[MindBomber]

I don't have experience working with a University First Class Painters, and have no intention of that ever changing.

I do have extensive experience working in construction, including networking, cold calling, meeting with both industry clients and homeowners, managing crews, expenses... the works.

In general, I commend you for the effort in writing the post.

A good portion of the information is not very good, however, so those who read it should take into consideration if they're seriously considering pursuing painting for a summer.

I'm sure this post will come across very harsh, but that's not my intention so don't take offense. University First Class Painters won't teach a person to run a painting (or any other construction oriented business) well, so it's to be expected that some of your information would be way off accurate.

To anyone seriously considering building a student franchise painting business, I'll give you this piece of advice:

DON'T

Painters are thought of very poorly in the industry.

On Sunday morning, an out-of-work, unemployable fool, can stop at Home Depot and spend a $500 on ladders, drop clothes, brushes, rollers, and paint. Then on Sunday afternoon paint a practice room in their house, and on Monday post an ad on Craigslist and start looking for work.

In reality, your painting skills are no greater than that fool.

Those painters are making less than $15/hour, and it's unstable, but they have no other employment options.

Students do, so get a 'normal' job, instead of trying to compete against those painters.

If you really insist on running a small painting business as a student, do it the same way the unemployable fool painters do and not through a franchise.

The franchise scheme isn't worth the overhead.

Originally Posted by samkwong

Hey guys,

Spoiler!

New kid on the block here. Wow, it's been a long time since I was 19 and running that business. I'm not going to mention which company, as they are all the same from what I've read.

I'm much older now. I'm a Chartered Accountant and I run my consulting businesses for variety of sizes of businesses in areas of accounting, tax, corporate planning, getting loans etc.

I will break down a couple main issue in case anyone is still interested in this topic or there are students considering this:

Can you make money

Yes you can. But it's very difficult.

Are there stories of success, absolutely. Are there stories of failure, yes.

Here's how you make money:
1. Assigned to a nice area and not a poor area
2. Be lucky that you sign with some really good/nice clients that are willing to help students
3. Hire some really great staff. Sounds easier than it is
4. Have a rain-less summer
5. Monitor expenses down to the penny

Here's how you won't make money
1. Assigned to a tough/poor area
2. Have really bad clients. Ones that stare at you the entire time, and also try to squeeze every penny out of you, and make do you do things that are not within the contract
3. Staff sucks
4. Rains a lot.

All the factors above are very tough to control. I was 19 when I did it. To be honest. I've worked a variety of job and thought I was pretty smart as I work full time and I have decent grades. Thought I was on the top of the world. But as a young-in, I had my flaws. And I didn't/couldn't manage the business properly. The training helps, but at the end of the day, if you don't know how to paint, you can't run a painting business.

Similar to the fact that if I don't know finance, I can't run my consulting firm right now.

The company try to pitch you that you don't have to paint yourself, you just "manage". But how do you manage and train if you can't paint yourself? How do you know where the risk and cost of a painting business is if you don't know how to paint?

Prior starting my consulting firm, I already knew where I will find clients (in fact, already got clients before even starting the business), know what my overhead cost is, know what the liabillity is, and have a plan. But the key is finding clients, and sales. And I won't be able to do that if I am not an expert in finance.

So it's similar to this painting gig, if you are not a painter, it's going to be hard. Not impossible. Just hard.

How to file sales

Everyone knows sales is everything in business. It won't be a bad gig if you can find business and charge them crazy high $. If you are in the market of getting your house painted, would you hire a bunch of students? Real estate property is a valuable asset, are you going to have faith in a bunch of students.

You know what. Some folks do. The "student" factor sells. Because they know it's tough for students.

But the more "realistic" people will say no. Because they need the house painted correctly. Keep in mind the prices the student charge is not cheap. Because in order for the student to make decent money, they have to charge more (due to higher overhead, higher royalty rates etc). Some guy that has a van and a paint brush and equipment can do it much cheaper (and higher quality) with cash deals.

You get sales in these ways:
1. your own network
2. cold call commercial business
3. cold call residential area (door to door)

Most of us don't have #1, so let's not talk about that. #2 and #3 are hard. You really have to go hard. And really have to have thick skin. It's easier for the attractive ladies, as it's hard to turn down girls. And a lot of the girls are assigned to the good areas (yep, girls do have their advantage). The top manager i remember was this really attractive tall blond young lady. I'm sure she's more than just the looks, you got to be smart to run a business. But you got the point.

Competition

Competition is huge. Keep in mind, your only selling point is "you are a student". You are not as good as the pros. You don't charge as low as the low overhead painters that do cash deals. Your quality of painting is nowhere as good as the pros that have been working for years.

In a recession, people don't have money to spend to experiment with a student. Or be generous. They still exist. But it's rare. It's a uphill battle. In business, its' all about "competitive advantage". For my consulting business, I provide CFO services. Many of the people are contractor cfo does not provide the full CFO package. They don't have as much emphasis on internal controls, I.T. controls, international tax planning etc. The CFOs simply wants to churn out financial statements like a robot. That's my difference, that's my competitive edge. And it works.

Whereas a student painter has no edge. They charge more. Their quality is lower. The only sell is "they are students". That emotional factor for people to help students. That's it. It's hard to run a business based on that.

Cost

You will need a vehicle, which I agree, was beat up after. But my car was old, so it's okay. But prepare to trash the vehicle after.

You have to use designated vendor for paint and equipment. And typically these are not the cheapest ones. This eats your margin. I'm sure the franchise get a kickback from them. It's all business, not a scam. So don't take it personally.

Having said that, as a business owner, you have to be innovative on keeping your cost low. I admit I was young back then and doesn't quite know how to do it.

The fact that they keep the expenses for you really affects you. As a CA, what I learn is that you have to have timely reports on where your business is. Knowing that once a month from their head office is not quick enough. Revenue and cost should really be assessed weekly at minimum. If you don't know where you are at, and especially if the vendor allow you to buy on company credit, cost can get out of hand quick.

Overall thoughts - financial wise

It's a tough business to make money. It's not impossible. Just really tough. They say the average sales should be 30,000. But your margin is like 15-25%. If you are looking to make money, probably easier just to get a job in the summer. You work all year around. You market in winter. Get ready in spring. then execute in summer. if you divide the hours spent with the profit margin, it's not that attractive.

People typically make money in the future years (not the first year). As the first year is an extreme learning curve

I broke even after my summer, might lost couple G overall. For a student, was a lot of money.

Overall thoughts - qualitative

There are several things that were important that I took away:
1. Think critically. Don't easily believe in sales pitches for a job, and people in general. Everyone has their own motivation. Find out what that is. That is what the CA program also taught me. Think both sides. What's in it for the painting company. What's in it for me. What are the pros of this job, and what's the cons of this job. Really think hard, ask people for advice before making a big decision. To me, whether or not to take this job is a big deal as a student.

2. Running a business is extremely tough. It was my first stunt. It totally preps me in the future

3. It will give you a great story for other job interviews in the future. Great experience, if you are okay with the risk of losing money (although there's a potential to make money as well of course)

Overall thoughts

This experience really changed my life. It shows that business owners really need to know their competitive edge, and also, the numbers have to make sense. The pay off has to be worth it for the risk. That is why I'm in the business I'm in today. Lots of clients have great ideas, but when I show them the margins and numbers, they are shocked. Or when I ask them how they are going to be different aside from their passion and energy, they really don't have an answer. I've turned their 6 page BDC business plan template into a full 25 page formal business plan, which eventually got them the loan needed.

Random story

So i finished my summer that year. and there was a potential guy that wants to take over my spot. he was asking my true thoughts. and I explained it to him, professionally and objectively. I told him to keep it between me and him. And he goes back and tell the corporate office our conversation. The owner of the corporate office got mad (of course) and gave me a lecture and tell me not to say anything further. I just told him what I said were pure facts. I told him my challenges, my financials etc. Anyways. That kid end up taking the job, and quit mid way because he said he couldn't make any money.

PM me if you have any questions.

All in all, I don't regret it, it was great/expensive lesson. It helped me down the road. The business model do allow franchisee to make money, but it's challenging. If you are a go-getter, and up for the challenge, and can take a financial hit (worse case scenario of course, because you can actually make some money), then go ahead and give it a shot!