0151 734 4300

gill@thechristmasdecorators.com

 

Introduction    What makes us so unique?   What we're looking for   Your investment   Earnings potential    Case studies    What next?



This business is for serious entrepreneurs who are willing to put the time and effort into growing a successful business.  Anyone who's looking for a get rich quick fix can carry on dreaming, in business there is no such thing as a free meal!

This is a business in which you build the foundations and the success will then follow.  By this we mean that in your first year you should look at it from the point of view that you will learn your business intimately.  You will start it slowly and under control only accepting a certain level of business.  We recommend this to be around the 30,000 to 40,000 mark.

Please bear in mind that these figures are forecasts and some franchises make more or less. Please take into consideration that all turnover incurs a 10% MSF (management service fee) which is paid annually.
 

Example 1. Let's look at a hypothetical franchise which we will call a moderate operator.

Year 1 Turnover = 30,000
Year 2 Turnover = 60,000 (the first years 30,000 of re-installs and new customers amounting to 30,000)
Year 3 Turnover = 90,000 (the first and second year's 60,000 of re-installs and new customers amounting to 30,000)
These figures are based on customers renting their decorations and a 3 year install plan, which is fairly typical.

Now let's look at the costs associated with carrying out such works.

Year 1 stock = 13,500 (stock should never cost you more than 45% of your sale)
Year 2 stock = 13,500
Year 3 stock = 13,500

Other costs such as labour, petrol, van hire, marketing, storage, admin should never cost more than 25% of your sales.

Year 1 costs = 7,500
Year 2 costs = 15,000
Year 3 costs = 22,500

Now let's put these figures together and show you how much money you'd make each year

  YEAR 1 YEAR 2 YEAR 3
NEW SALES 30,000 30,000 30,000
RE-INSTALLS   30,000 60,000
TOTAL INCOME 30,000 60,000 90,000
       
STOCK 13,500 13,500 13,500
OPERATING COSTS 7,500 15,000 22,500
TOTAL COSTS 21,000 28,500 36,000
OPERATING PROFIT 9,000 32,000 54,000

As you can see from the above figures in year one you would earn 9,000, year two 32,000 and year three 54,000.  Now lets presume that in year 4 you decided you didn't want to bother with new customers and just service the ones you have. You wouldn't need any stock, you wouldn't need to spend any money on marketing and you could reduce your admin costs.

So lets reduce the operating costs from 25% of your income to 20%. 

On revenue earned on only re-installations of existing clients (90,000) you would have costs of 18,000 leaving you with an operating profit of 72,000. Now if you don't think that that's serious money from 3 months of business then we can tell you for a fact that there is nothing else out there that comes even close!

 

Example 2. Now let's look at a hypothetical franchise which we will call an enthusiastic operator.

Year 1 Turnover = 40,000
Year 2 Turnover = 80,000 (the first years 40,000 of re-installs and new customers amounting to 40,000)
Year 3 Turnover = 125,000 (the first and second years 80,000 of re-installs and new customers amounting to 45,000)
These figures are based on customers renting their decorations and a 3 year install plan, which is fairly typical.

Now let's look at the costs associated with carrying out such works.

Year 1 stock = 18,000 (stock should never cost you more than 45% of your sale)
Year 2 stock = 18,000
Year 3 stock = 20,250

Other costs such as labour, petrol, van hire, marketing, storage, admin should never cost more than 25% of your sales.

Year 1 costs = 10,000
Year 2 costs = 20,000
Year 3 costs = 31,250

Now let's put these figures together and show you how much money you'd make each year

  YEAR 1 YEAR 2 YEAR 3
NEW SALES 40,000 40,000 45,000
RE-INSTALLS   40,000 80,000
TOTAL INCOME 40,000 80,000 125,000
       
STOCK 18,000 18,000 20,250
OPERATING COSTS 10,000 20,000 31,250
TOTAL COSTS 28,000 38,500 51,500
OPERATING PROFIT 12,000 41,500 73,500

As you can see from the above figures in year one you would earn 12,000, year two 41,500 and year three 73,500.  Now let's presume that in year 4 you decided you didn't want to bother with new customers and just service the ones you have. You wouldn't need any stock, you wouldn't need to spend any money on marketing and you could reduce your admin costs.

So let's reduce the operating costs from 25% of your income to 20%. 

On revenue earned on only re-installations of existing clients (125,000) you would have costs of 25,000 leaving you with an operating profit of 100,000. Now this is serious money we're sure you'll agree, especially from only a few months of hard work.
 

So how realistic is it to find new customers every year, I hear you ask?

Well the answer really depends a lot on you.  We have franchisees who do less than an average operator while at the same time running other business interests.  We also have franchisees that blow these figure right out of the water! In 2011 and in the middle of a recession we had a new franchise hit just short of 60,000 sales in their first year. We had a second year franchise turnover 213,000 and another 124,000.  These results however weren't just luck, they were due to putting that extra effort in and having the right amount of drive and motivation that is required to set entrepreneurs aside from those who are employed by someone for a salary.

It's these kind of franchise operators we are looking for...Are you one?

The Christmas Decorators (franchising) LTD 2015 all rights reserved