Small Business Opportunities | SBO January 2005

The advent of another year is a good time to consider starting your own business. If you’ve been putting it off, we have twenty businesses for you to investigate further to determine if they could be right for you, your lifestyle and the market in which you live. We selected the businesses for their value, timeliness and demand in our culture and longevity. There is something for every interest and budget. Go through the list and start your own due diligence search to find the business that is just perfect for you. Get rich in 2005 and have a lot of fun in the process. The twenty businesses are listed in no particular order.

Creative Colors International

Creative Colors International is currently one of the largest franchises in the repair, reconditioning and color restoration of leather, vinyl, fabric, plastics and carpeting in the automotive, furniture, commercial and residential markets.

Just as CCI franchisees offer high quality, affordable repair services to consumers and businesses, the CCI model offers a low-cost, home-based business that can turn profits immediately. With a franchise fee of $19,500 and a royalty of six percent, CCI is an appealing opportunity for any entrepreneur. Modest start-up costs, a complete in-depth training program, ongoing support and a national network of professionals allows CCI franchisees to experience success immediately. The company’s sales for 2004 were projected to be $10.5 million.

Creative Colors International, Inc. started out as a local, family-run business in 1980 and is currently one of the largest franchises in the repair, reconditioning and color restoration of leather, vinyl, fabric, plastics and carpeting in the automotive, furniture, commercial and residential markets. Today, CCI has expanded well beyond their local roots in the Chicago area to more than 60 franchisees operating 150 mobile units throughout the United States and Canada.

As a CCI franchisee, ongoing support from corporate does not stop after training. CCI franchisees experience several field visits during the first few years of operation, where CCI’s veteran technicians provide continuous education and training. CCI corporate has established an (800) support line and a 24-hour Intranet for all technicians needing immediate help. Additionally, CCI offers all of its franchisees a free training program every year so technicians can continue to be on the forefront of the latest tools and techniques.

CCI continues to expand and grow at a rate of 10 new franchises each year, expecting 450 mobile units to saturate the United States market. Even with this aggressive expansion, CCI remains a family business. Everyone involved at the corporate level is somehow related to the co-founders, Jim and JoAnn Foster.

Specialty Merchandise Corporation

It is quick and easy and fun. We’re referring to Specialty Merchandise Corporation and their ability to help you start your own business selling more than 3,000 products ranging from lamps and birdfeeders to bookends and mirrors. The list seems endless and there are products that appeal to every taste, budget and age group.

You start by visiting www.smchomebiz.com and making an investment of $25. You can also call 800-850-8833 to learn more about starting your own business with help from SMC.

We recently heard from a reader who told us that he was unemployed and sent SMC $25 plus shipping and became a member in April 2004. He made his first sale in late April and paid his rent and expenses for the next three months by selling SMC products.

PhotoSmartCart

Would you like to take 29 cents and turn it into a keepsake you can sell for $10 to $20? You bet! You can, with help from the fabulous PhotoSmartCart. This biz is a winner.

Historically, on-location photography opportunities have been limited to the major theme parks and venues that could afford to install proprietary photo systems costing hundreds of thousands of dollars. The portability, functionality and cost of the PhotoSmartCart has changed this scenario.

PhotoSmartCart owners can now tap into the demand for on-location photo printing and sales just about anywhere. Here is a sample of opportunities where you could use your PhotoSmartCart to produce highly profitable, bordered photographs on demand: Adventure Sports, Baby Shows, Bah Mitzvah, Banquet Halls, Boat Trips, Book Signings, Business Hotels, Business Meetings, Character Photography, Church Events, Club Events/Outings, Company Meetings, Concerts, Corporate Headshots, Cultural Event, Dance Recitals, Dinner Theater, Dog Shows; well, as you can see the list of moneymaking possibilities is endless.

You can work when you want to with the PhotoSmartCart. It’s good looking and durable. The cost of the cart is $22,500 and the company will put you on a 36-month repayment schedule if you like. Selling 100 photos a day at $10 each can gross you $365,000. Start shopping around for your locations and start making money. The Starter Kit includes a roll of Fujifilm paper for the production of 550 6” x 4” photos and an assortment of photo folders.

You can get started in no time at all-many folks train in half an hour. Log onto the Members section of the PhotoSmartCart website and you’ll soon be sharing tips on how to generate leads and identify good placements to maximize your moneymaking potential. The company offers technical and operational support, too.

There are many entrepreneurs who regularly make as much as $2000 a day and some who are making $8000 in 10 hours.

Visit www.photosmartcart.com to learn more. The company is based in Chicago, Illinois. The phone number is 800-506-6514.

Auction Franchise

Americans love eBay, but do they have the time to sell everything they'd like to merchandise on the popular site? The answer is 'no' and three new franchises have popped up to cater to folks who want to sell their stuff, but who don't have time to take photos, post listings, monitor auctions and wrap and ship the goods. You can explore options with these new franchise opportunities. They are not all available in every area of the United States, but check them out and send an email and get your name on the list if you so desire. The companies merchandise and sell the materials, but take a hefty commission. Here are three companies looking to expand:

QuikDrop (www.quikdrop.com) is based in Nevada, but plans to open 300 U.S. locations in the next three years. They take between 20% and 38% of the selling price. The larger the sale price, the lower the percentage of the commission.

NuMarkets (www.numarkets.com) has a flat commission rate of 30% at press time. Check the site for info.

Snappy Auctions (www.snappyauctions.com) takes a commission ranging between 15% and 35%. You'll need a storefront to run this business and a small staff to help you. Visit the websites for more information.

Liberty Tax Service

You don’t need to be an accounting ace to open your own Liberty Tax Service. You hire the help to process the forms, data and tax requirements and sit back and count your profits.

In 2004, more than 60% of the population paid someone to prepare their income taxes. The number of people using tax preparers and accountants continues to grow. According to Liberty Tax Service, the industry is recession-proof. Filing an income tax return is a certainty. In 2003, many tax changes were introduced and this is a trend that promises to keep tax preparers busy.

John Hewitt is the CEO and founder of Liberty Tax Service. He has 35 years of experience in the income tax industry, working first for H&R Block as a regional director of 250 offices. Then he went on to found John Hewitt Tax Service, a company that still bears his name. In 1997, Jackson Hewitt was sold for $483 million. He’s now grown Liberty Tax Service to be the fastest growing retail tax preparation firm ever.

The franchise opportunity is less than $50,000 and that includes the franchise fee. Comprehensive training is provided. If you’re interested, call 800-790-3863 to request more information or visit the website at: www.libertytax.com. The company is based in Virginia Beach, Virginia.

Wood Re-New

It was the gray and weathered look of Stan Krempges’ deck and cedar siding that prompted the start of what is now one of the leading exterior wood restoration companies in the nation.

Krempges, founder of Springfield, MO-based Wood Re New, spent years struggling to maintain the natural look of the wooden fixtures on the exterior of his home. In 1992 he began researching ways to solve the age-old problem of wood degradation. After many months of research, he partnered with a chemist and developed a series of products and procedures that restore and maintain wood’s natural appearance.

These products and procedures developed by Krempges are the backbone of Wood Re New and its parent company Wood Brite, a business that he started out of his home in 1993 and has since transformed into a multi-unit national franchise operation.

“Maintaining the appearance of exterior wood is a major problem for homeowners across the country, regardless of the climate they live in,” Krempges said. “Wood Re New’s environmentally safe cleaners and preservatives clean and protect wood, restoring its natural color and the texture no matter the age of the wood.”

Studies show that, for approximately 25 percent of all homes in the United States, the services offered by Wood Re New are an environmentally safe and cost effective way for Americans to protect these costly investments. The Wood Re New Service cleans wooden decks, fences, docks, siding or playgrounds using a specially developed environmentally-friendly cleaner, and then applies a preservative which seals the wood from the inside to prevent the leaching of arsenic, as well as the growth of mold and water and sun damage.

“There is a great demand for cost-effective wood restoration services nationwide,” said Krempges, who was a partner in a fencing company before founding Wood Brite. “When I was working in the fencing industry, customers were always asking me how to maintain the appearance of their wooden decks and fences, and I have found a solution to their problems.”

The U.S. Environmental Protection Agency recently placed a ban on the use of CCA, or chromium copper arsenate, a known carcinogen in pressure-treated lumber. In conjunction with this ban, the EPA has advised homeowners not to remove existing decks, playgrounds or other structures made with the wood, but instead coat it with treatments such as those offered by Wood Re New.

In light of the EPA’s recent announcement, Krempges and Wood Re New owners nationwide have been responding to the requests of consumers seeking a way to protect themselves and their families from the arsenic-treated wood that fills their local parks, schools and even their own backyards.

“This EPA announcement is something that is going to change the business for companies such as Wood Re New,” Krempges said. “While many people used to view treating decks, fences and other exterior wood as something that had only aesthetic value, they will now begin turning to wood treatment companies such as us to help them protect their families from the potentially harmful chemicals that they may have in their own back yards.”

National expansion plans are underway. The costs associated with opening a Wood Re New franchise are approximately $40,000-50,000 with a week training in Springfield, MO, as well as a week of onsite training. Franchisees are also provided with ongoing technical support.

“Wood Re New is an excellent franchise opportunity for any prospective entrepreneur looking to go into business for themselves,” Krempges said. “This is an industry where the demand will always continue to outweigh the supply. Additionally, there are no build-out costs associated with this business, making it more cost effective than many other business investments.”

Wood Re New’s 2003 systemwide sales were $815,000. Projected systemwide sales for 2004 are $1.3 million and, by 2010, projects call for systemwide sales to climb to $10 million.

Little Gym

“Are we havin’ fun yet?” asks Adam Stone, a multi-unit franchisee for The Little Gym, as he enters his bustling Glenview, IL location, one of more than 160 thriving units in 14 countries.

The answer to Stone’s rhetorical question is evident: In clear view are 16 bouncy toddlers leaping happily about to an original version of “The Itsy Bitsy Spider,” as their parental counterparts beam with pride. Stone’s success, and that of every The Little Gym franchise owner, is built on the same principle the company applies every day for the children entrusted to its care: “Motor Skill Development Made Fun Builds Confidence That Leads to a Lifetime of Success.” Ask any The Little Gym franchisee how they feel about their business and the answer is strikingly similar: Owning a The Little Gym is fun. Sales for the company hit $75 million this year.

“As you help children develop motor skills, they sparkle; and their parents see what a positive impact you and The Little Gym are making in their lives,” said Bob Bingham, president and CEO of The Little Gym, International, Inc. “Through our thorough training program, our franchisees’ confidence grows, as does the success of their gym. We have more than 100 franchise owners who are proud and happy to live their dreams every day. They enjoy a fun and rewarding career, while enriching the lives of children and building a sound financial future. It doesn’t get any better than that.”

The Little Gym is the premier children’s motor skill development program in the world that for 28 years has provided hundreds of thousands of children worldwide with physical, intellectual, emotional and social benefits. Founder Robin Wes, a musician, former gymnast and degreed kinesiologist (the study of movement), opened the first The Little Gym in 1976, building the foundation for future success with a unique motor skill development program that focuses on fun, positive experiences in a non-competitive environment.

In 1992, The Little Gym International, Inc., was incorporated in order to franchise Wes’ extraordinary concept. Two years later, Bingham, a successful broadcasting executive, joined the company as president and CEO with a fresh and unique concept on how to build a franchising company—”cloning” the system’s most competent franchisees.

“Rather than grow with franchising executives from other companies, I recognized the extraordinary backgrounds and experience of The Little Gym franchise owners themselves,” Bingham said. “My vision was to bring these people, bound by their common passion for The Little Gym business, together as a team and have them help guide the company’s future,” said Bingham, noting that almost all of The Little Gym management team are current or previous The Little Gym franchise owners.

The process expanded in 1997 as Bingham began to replace his entire franchise support staff with existing franchise owners. He asked his most competent, profitable franchisees to give 10 hours of their time each week to help and advise new owners. Once implemented, the “owner/advisor” program boosted the success rate of new franchisees astronomically. Bingham then decided to capture the expertise of the experienced owners on the management team.

“The idea was for our best owners to come on board at the corporate level and create and clone themselves in our franchise system,” Bingham said. “Our new franchisees have a great deal of respect for our management team because they know they have been there as franchisees themselves. That lends tremendous credibility.”

The Little Gym franchise owners come from diverse backgrounds, including former attorneys, doctors, teachers, sales and marketing executives or others in the business world who felt there was something missing in their lives. According to Bingham, people with virtually any background can be successful as The Little Gym franchise owners, as long as they are motivated, energetic and share a love for children and make use of the variety of support tools provided by The Little Gym corporate office.

“Our programs are based on meticulously and professionally developed curriculum that we teach every franchise owner,” he said. “We teach them every detail of everything from the skills of how to properly work with children of all ages to recruiting and training staff,” said Bingham, adding that each franchise owner is assigned a New Business Specialist (often people who have successfully owned or managed a The Little Gym themselves). They provide consistent and ongoing support to nurture the rapid growth of our franchisees’ business.”

As word spreads of the fulfilling and financially satisfying nature of owning a The Little Gym, interest in the franchise concept is at an all-time high, with an average of six new franchise territories awarded each month. The Little Gym facilities are approximately 4,000 square feet and are usually found in strip malls or business parks.

“We are finding that in recruiting franchisees, financial success is important, but it isn’t everything,” Bingham said. “The opportunity to work with kids and make a difference in their lives, and to have fun while working hard is what drives our franchise owners to change their lives and be in control of their own destiny.”

The Little Gym franchise system includes a significant share of former attorneys, doctors and corporate executives who walked away from lifelong successful careers to find a different kind of fulfillment seeing children build confidence and have fun at The Little Gym.

While The Little Gym fields multiple inquiries from prospective franchisees daily, the company takes pride in selectiveness—awarding franchises to only the most qualified candidates who show passion for the concept, exceptional business aptitude and a true love for children.

The Little Gym International, Inc., headquartered in Scottsdale, AZ, was formed in 1992 in order to franchise The Little Gym concept. For more information visit www.thelittlegym.com.

Comfort Keepers

Non-medical services and care for senior citizens is a booming market and you can cash in with your own Comfort Keepers franchise. The number of seniors is climbing and many of them require the services offered by Comfort Keepers franchisees. These services include: grocery shopping, errand services, laundry, clothing shopping, recreational activities, organizing the mail, grooming and dressing guidance, meal preparation and light housekeeping tasks. In-home companionship is a great thing for senior citizens. They are willing to pay individuals money to keep them company and help them around their home. It’s a great step to helping seniors live at home.

Kristina Clum was a Registered Nurse who was an expert in Home Health Care. She realized that her patients needed help with daily living tasks. Kristina and her husband Jerry came up with the concept of non-medical care in the form of Comfort Keepers. The company opened their first office in 1998 and started franchising in 1999.

Comfort Keepers now has 410 offices in 45 states, making it one of the fastest growing franchises in the United States. But there is plenty of room for growth as our population ages. Over the next few decades the number of seniors will grow to a market of more than 70 million individuals. Right now there are about 35 million seniors.

You can start this business as a home-based enterprise. The franchise fee is $18,750 and the total investment ranges from $40,000 to $60,000 including franchise fee, startup costs and working capital.
This is not the first time we’ve written about Comfort Keepers as an opportunity for you to consider and it won’t be the last!

Visit the website at: www.comfortkeepers.com or call 800-387-2415 to request a franchisee information package. You’ll receive an exclusive territory and you get all of the necessary training and operational information to run this business. You’ll also receive ready-to-print newspaper ads and brochures. All of the logo and signage is also included along with in-home care agreements and employee training manuals you can use.

Lo Fat Know Fat

Americans are awakening to the fact that they need to change their eating habits. Of the $1 trillion Americans spend on food annually, roughly half is spent outside the home. Fully 65% of the population is obese (127 million people), causing the Centers for Disease Control (CDC) to label the problem a national epidemic. The U.S. Surgeon General estimates that within 10 years obesity will overtake tobacco as the leading cause of preventable death. Already, obesity costs the country $117 billion in health-care expenditures annually.

Within the past year, almost every food-related company has recognized the American consumer’s yearning for a healthy alternative to today’s food offerings. Quick Service Restaurant (QSR) chains Hardee’s, McDonald’s and Subway now offer bun-less burgers, premium salads and low-carbohydrate wraps. Casual dining outlets T.G.I. Friday’s and Applebee’s now pay millions for the right to associate their dishes with Atkins and Weight Watchers. Retail outlets Wal-Mart and Trader Joe’s have begun carrying and shelving many varieties of nutritionally oriented products. However, no one has staked a claim as the dominant, pure-play, healthy fast-casual food destination. LFKF is well-tested and positioned to become the dominant national brand in the healthy food category, thereby becoming the destination of choice for people who want tasty, healthy, and convenient food and the nutritional products that supplement their diet.

When asked, most people will say that they realize the health benefits of a well-balanced diet and they strive to eat healthier foods. According to Prevention magazine, 87% of consumers view healthy eating as a better way to manage illness than taking medication. Along with striving to eat healthier, Americans have also changed the way they look at their health and life in general. This has led to three additional major health trends:

Dieting as part of a healthy lifestyle: A nutritious and well-balanced diet program is now seen as one part of a healthy lifestyle, not a short-term way to lose weight. Healthy eating has become a way to increase vitality, longevity and overall quality of life. Consumers are trying and sticking with health programs of Weight Watchers, South Beach Diet, Zone Diet and Atkins. They are truly changing their lifestyles by eating well-balanced, healthy diets.

Rise in gym memberships: Americans are working out more. The total number of gym memberships has grown by 22% over the past five years. While all segments of the population are working out more, the aging baby-boomers are the fastest growing segment of health club members, up 380% since 1987.

Consumers are challenging restaurants to meet their new dietary needs: They are demanding healthy, tasty food. In a January-March 2003 survey by Sandel-man & Associates, 63% of fast-food users complained about the lack of low-fat, low-cal menu choices. Forty-one percent said they would visit more often if the chains offered more healthy choices. In February 2003, when Harris Interactive asked why 36% of quick-service diners ate out less often, the top reasons involved waistlines rather than wallets. Sixty-seven percent were eating healthier, while 52% said fast food was too fattening.

The term “supersize” has actually become a verb in the English language; one fourth of all vegetables consumed in the U.S. are french fries; and most alarmingly, if Americans continue their current eating habits, today’s children may be the first generation in modern history to live shorter lives than their parents did. The trend is impacting food sales through retail channels as well. 7-Eleven recently announced that they will be adding an entire line of healthy “carb conscious” products, Trader Joe’s devotes entire aisles to health-oriented items, and several grocery stores have emerged that are entirely dedicated to healthy foods (Castus, Low-Carb Crazy, Pure Foods, et al.). According to ProductScan, at least 800 low-carbohydrate products have been released in the U.S. markets during the last two years.

Ever since franchise guru George Naddaff built Boston Chicken (now Boston Market) into a national brand and sold it to former executives of Blockbuster, he has been looking for the next hot concept. Predicting that healthy eating would become a mega-trend in the U.S., Naddaff scoured the country, visiting and analyzing restaurants that purported to be health-oriented. In January 2004 he discovered Lo Fat Know Fat (LFKF), a Boston-based healthy fast-casual restaurant and retail center. Naddaff is not the only one who is excited. Bob Grayson, former CEO of The Limited Stores and Greg Horn, former CEO of General Nutrition Centers (GNC), have invested and joined the KnowFat Franchise Company, heightening an all-star investor group.

While the established quick-service restaurants (QSRs) are scrambling to transform their menus to more healthy fare, LFKF has been at the forefront of the healthy eating mega-trend for five years. The original 2000+ square foot store in Watertown, MA has been successful since its 1999 opening and has experienced steady and explosive growth on an annual basis. The second LFKF store opened in December 2002 in Shrewsbury, MA and posted impressive first year results. LFKF’s ready-to-eat food sales have surpassed the average annual per store sales of some of the largest QSR chains in the country including KFC and Taco Bell. Sales of the nutritional products in the retail center have exceeded those of the average GNC. With the highest per store sales volume in the nation, LFKF is the leader in the burgeoning healthy, fast-casual restaurant category. A third LFKF store is scheduled to open this summer in Woburn, Massachusetts.

LFKF’s broad menu includes steak, chicken, and turkey entrees; a full line of wraps; lean burgers; salads; sides including proprietary fries that are not fried; steamed vegetables; smoothies; and desserts. The menu details the calories, fat grams, carbohydrate grams and protein grams of each menu item. This allows consumers to quickly decide which menu items best fit with their dietary needs. Combining the restaurant with a retail center has proven to be a winning business model, as each section drives customers to the other. LFKF has found that its customers really appreciate the convenience of having nutritional products available in a restaurant setting. Most experts predict continued exponential growth in the use of dietary supplements by the American public and expect the supplement industry to grow more quickly than the drug industry. Total retail sales for the industry reached $17 billion in 2003, more than doubling from $8 billion in 1995.

LFKF customers, on average, visit three times per week in contrast with Boston Market customers who average one visit per week and the average Kentucky Fried Chicken customer who visits once every six weeks. LFKF is meeting the pent-up consumer demand for healthy, tasty, ready-to-eat food. LFKF’s customer loyalty is evident, as 77% of store visitors are repeat customers, and 75% of new LFKF customers come from current customer referrals. According to Naddaff, “The sales in our current stores clearly show that the pent-up demand for convenient healthy food is clearly enormous. We have become a nation of the obese and the time is now for a healthy, tasty alternative to the typical quick service options available today.”

Naddaff is currently preparing for a nationwide franchise blitz. Management intends to award 100 franchises within the first two years of operation and over 400 franchises within four years. LFKF’s strategy of franchising primarily to Multi-Unit Food Service Operators (MUFSOs) is a way to grow efficiently, keeping capital costs down and maximizing the speed of opening branded units.
Naddaff, Chairman and Co-Chief Executive Officer of The KnowFat Franchise Company, has amassed an impressive team to lead LFKF in its aggressive growth plan. Eric Spitz is President and Co-Chief Executive Officer. Spitz, an MBA from MIT, founded Trakus where he raised over $25 million of venture capital. Gary Jacobus is Chief Operating Officer. He holds an MBA from Dartmouth and is the former VP of corporate marketing for the NFL and former senior VP at IMG, where he ran the worldwide corporate consulting practice. Tom Mackey, VP of operations, was the vice president of new growth for Metromedia Restaurant Group, parent of Bennigan’s, Ponderosa, Bonanza and several other casual dining restaurants. Tim Kurtz is the visionary founder of LFKF. He grew up in the physical fitness industry, first as a regional director for Gold’s Gym in Massachusetts and then as a proprietor of Flex Appeal, a nutritional supplement store.

The franchise fee is $35,000 and the total cost of opening one store ranges from $500,000 to $700,000. Five weeks of training are offered in Boston.
For more information, contact: The KnowFat Franchise Company, 305 Walnut Street, Newton, MA 02460. Visit the website at: www.knowfat.com.

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GET RICH IN 2005.

20 dynamic moneymakers to start right now.