When To Expand Your Tax Preparation Business
One of the unique aspects of a tax preparation business is how well it can scale over time. If you're successful in your neighborhood, you'll likely be able to select another location and replicate your success. The key is knowing when you've reached that point and where you'll want to go to.
Wait A Few Years
Don't base your decisions on a single year. There are any number of different variables which could cause skewed results for a single year. Any or all of them could evaporate the next year. You may face new challenges or find old solutions not working in a new year. After you have a year or two of experience is the best time to start considering a second location. This is less applicable to people who have prior experience in business, especially in the tax business. If you have recently switched to become a franchisee €" for example, integrating your existing location into Liberty Tax €" franchise expansion may be wise after a single season. Purchasing two at once might even be recommended.
Look For Opportunities
In many cases, the best way to expand is by working locally. Look around for places within or near your community that might benefit from a tax prep business. The most successful companies fill a need; with something like a tax preparation business, that need could be created simply by not having something in the area that is close enough to be convenient. If you can fill that need, you'll be in a prime position to make money as a result.
Understand The Franchise Requirements
In order to expand, you'll need to be aware of the process for purchasing additional franchises. Usually there are restrictions placed on how close any two can be to each other. The central office will coordinate everything. If you're curious about what's available, talking to them is a good place to start. Don't just assume that because you see an opportunity in one neighborhood you'll be able to open a Liberty Tax franchise there. That territory might already be taken.
Watch For Purchase Deals
Periodically, headquarters will likely provide special deals and incentives to zees. If you're on the lookout and know when sales can be expected, you may be able to secure an even more advantageous position for starting your new venture. Of course, these offerings can be hard to predict and may come after the window of opportunity for an ideal purchase has passed. The value of waiting for one of these deals isn't likely to outweigh the value of being the first person to start serving an underserved community.
Wait A Few Years
Don't base your decisions on a single year. There are any number of different variables which could cause skewed results for a single year. Any or all of them could evaporate the next year. You may face new challenges or find old solutions not working in a new year. After you have a year or two of experience is the best time to start considering a second location. This is less applicable to people who have prior experience in business, especially in the tax business. If you have recently switched to become a franchisee €" for example, integrating your existing location into Liberty Tax €" franchise expansion may be wise after a single season. Purchasing two at once might even be recommended.
Look For Opportunities
In many cases, the best way to expand is by working locally. Look around for places within or near your community that might benefit from a tax prep business. The most successful companies fill a need; with something like a tax preparation business, that need could be created simply by not having something in the area that is close enough to be convenient. If you can fill that need, you'll be in a prime position to make money as a result.
Understand The Franchise Requirements
In order to expand, you'll need to be aware of the process for purchasing additional franchises. Usually there are restrictions placed on how close any two can be to each other. The central office will coordinate everything. If you're curious about what's available, talking to them is a good place to start. Don't just assume that because you see an opportunity in one neighborhood you'll be able to open a Liberty Tax franchise there. That territory might already be taken.
Watch For Purchase Deals
Periodically, headquarters will likely provide special deals and incentives to zees. If you're on the lookout and know when sales can be expected, you may be able to secure an even more advantageous position for starting your new venture. Of course, these offerings can be hard to predict and may come after the window of opportunity for an ideal purchase has passed. The value of waiting for one of these deals isn't likely to outweigh the value of being the first person to start serving an underserved community.
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