Best Franchises in 2024 to Get Into According to TikTok
This video reacts to the best franchises people should buy or start in 2024. Matt debunks some of the points made and gives better business advice for a successful franchise.
There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
Video Transcript:
Business Advice Video:
Avoid anything with brick and mortar. Like things like restaurants and retail. The build-outs too expensive. The interest rates on the loans are really high and hard to come by, they just don’t make financial sense this year. Service brands are much less expensive and easier to go. In the service segment, I like things with lean labor models, high ticket margins. A lean labor model is a truck-based model with just one or two employees so you don’t have a big payroll, you’re not constantly trying to hire people. I really like restoration businesses. I like things like pressure washing. Just the traditional kind of services that people need even in an upper or down market. Any of those types of businesses are really good for this. So look in those segments. And look for something that’s even-handed throughout the year that’s not really seasonal. And look for something that already has competitors in your market. Don’t make the mistake of thinking, if there’s competition I shouldn’t do this.
Matt’s Review:
Okay, so, he said there’s three businesses to buy and I only heard him talk about two. Trucking and restoration business. And he started out by saying don’t buy businesses that require real estate and buildouts. I wouldn’t go as broad as he’s going. There are definitely restaurant franchises that can do very well. You have to pick the right one, be in the right place. But if I was to be able to say get a hold of a Chick-fil-A in the right area, I think that could do very well, even with an expensive buildout. On the other hand, you know, a service business that you don’t have any experience with and isn’t in the right market and doesn’t have great margins or whatever or isn’t a particularly good franchise brand, you can really struggle with. And I’ve I’ve seen both as actual accounting clients. I’ve seen both of those things. So I don’t think you can blanket say service businesses or low-employee businesses are good, you have to look deeper than that.
And obviously, it’s a short TikTok or short video, so you know this isn’t meant to be in-depth advice, I guess. But consider the source and think about what you’re hearing before you decide what to get into or not get into based on these short videos. I think trucking has pros and cons, but even though you’re not spending a lot of labor, you’re spending a lot to buy the truck, even if it’s on payments. And high interest rates still apply to that. So I’m not sure exactly how that fits his model. And then pressure washing is okay but he mentioned having high ticket services and pressure washing isn’t a high ticket service. So in general, I think the premise of what he said is that as far as the title he did not really deliver on in his talk. My advice would be, find a franchise system that you think you can do really well with because of your skills and abilities. And ignore what’s popular or trendy or what’s on a TikTok list of businesses to start.
