Ever thought of joining a tool franchise? By investing in an established brand, you can sell essential equipment and materials to construction professionals and homeowners under a proven business model. There are plenty of advantages of running a tool store…
The UK home improvement market seems to be divided into two groups of people: those who do the job themselves, and those who get others to do it for them. Many Brits love a bit of DIY, spending weekends and bank holidays improving their homes, but the ‘do it for me’ group is growing in size. Increasingly, people are money-rich but time-poor, and would rather pay for a professional to do a task than attempt it themselves.
The rise in demand for skilled professionals is great news for tool businesses, which mainly sell to contractors and companies. But this is just one of the reasons you should consider starting a tool franchise business.
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- What qualifications do you need to run a home repair business?
- Top 5 home improvement franchises
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- Top 8 Construction Businesses in the UK
- Day in the Life: What It Takes to Run a Successful Construction Business
Advantages of running a tool store franchise business
1. Demand is high
As we’ve just mentioned, many people opt to hire a professional rather than undertake jobs themselves. Plus, more and more homeowners are choosing to upgrade their properties rather than go through the hassle and expense of moving house, which is driving up demand even further.
2. There are low-cost investment opportunities
Depending on the type of business you choose to launch, you may be able to get away with a small budget. Many tool franchises are mobile operations, with a fleet of vans selling their products at workplaces across the local area.
By starting a van-based business, you can avoid paying expensive rental costs and all the fees associated with property ownership, such as utilities, tax and insurance. Taking this step will help you reach your break-even point and start turning a profit much sooner than you otherwise would.
3. You can scale up when you’re ready
Franchisors running van-based franchises are often happy for their investors to start out as a one-man-band, completing jobs themselves. As time goes on, franchisees usually have the opportunity to grow their business, hiring employees to go out on the road while they take on a managerial role.
4. You can sell online
Tool franchises work in the retail sector, so they have the chance to operate online by launching an e-commerce store. Using the internet to gain a second income stream is a wise choice, especially as more and more individuals and businesses are choosing to buy online. You’ll be able to save people valuable time and get one step ahead of competitors.
5. You can use data to boost revenue
These days, there’s a huge volume of data freely available on the internet. Industry analysts are continually discovering all kinds of new information about consumer behaviour. Business owners can use this insight to their advantage, adapting their strategies to reflect customer demand.
In the tool retail sector, for example, nails, screws and adhesives are the most popular DIY materials (Statista), so putting extra emphasis on the sale of these products makes sense.
6. There’s the opportunity for repeat business
Many construction and home improvement firms will need to buy tools and equipment on a regular basis, so franchise businesses can establish ongoing contracts for repeat purchases. Being able to secure long-term agreements is incredibly useful, as it’ll enable you to plan your finances and rely on a stable income for the months ahead.
Plus, you’ll have the chance to develop a relationship with your repeat clients and reduce the risk of them going elsewhere for their tool needs.
7. You’ll enjoy all the benefits of being part of a franchise
As well as operating in the tool sector, you’ll also belong to the franchise industry - and there are plenty of perks to being a member. You’ll work under an established company with tried and tested strategies, avoiding the mistakes you might make as an independent business owner.
You’ll also benefit from customer awareness, as people in your local area will probably recognise and trust the brand before you open your doors.
8. You can help others
As a tool store business, you’ll play a key role in helping people create their dream properties, whether they’re for use as homes, offices or commercial premises. A renovation project or even just a simple fix can have a huge impact on a person’s happiness and quality of life, and you’ll get to be a part of the process.
This rewarding aspect of the business usually leads to high levels of job satisfaction and personal motivation.
The current state of the tool sector
The tool sector is worth billions in the UK. In fact, we spent a combined total of £7.18 billion on equipment for the house and garden alone last year.
What’s more, the sector has been in high demand in 2020, as a high proportion of people decided to complete renovation work during the Covid-19 pandemic. Many types of building supplies went out of stock, as contractors rushed to complete jobs. As early as the end of March, online sales of construction materials, paints and plants had soared to record levels, resulting in a year-on-year increase of 48 percent (Statista).
The future of the construction tools sector is also expected to be exciting. Smart machinery and AI is set to cause huge shifts in the way businesses operate, making repetitive tasks easier and quicker. Drones can take birds-eye-view photos of construction sites and deliver building materials, while 3D printing and VR tools will also introduce new ways of working.
Start a tool franchise business with one of our fantastic opportunities
If running your own business in the tool manufacturing and retail sectors is a dream for you, why not consider joining one of our profitable franchises? View our selection of tool businesses looking for new investors to get started. You can sort the list by investment price and popularity to find the ideal franchise for you.
Alternatively, browse our recent publications to learn more about the wonderful world of franchising.
Alice Tuffery, Point Franchise ©