Business Services Industry

Business Services Franchise & Business Opportunities

General Business Services Industry

The Business Services industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com provides a variety of services such as photocopying, printing, mailbox rental and support, blueprinting, parcel and mail delivery, office administration, hiring and placing of personnel, consulting, security services, travel arrangement, cleaning, and waste disposal.

The Business Services industry has over 400,000 open businesses and combined annual sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. of $917 billion.

Business Services Industry Trends

Companies in the business services industry will continue to invest in the integration of digital transformation into the overall strategic road map, not only to connect sellers and buyers directly but also to keep competitive within the industry. In addition, the demand for cybersecurity has been increasing as cybercriminals have been attacking businesses and threatening their data and confidential information. Firms that are victims of cyberattacks face great cost as clients tend to search for a more secure service provider.

Key Business Services Industry Numbers

SBA Non-Franchise Business Loan Data

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Paid-in-Full Rate

The Paid-in-Full Rate Referring to the SBA 7(a) Loan Program, how many businesses in a particular industry paid their SBA loans in full including interest relative to… is when the SBA loan is fully paid off by the small business owner including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, indicating financial strength.

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Charged Off Rate

The Charged Off Rate Also can be referred to as the SBA Loan Default Rate, the charged off rate is percentage of businesses in set field (e.g. industry)… is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.

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SBA Loan Success Ratio

For every 11 SBA franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… loans fully paid including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, 1 SBA loan was unable to be paid back, or defaulted.

*SBA Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Loan Data from 2010-2019

*Non-Franchise Businesses taken into account: 55,045

Franchises in the Business Services Industry

These types of businesses focus on service other businesses grow in particular through their business operations. This can be through accounting, tax planning, marketing, office supplies, and more. These businesses focus on business-to-business, commonly known as B2B. They do not provide products or services that are direct to consumer, like businesses in the retail industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com.

In 2019, the business services industry had a total revenue of $10 billion, and has had an annual 1% growth since 2014. With 27.9 million small businesses in the U.S., almost every business no matter the size will need at least one business service company to support in their efforts.

Outsourcing other services to professionals will allow the business itself to focus on its main services. Franchises in the business services space must show other companies they will provide more value relative to these companies having staff in-house.

These franchises are a popular option because they are a low investment amount and secure.If you had past experience in the corporate world, but want to run your own business, you may find familiarity in running a franchise in the business services industry space.

Furthermore, new companies can enter into the business services market as there is no dominant competitor within this industry.

Business Services Industry Franchising Trends

There has been growth in the personal staffing industry, as technology advances business can create systems and programs for telephone operators and guest services outside of the physical office.

As small businesses continue to grow, so will the demand for business services. More businesses also prefer to outsource business services because it is more cost effective than hiring full-time staff.

How much can a Business Services franchise cost?

Through our online platform Vetted Having put someone or something through a careful examination. At Vetted Biz, we put franchises and businesses through a careful examination and benchmarking of… Biz, we have reviewed over 1,600 businesses and franchises. Of the concepts in the business services space we have reviewed, total investment amounts can start as low as $925 all the way up to $26,690,000. Out of all Vetted Biz’s specific industries, the business services industry has the smallest range and the lowest maximum investment amount. In our research, the average royalty fee takes up to 10.4% of gross revenue The total amount in dollars made in the business before expenses are deducted. See also Sales., and the average marketing fee is 2.2% of the gross revenue. Many business services industries have a higher royalty fee relative to other industries but they make up for it with less or even no marketing fee. In the SBA analysis for the 7(a) loans from 1991 to 2019 adjusted with loan disbursed, franchises in business services had a paid in full rate of 61.4% and a charged off rate Also can be referred to as the SBA Loan Default Rate, the charged off rate is percentage of businesses in set field (e.g. industry)… of 12.1%

Average Business Services Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com Percentage Fees

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Royalty Fee

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Stability Rate

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Marketing Fee

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Growth Rate

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Failure Rate

Standard Business Services Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com Investment

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This metric is the standard industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 160 franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… concept investment breakdowns in order to calculate this figure.

SBA Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… Loan Data

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Paid-in-Full Rate

The Paid-in-Full Rate Referring to the SBA 7(a) Loan Program, how many businesses in a particular industry paid their SBA loans in full including interest relative to… is when the SBA loan is fully paid off by the franchisee including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, indicating financial strength.

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Charged Off Rate

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SBA Loan Success Ratio

For every 10 SBA franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… loans fully paid including interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at…, 1 SBA loan was unable to be paid back, or defaulted.

*Franchise Businesses taken into account: 2,390

Sample Business Services Franchise Income Statement

Year 1
Year 1	Base	% of Gross Profit The profit a business makes after deducting the costs involved in making, providing, and selling the goods and services. In an income statement, it…	High	% of Gross Profit
Sales The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue.	$ 1,181,100	100%	$ 2,333,300	100%
Cost of Goods Sold Also known as Cost of Sales, Cost of Goods Sold includes the direct costs associated with generating revenue. Depending on the business, it can…	$ 1,049,000	89%	$ 2,072,400	89%
Gross Profit	$ 132,100	11%	$ 260,900	11%
Expenses
Rent	$ 30,000	23%	$ 42,000	16%
Utilities	$ 300	0%	$ 300	0%
Marketing / Advertising	$ 36,000	27%	$ 60,000	23%
Insurance	$ 4,000	3%	$ 4,000	2%
Royalties Fees paid by a franchisee to their franchisor in order to operate a franchise location. They are usually on a weekly or monthly basis.	$ 22,500	17%	$ 44,400	17%
Salaries / Wages	$ 33,300	25%	$ 49,900	19%
Repairs and Maintenance	$ 1,000	1%	$ 1,000	0%
All other expenses	$ 1,000	1%	$ 1,000	0%
Total Expenses	$ 128,100	97%	$ 202,600	78%

Owner Benefit The amount of money a business owner receives before taxes from a business’s operations over the course of a year.	$ 4,000	3%	$ 58,300	22%
Net Profit Margin The net profit margin shows how much a business is generating profit for every dollar of cost, expenses, interest, and taxes involved. It is…	3%		22%

Year 3
Year 3	Base	% of Gross Profit	High	% of Gross Profit
Sales	$ 3,543,300	100%	$ 7,000,000	100%
Cost of Goods Sold	$ 3,147,100	89%	$ 6,217,200	89%
Gross Profit	$ 396,200	11%	$ 782,800	11%
Expenses
Rent	$ 30,000	8%	$ 42,000	5%
Utilities	$ 300	0%	$ 300	0%
Marketing / Advertising	$ 36,000	9%	$ 60,000	8%
Insurance	$ 4,000	1%	$ 4,000	1%
Royalties	$ 67,400	17%	$ 133,100	17%
Salaries / Wages	$ 83,200	21%	$ 116,500	15%
Repairs and Maintenance	$ 1,000	0%	$ 1,000	0%
All other expenses	$ 1,000	0%	$ 1,000	0%
Total Expenses	$ 222,900	56%	$ 357,900	46%

Owner Benefit	$ 222,900	44%	$ 424,900	54%
Net Profit Also known as net income or net margin, the net profit is the net income on an income statement. It is the revenue minus… Margin	44%		54%

Franchise Industries: Free Guides Available

Learn more about the Business Services Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com

Are you interested in owning a franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… in business services?

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