If you’re a franchise owner who’s looking to build a portfolio of investments, it can be challenging to determine which businesses are the best fit. You might want to branch out from your first franchise system, but you also don’t want your businesses to compete with one another.
SpeedPro, the nation’s leading wide-format printing franchise, is a great choice for franchisees interested in adding a new business to their portfolio. Large-format printing makes a great complement to almost any business, and our system is built in a way that keeps overhead low and profit margins high. Here’s why you should consider adding SpeedPro to your franchise portfolio.
Reduce risk with low overhead
Finances are the biggest factor to consider when choosing to expand your franchise portfolio with a new business. But beyond the initial franchise investment cost, you need to think about how much the franchise will cost to operate over time. Investing in a high-overhead business while you already own several others could put you in a tight spot financially. You want to make sure you have the cash flow and reserves needed to keep all businesses stable.
Selecting a low-overhead business like SpeedPro will allow you to minimize your upfront investment as well as ongoing costs. SpeedPro’s model is lean, requiring a small team of employees, and a modest Studio space. Better yet, SpeedPro boasts industry-leading profit margins of around 68 percent (per our 2022 FDD). We leverage strong buying power within our network of equipment and materials vendors, keeping our cost of doing business low and our returns high.
Assemble non-competing businesses
The type of business you add to your franchise portfolio can make a big difference. A diversified portfolio holds less overall risk for the franchisee. Even if downturns affect one industry, businesses in other sectors can keep your portfolio afloat.
The key to building a diversified franchise portfolio is assembling businesses that aren’t competitors. Instead, you want to find brands that complement one another.
In SpeedPro’s case, large-format printing sits in a small niche of businesses. We’re not a competitor to customer-facing printers, nor are we competing with B2B small-format printers. If you own franchises in the marketing, advertising, or other B2B services spaces, SpeedPro would be a great complement.
Create a built-in print provider
SpeedPro isn’t only complementary to B2B service brands, though. Given the nature of our products, SpeedPro can be useful within a portfolio of franchises from almost any industry. This is because of the products we offer.
SpeedPro’s large-format print products provide benefits to any business in need of branding or marketing materials. The cost of these products add up when they’re coming from external providers. If you own a SpeedPro Studio, though, your other businesses have a built-in, reliable vendor for large-format print graphics! You can harness the ROI from SpeedPro’s vehicle wraps, window graphics, signage and more to bolster sales performance across your entire portfolio.
Scale as you need
One last element that makes SpeedPro a worthy addition to any franchise portfolio is the ability to scale your operation within a single Studio. Franchise owners often hit a “cap” at which their franchise location isn’t able to sustain more business. At that point, they have to open a new location in order to continue growing—and that requires a lot of hands-on work upfront.
SpeedPro doesn’t operate this way. Our model is designed to scale when and as much as an owner wants by adding more equipment, team members, and sales outreach. If your sights are set high, national sales are possible from your initial location. This allows an owner to skip the repeated “launch” period involved with multi-unit franchise investment and simply build off the strong foundation you set in the beginning.
Large-format printing is a growing industry with diverse verticals and tremendous potential. If you’re interested in adding a new business to your franchise portfolio, reach out to SpeedPro to learn more today.