I invested about $200,000 in vehicles to host on Turo.
My Turo hosting journey began in 2018. I quickly scaled to a fleet of 20 vehicles over about 15 months. Fifteen of those vehicles belonged to me, and five of them belonged to other people who sent them to me to manage for them. Between lease payments, cash purchases, insurance premiums, and registrations I invested about $200,000 in the assets required to run my business. That’s all before my monthly operating expenses.
I did pretty well with my Turo business and exited in 2022. My utilization was strong, 12-month average profit margins held at around 30% (lower some months, a little higher other months), and for the most part, Turo was a solid business partner. But I know something now that I wish I had known in 2018. I also wish I had known this before I helped hundreds of other people get into the Turo business.
I could be making $1 million per year right now with half the investment.
I’m now the founder and president of Quantum Franchise Group, an award-winning franchise brokerage and consulting firm headquartered in Michigan with 8 regional offices and consultants around the country, and three more in the process of joining our team. We represent about 800 franchise systems across 37 different industries and have helped aspiring entrepreneurs open new businesses from coast to coast.
I’ve spent the last year studying hundreds of franchises across dozens of industries. That research, and the success we’ve seen with helping others open businesses with those franchises, makes me wish I could go back in time to 2018 and do something different. If I had done the following three things, I would likely be generating over $2 million in top-line revenue per year with profit margins ranging from 40% to 60%, possibly higher.
Invest about $100,000 of my own money in a home services franchise in 2018. This could have even be done with a $20,000 down payment and SBA loan for $80,000.
Over 2 years, save about $100,000 of my profit to fund business number 2.
In 2020, let business number one invest another $100,000 or so in a second home services franchise.
If I had simply done those three things, I would likely have the following today (even with a Covid disruption):
Two recession-resistant semi-passive businesses with about $500,000 in net profit each per year (potentially more).
Two businesses that could eventually be sold at a multiple (Your Turo business cannot be sold and utilizes depreciating assets).
If I had simply done those three things I could have avoided:
Revenue being halted by manufacturer recalls causing my vehicles to be temporarily delisted.
Revenue being halted by crashes leaving my vehicles in body shops for weeks.
Revenue being reduced by changes in the Turo TOS.
Variable revenue due to seasonality.
Hundreds of stressful trips with terrible guests.
Hours spent retrieving vehicles from impound and doing risky repos.
Why the home services industry?
We work with franchises in 37 different industries ranging from restaurants, to health & wellness, to pet care, to senior care, children’s services, sports and fitness, and many others.
Of all the industries we work in, the home services industry generally requires the lowest investment, has the fastest ramp-up, produces the highest revenue and profit margins, and includes essential services that are non-seasonal and recession resistant.
Here are some of the types of businesses you’ll find in the home services industry:
Renovation
Maintenance & Repair
Interior & Exterior Design
Landscaping, Groundskeeping, Pool Care
Pest Control
Painting & Restoration
Cleaning & Disaster Recovery
Moving, Storage, Junk Removal
According to the International Franchise Association 2024 Economic Outlook:
In 2024, commercial and residential services are poised to reach around 81,000 establishments, reflecting a growth rate of 2%. Employment within the industry is projected to increase by a corresponding 2% to 315,000 jobs. The output in the sector is expected to grow faster than in 2023, driven by improvements in the housing market, with a growth rate of 4.6% anticipated in 2024, reaching a total of $59.8 billion.
Here are six home services franchises you should sell your vehicles to invest in.
Residential Painting
Investment Range: $113,300 - $142,000
Average Annual Revenue: $987,347 (2023 FDD, Item 19)
Our favorite brand in this space is the fastest-growing painting franchise in the nation. They’re a young and vibrant franchise focused on delivering happiness to their customers and unmatched value to their Franchisees. The system is designed for Owner Operators and Semi Absentee Investors who want to manage a thriving and colorful business from home.
The company provides an in-house appointment center, and in-house marketing and creative team. This means they take care of all scheduling, marketing, social media, SEO, web design, and content creation for their franchisees. Their comprehensive system allows franchisees to concentrate on what matters most, the customer experience and networking in their area. With this brand, you’re never alone! They believe in the power of community, which is why they offer top-notch coaching and support and connect you to their entrepreneurial network.
They aren’t looking for investors to do the painting, they’re looking for investors to build the business while contractors do the painting.
Residential & Commercial Window Treatments
Investment Range: $87,560 - $116,055
Average Annual Revenue (Open 3+ Years): $757,662 (2024 FDD, Item 19)
Average Profit Margin: 53.6%
Top Performer: $3.6 Million (2024 FDD, Item 19)
Owners with our favorite window treatment franchise enjoy high-income potential, impressive margins, and a great lifestyle selling blinds, shutters, shades and custom draperies to home and commercial customers.
Look around and you will see windows everywhere. Every home and every business has windows that needs to be covered. This $30 billion industry is largely unbranded. Here’s some of the reasons we think it’s the best opportunity you’ve never heard of:
Fragmented industry – the largest retailer has 3% market share, and the rest is mostly small, independent dealers that lack buying power, marketing sophistication or technology
Simple business requires no design experience
Regardless of the economy, windows always need to be covered
High margins, low overhead, and cash flow friendly
Extremely lucrative
This franchise allows you to own a lucrative business with no inventory, no accounts receivable, no employees (if you choose), with installation done by independent contractors.
Outdoor Living Space Design & Construction
Investment Range: $100,000 - $150,000
Average Annual Revenue: $1,843,008 (2023 FDD, Item 19)
Top Performer: $4,941,792 (2023 FDD, Item 19)
Our favorite brand is the world’s largest custom design builder of custom decks, screened porches, open porches, outdoor kitchens, fireplaces, hardscapes, and other outdoor living spaces. They’ve completed over $1 billion in projects for over 75,000 clients since 1980. The franchise provides rigorous training, a proven sales methodology, in-house drafting department, in-depth franchise support and marketing systems that enable our franchisees to sell, design, and install professional outdoor living environments with unparalleled service and attention to detail.
You do not need to have design or construction experience to own this franchise. The ideal candidate would be highly client service-oriented, obtains experience or enthusiasm regarding sales and marketing, enjoys design, is an independent thinker who is still capable of following a proven marketing and business model, has an outgoing personality, and enjoys building relationships and networking has a history of professional success and is financially qualified.
Heating and Air Conditioning
Average Investment: $135,000
Average Annual Revenue: $1,202,487 (2023 FDD, Item 19)
Top Performer: $6,873,353 (2023 FDD, Item 19)
Since 2003, our favorite brand in this space has provided a way for the current owners of HVAC companies to extend their reach and has allowed new business owners a proven way to enter the industry. Their team is focused on helping business owners receive the tools and support they need to provide the quality heating and AC repair, installation, and maintenance services that the brand is known for. The results have been incredible: they’ve helped over 100 franchisees bring the best HVAC services possible to over 375 locations, with many more available territories.
This brand is the #1 largest HVAC service provider in the United States. As an essential service, franchisees experience a more consistent demand and better work-life balance than is found within other industries. With comfort and convenience a top priority, the company offers an extensive line of products and services, including maintenance, installation, and repair, that keeps HVAC units running at peak performance year-round.
You do not have to be an experienced, licensed HVAC professional to own this franchise.
Year-Round Landscaping & Groundskeeping
Average Investment: $85,000
Average Annual Revenue (Open 3+ Years): $870,387 (2023 FDD, Item 19)
Top Performer: $3,625,741 (2023 FDD, Item 19)
Our favorite brand in this space offers a full-service landscape and design concept with a year round recurring revenue model.
This franchise provides the resources and support of a nationally respected brand and gives you the opportunity to scale your landscape business to meet your own personal, professional, and financial goals. Meanwhile, you’ll help customers enhance and maintain the beauty of their outdoor spaces.
As a franchisee you will provide commercial, residential and municipal property maintenance, landscaping and hardscaping services; snow and ice maintenance services; trash and debris removal; arboriculture services; lawn renovation; residential, commercial and municipal turf care services; and other related services and products.
Franchisees with this brand have access to resources, marketing strategies, and proven systems that business owners won’t find anywhere else. They assist with technology training, solutions for day-to-day operations, education on advancement in the industry, and more. Being part of this united collective of home service brands allows for valuable cross-promotional marketing and demographic research.
Residential & Commercial Landscape Lighting
Investment Range: $99,675 - $214,200
Average Annual Revenue (single territory): $566,026 (2024 FDD, Item 19)
Average Annual Revenue (multi-territory): $782,928 (2024 FDD, Item 19)
Top Performer (single territory): $1,883,529 (2024 FDD, Item 19)
Our favorite brand in this space is an outdoor lighting company that specializes in transforming your outdoor spaces with low-voltage architectural and landscape lighting. From outdoor lighting highlighting the architectural details of properties to garden illumination to festive patio string lights to seasonal holiday lighting, they have designed and installed over 150,000 lighting systems across North America and around the world.
The owner typically works normal business hours with primary focuses on business sales and marketing, business and financial management, Networking with builders, landscapers, landscape architects, and strategic referral business partners, client meetings and design consultations, new employee onboarding, and training, and job scheduling for technicians.
“Incredible experience. Three months in we’re remarkably close to $100k in revenue. First employee started last week. God is so good.”
~Steve (Our client who opened his landscape lighting in March, 2024)
Turo is a good starter business.
Carsharing can be a good way for aspiring entrepreneurs to learn the basics of owning and operating a business, and Turo is at the top of the list of companies to align with in the industry. I’m thankful for my experiences and all that I learned.
When your’e ready to graduate to ownership of a real business with greater control, equity, and outstanding earnings potential, franchising is the safest and most predictable path forward.
