Franchising - Business Concepts
"There are only two things certain in life; death and taxes"
Many individuals enquiring about our franchise have differing objectives and desires as to the level of effort they wish to expend in the operation of a tax preparation office. We have individuals who want to prepare personal income taxes during the personal income tax season. We have others who are interested in operating year round and who want to prepare both personal and corporate income taxes and others who are somewhere in between.
As a result, we are offering our business opportunity in differing concepts. We support those who want to have a smaller investment in capital and effort as well as those who are more ambitious and want to grow their business.
Seasonal - Home Based
Tax preparation and accounting related activities are easily completed from a home based office. Equipping a home office with computer, printer, fax and any of the other tax preparation equipment is inexpensive and space efficient. Marketing your services, however, can be a challenge as potential customers do not usually perceive a home based income tax practice in the same light as a tax preparer who operates out of a business or retail office.
Our home based operators are required to operate at least one retail location during the personal income tax season. The ideal location would be in an enclosed mall and operated during the period February 15 to April 30. With appropriate marketing and visibility to customer traffic, revenues are generated. Sales growth from year to year is realized by reopening in the same location. The home based operator can support his customers during the remainder of the year by meeting with the client at their home or business or at your home office assuming it is a suitable business venue. Customers may also be directed to call our 1-800 number where they will receive 52 week support.
Business Office – (Full time or Part time)
A tax preparation business can be developed with the use of a business office. Profitability is impacted by the monthly rent of the office but this cost can be more than offset by higher customer volume. A non-retail location adds the additional flexibility of setting your own office hours. This can be of substantial benefit during non-personal tax season. A business office with retail exposure is ideal but the rental rate must be considered.
Opening of one or more seasonal offices in combination with a business office will generate additional revenue. These will require hiring of staff but can be easily administered in combination with your business office. During the off season, working from a home office with attendance at the business office for appointments can make for a rewarding and relaxing work schedule.
Retail Office
Many tax preparation offices rent full year space from retail operations such as enclosed or strip malls. These provide increased customer traffic during the personal tax season. Rental cost of a Class A retail location is significant and can impact profitability. Staffing too can be an issue as landlords of major retail centres require all tenants to operate during centre hours which could be seven days a week, 52 weeks a year. This staffing requirement in combination with premium rental rates makes profitability in a Class A shopping Centre a real challenge.
We do not recommend this alternative except in exceptional circumstances.