino Hills, CA
In 2016, Amy Truong, a certified Pilates instructor and female entrepreneur, made the decision to open her own club. Since she was passionate about Pilates, she looked for an opportunity in that field. Her Chino Hills location immediately became the fastest growing location in the chain.
What made Amy an overnight success? Her research into the company showed:
- Club Pilates values transparency as much as she does,
- The Club Pilates team was very supportive, and
- Her values were well aligned with those of Club Pilates.
Amy did her research, and she found an opportunity in an industry she was not only familiar with but that she was passionate about. Her knowledge and experience together with a like-minded corporate partner made her an instant success.
Pleasanton, San Ramon, Dublin, Claremont, Rancho Cucamonga, CA
When father/daughter Robert and Jessica Shiraki purchased their start-up with Club Pilates, neither one had experience in the health and fitness industry. They were also new to the franchising world.
Time spent researching opportunities with a franchising specialist led them to Club Pilates. After a year in business, they are consistently rated among the top ten Pilates studios in the US.
What were the keys to the Shirakis’ success?
- Pilates was trending well as an industry.
- Club Pilates dominated the Pilates industry across the US.
- The company had experienced no closures.
- They found a supportive support team already in place.
- They believed they could easily follow the system put down for franchisees.
2. Fazoli’s Italian Restaurant
In brief, when Bob Sirkis purchased his start-up in the Fazoli’s Italian Restaurant chain 15 years ago in Dolthan, Alabama, he and his wife Kendall wanted to work together. The start-up cost for one location was $30,000. In addition, they pay marketing and franchisor fees of 5% royalties. The Alabama company took in $1.4 million in 2015, $1.5 million in 2016, and they project an annual growth rate of 7.5%.
The Sirkis consider the following to be the keys to their success as franchisees:
- The Fazoli brand was well established when they purchased their location.
- The parent company helps owners keep costs down by purchasing the food supplies in bulk and passing the savings on to their franchisees.
Become a Franchise Success Story
If you’ve been thinking about opening your own business, joining the US franchise movement may be the most successful way for you to get started. According to CNBC, 3,000 US franchisees contribute over $1 trillion annually to the US economy. Reasons for becoming a franchisee varied but included:
- Low-cost franchises made it affordable to start their own business.
- Work/life balance.
- Pursuit of a passion.
- Frustration with their traditional career path.
Now, let’s say that you’ve decided to pursue franchise ownership. Congratulations! Deciding to move forward is often the hardest part of the process.
With this in mind, your next step is the research step. And this step is going to take time. Don’t skip it! The key to your success will be joining hands with a company that has a proven track record…one that you can prove.
And one way to begin your research is by taking a look at current trends.
Inc Magazine recently published a list of the 5000 fastest growing industries in the US. It is very important to open your franchise where the industry is growing. The infographic below will show you the hottest and most profitable industries and locations in 2017.
Fastest Growing Industries
- Travel/Hospitality – 201%
- Media – 198%
- Energy – 198%
- Security – 171%
- Real Estate – 168%
Fastest Growing States
- #1 – California
- #2 – Texas
- #3 – Florida
- #4 – New York
- #5 – Virginia
Fastest Growing Cities
- #1 – New York City, NY
- #2 – Washington, DC
- #3 – Los Angeles, CA
- #4 – Chicago, IL
- #5 – Atlanta, GA
Highest Total Revenue
- $4.73 Billion – Health Insurance Management
- $3.43 Billion – Human Resources
- $3.43 Billion – Government IT Services Providers
- $3.03 Billion – Used Car Dealers
- $3.96 Billion – Supply Chain Management
In conclusion, now that you know some of today’s business trends, it’s time to start searching around for the right franchise.
Go here to search and research franchises.
And best of luck!
(Marsha Kelly sold her first company for at least a million dollars. She’s shared her own experiences as a successful serial entrepreneur on her website Best 4 Businesses . Marsha also regularly shares business tips, ideas, and hints in addition to product reviews for entrepreneurial readers. She is a serial entrepreneur who has done ‘time’ in corporate America, Marsha has learned what services and products work well in small business now.