Ah, good’ole April 15th. It comes but once a year and people immediately associate the date with the federal tax deadline. Except that in 2017, the government decided that you can get an extra two business days this year to wrap up your annual return. After all, the 15th is on a Saturday this year. Since your mind is already consumed with forms, deductions, and receipts, we figured we could use this extra time to fill you in on why tax preparation franchises might make a good match for your skill set.
When you buy into the concept of franchising, one of the greatest benefits is having instant brand recognition. And the tax preparation franchise industry is well represented by many household names such as H&R Block, Jackson-Hewitt, and Liberty Tax Service. Each of these brands operates thousands of locations across the country and millions of Americans utilize these tax preparation leaders each year in preparing their own personal returns.
In fact, depending on the size of your own hometown, it’s likely there may be a couple of visible name brand options not too far away. And with the annual April 15 deadline each year, recurring customers are guaranteed. That’s not to say that a tax preparation franchise is a seasonal business opportunity—many people (and businesses) pay taxes on a quarterly basis.
Now, would you say that you have to have had a career as a CPA to get started? Think again. These tax preparation franchises are designed to operate just like any other franchise category—with superior levels of support and training. But will the customers come? Absolutely, if the statistics are to be believed. It’s currently estimated that over half of American taxpayers used a tax preparation service last year.
Tax preparation franchises are, at heart, a service-oriented business, meaning that overhead costs are typically low, with little to no inventory type needs. And each of the aforementioned tax preparation franchises has an excellent track record and reputation for seeking continual input from their franchisee base.
So what does the crystal ball show for the future of tax preparation businesses? We’re glad you asked. According to recent statistics, the industry as a whole increased two percent between the years of 2010-2015 and is expected to keep growing. Revenues in the range of $11 billion are predicted for 2018. And the IRS estimates that there will be over 250 million tax returns filed by 2018, growing the entire accounting industry by four percent. As they say, timing is everything.
The advantages of investigating a tax preparation franchise are clear. For openers, there are few industry barriers for entry. Your franchise doesn’t have to be large to compete. In fact, small businesses, including sole proprietors, are just as prevalent as the big boys operating within the industry. The top four brands actually make up less than 50 percent of the market share, leaving plenty of room for others entering the industry.
If you happen to like working with people (and numbers), you might entertain the prospect of investigating a tax preparation franchise concept. And at FranNet, we can help you sort out the best fit for your own personal entrepreneurial journey.
Let’s chat! There’s a local FranNet consultant right in your market who knows that market inside and out – knows the personality of the market – knows the competitive landscape. FranNet has a great track record of assisting individuals on their path to entrepreneurship, and one of our franchise experts would love to provide you with guidance free of charge. Sound like something you might be interested in? Get started here and find your local consultant right now!