Internet & Computer Franchise Trends

Meeting the Demand

By AMY COVINGTON

In today's marketplace, technology is essential for companies to stay ahead of the competition. The use of technology has long spurned earning potential for almost all business sectors. Internet advertising and the ability to offer services directly to consumers from Web portals have boosted sales. Technology is constantly evolving and with decision makers still uneasy about the stability of the rebounding economy, in-house technology departments are running on skeleton crews or none at all. Still, the need exists to maintain equipment and software, and design and update Web sites.

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Technology franchises are meeting the demand for outsourced IT staff, performing functions such as computer and software maintenance and repair, consulting, graphic design and Internet marketing/Web hosting and Web site promotion. With the cost of inventory upkeep and real estate costs soaring, the idea of buying into a franchise with a lower start up fee and lower overhead is appealing to many. Regular businesses also are looking to scale back on operating costs, turning to outsourcing solutions, providing a strong market for technology-oriented franchises.

"The demand for technology services is increasing," said Linda Burzynski, CEO of CM IT Solutions, an Austin-based national franchise that helps small firms keep their computer systems up and running, "especially among Small and Medium size businesses and more of these businesses are looking for an affordable way to outsource these needs on a local basis. This demand in the market fuels opportunity for a system nationwide and eventually, worldwide to meet these needs. Franchising is about putting together a reliable business format system and this fits very well in providing outsourced IT Solutions for this huge and growing market."

CM IT Solutions, formerly known as Computer Moms, was poised to take advantage of its market position. "We shifted our focus from the residential customer to the business client," Burzynski said. Their plan worked. Today, CM IT claims to be the largest and fastest-growing of its kind, with company revenues up 120% in 2003.

So You're Not a Techie...

Most business-minded people are computer literate enough to navigate the Internet, send e-mail and maybe set up an Excel spreadsheet or create a PowerPoint presentation, but how does one operate an technology-oriented business without specific IT training?

"The role of most [technology] franchise owners is not punching computer keys," said George Knauf, FranChoice consultant and Netspace franchise owner. "If you own a sandwich shop, for example, you are not making sandwiches." When Knauf found out about Net Space, he was so impressed that he bought in, even though he did not have a technology background. Even without the technology know-how, his business was profitable in two or three months. According to Knauf, not be a technician allowed him the opportunity to build his business, instead of sitting in front of a computer all day. Many technology franchise owners are, however, technicians. "The challenge," Knauf said, "is that they (technicians) need to keep in mind the role of an owner, not a technician. You have to focus on the bigger picture. If you provide technology services locally, you will have to get others to step in to do that for you."

NEXT: A Spotlight on Computer & Internet Franchises

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