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Construction Franchise Opportunities and How To Work Out The Profit Cost Margin Shutterstock

Construction Franchise Opportunities and How To Work Out The Profit Cost Margin

By  May 14, 2019

The construction industry is already ripe when it comes to franchising opportunities. That’s why many investors and businesses have turned or shifted to the building and construction industry involving franchising as a key player to build a better future and achieve success.

In this post, you’ll learn the different types of construction franchise opportunities and how you can improve your profit cost margin when you’re engaged in this business.

Construction Franchise Opportunities

When it comes to construction franchise opportunities, there are a lot of options to choose from, such as maintenance, repairs, renovations, exterior and interior designing, landscape services, floor refinishing, and concrete leveling services.

One important aspect when choosing a construction franchise is knowing what you’re good at. While you’ll be hiring people to help you and you’ll get training and support from your franchisor, it’s still best to choose the one you’re interested in, and one you’re somehow knowledgeable about. Learn more about the right strategies you can implement for your construction franchise business by visiting

Here are a couple of construction franchise opportunities that you might want to look into if you’re going to start a construction franchise business.

Handyman Services: These services include bathroom repairs, insulation installation, home maintenance, deck repairs, drywall installation and maintenance, and other home improvement services.
Concrete Leveling Services: These services include concrete raising, stabilizing, repairs, and cement grout injection.
Building or Remodeling Services: Franchises in this field focus on the planning and construction process of a residential or commercial building. Their services also include securing permits, site inspections, financing projects, and finding subcontractors.
Residential or Commercial Landscape Services: These services include installing a concrete landscape, walkways, and commercial curbs.
Wood Cabinet and Floor Refinishing Services: These services include wood refinishing services for your hardwood floors and kitchen cabinets.
Interior and Exterior Designing Services: These services include providing interior and exterior decorations for residential or commercial buildings.

construction site in the shadows

How To Work Out The Profit Cost Margin

Some people who have invested in the construction industry failed to thrive because of failure to work out the profit cost margin. What is profit cost margin? How does it affect a construction franchise?

Profit cost margin is also called net profit ratio or net margin. It measures the net profitability of a business as expressed by this equation:

Profit Cost Margin = (Total Sales - Total Expenses) / Total Sales

The two different types of profit cost margin include the gross profit margin and the net profit margin. The gross profit margin measures the profit margin of a particular product or service only, calculated by deducting the costs of labor and materials to manufacture the product from the retail price. On the other hand, the net profit margin involves the net profit of a business as a whole (in a specific period), determined by computing the total income less the total expenses, and dividing it by the business total revenue.

While the profit cost margin can help you determine if the construction franchise is profitable or not, many factors can affect the success or failure of a business like a sudden change in economic conditions. However, profit cost margin can help you identify if there’s something wrong with managing your business, enabling you to make smart decisions.

Here are some ways to improve your profit margin when you’re in the construction franchise industry:

● Track all your expenses, including upfront and long-term costs, such as permits, licenses, liability insurance, workers’ compensation, the salary of your construction workers, payroll of other staff members, training and development, sales and marketing efforts, and day-to-day operating expenses, including telecommunications and utility bills.
● Don’t hesitate to use digital technology to help you track your expenses and help you with budgeting such as FreshBooks, QuickBooks Enterprise, Sage 50Cloud, Xero, or Tradogram. You can learn how to use accounting or budgeting software by watching online tutorials, like those available on YouTube.
● Promote your construction franchise using proven and less expensive methods such as email marketing. Most service-based businesses are successful using email marketing because this digital marketing strategy is targeted and personalized.
● Engage with your customers, clients, and investors through continuous follow-up, updates, and creating your online portfolio. Your construction franchise business can benefit from referrals by providing excellent services, thus cutting down on your marketing expenses.


While you might have an idea of the best construction business for you, remember that not all construction franchise opportunities have the same expected profit cost margin. It can be quite tricky, most especially if you’re just starting. Knowing how to work out your profit cost margin will help you determine the best course of action or options to take when problems arise.



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