A Window Cleaning Franchise Owner Talks

Peter Cogan managed to balance his independence with the support of a franchise as a Window Genie franchisee.

Franchise Players: I'm On My Own, But Not Alone - After losing his 15-year-old business to the recession, Peter Cogan wanted to continue on as an entrepreneur. However, while he still wanted to be his own boss, he was ready for a bit more support. Franchising allowed him to be in business for himself but never by himself. Here's how he's managed to balance his independence with the support of a franchise as a Window Genie franchisee.

• Name: Peter Cogan
• Franchise owned: Window Genie, Lake Norman/Charlotte, N.C.

How long have you owned the franchise?
Three years

Why franchising?
Franchising allowed me to be in business for myself but never by myself. I have always worked for myself and I wanted to continue the freedom to make my own schedule, be my own boss, be responsible for the decisions that allow me to be the most successful I can be. Being a little bit older and having four children now I also wanted to have a support system with my best interests in mind and surround myself with people that had experience doing exactly what I aimed to do in this business.
The corporate office has been amazing. They have been and continue to be there with all their support in marketing, software, operations, etc. I do not think I would have had the success I have had so far without them. People who start a business from the ground up take too much onto their plate. Franchises have proven systems that are being practiced by others, always someone to turn to like a fellow franchisee and corporate staff, a strong website, branding, etc.

What were you doing before you became a franchise owner?
I was self-employed working mostly in sales. I had a consulting business that helped companies reduce operating expenses. We worked with companies that grossed $10-100 million in gross sales and helped reduce any operating expense and then we split the savings 50/50 with the company.

Why did you choose this particular franchise?
My college fraternity brother David Flax had bought his franchise about a year before me. I spoke to him about how he felt about it and where he thought it could go. We always stayed in touch and kept up with what each other were doing. I wanted to get involved with a franchise and he seemed very happy with his decision.
I loved that the franchise had multiple income streams. This was a big factor for me as well. I didn’t want the business to hinge on one service, but on multiple services. I have a big family and it’s nice being able to see them more than you would if you worked in corporate America or if you worked a retail/food franchise with a strict schedule. 
It’s nice to build relationships with repeat customers who use our service in our community and it’s nice to provide services that improve the homes in my community. When we do a great job it is nice to hear from the community how well we are doing. I take a lot of pride in that.  I was also happy that Window Genie asks us to give back to our community with our Windows 4 Wishes program. I started a program called "Cleaning the Homes of Those Who Protect Ours." We give a free service to any current or past veteran of the armed services that has served in the military. We try to do this once a month and I have found it extremely rewarding.

How much would you estimate you spent before you were officially open for business?
I am a little different than most of our franchisees because I purchased an existing franchise. This obviously changes the dynamics of things. My business came with the equipment, van, and supplies.
I really would not want to disclose the cost of the franchise, but I can say that to get started and buying the equipment, a vehicle, advertising, gas, etc. it probably takes about $20,000-$30,000. Advertising-5,000-6,000, Auto (monthly payment)-$450, Ladders, Pressure Washer, Concrete Cleaning machine-$8,000-$10,000, Window Cleaning Supplies/Tools- $3,000, Window Film stock/Tools- $2,000-$3,000, Insurance/Workers Comp- $2,000-$4,000. There is probably more but those are the big ones. I would say that anyone wanting to get into this business or any business should have at least $100,000 of capital so they don’t stretch themselves and they can do the best job once they start.

Where did you get most of your advice/do most of your research?
Most, if not all, came from David Flax. I owe him a great deal for all of the time he gives me and has given me. I was able to avoid a lot of pitfalls because of all our talks and learning from his experience. I could not be where I am today without him and his advice. I could not put a price tag on it.
Rik Nonelle, Window Genie’s franchisor is great and was extremely helpful and patient with me and got me the answers I needed. He was a great advisor to me when I was doing my research. I also spoke with my wife and friends and bounced ideas and thoughts off of them before I made my decision.

What were the most unexpected challenges of opening your franchise?
I have to say there were not too may unexpected challenges and again this goes back to being prepared by David, Rik, and the previous owner of the territory I bought. They really had me ready to go from day one.
If I had challenges it was working with employees. I used to work by myself and did not have to worry about employees. So making sure those relationships stayed strong was key and took time to adjust. My techs are crucial to this business and my success and you have to find the line between boss and friend, and that can be challenging at times.
Also, since I am dealing with residential customers now, the customer service aspect can be tricky. I am huge on customer service and want all of my customers to be completely satisfied and want to have us back in the future so we work extra hard to make sure that happens.

What advice do you have for individuals who want to own their own franchise?
I would say talking to a franchise coach and looking into purchasing an existing business if possible. It does help when getting started. I would also go to any franchise expos-- that helped me to start looking and getting ideas. Making sure you really do your homework and do all of the due diligence needed to gather info. Do not settle for just anything, make sure you can see yourself doing this and being successful at it. Ask, ask, and ask questions, do not hold any questions back. Make sure you ask everything and anything that comes up and ask different sources. 
I had a ton of info to use and I also just felt in my gut I could do this and going with your gut is sometimes the best move when making a huge decision such as this. But the biggest thing is due diligence. Talk to existing franchisees like I did and the franchisor, which in my case is Rik, is he/she someone you would like to be in business with for 20 years?  For me that was absolutely yes.

What’s next for you and your business?
We are going to be expanding in the next four weeks. I will be adding a new truck and two more techs in April. We will have three trucks on the road not including mine, six full-time techs and two office employees. I am hoping this will be an even better year than last and we really take off. We will also continue our 'Windows 4 Wishes' program and cleaning homes of more veterans than last year, as well as giving to different charities including Sloan Kettering in honor of my father who passed away from cancer.
Related: Franchise Players: Before You Buy a Franchise, Talk to Former Employees

Recession Creates More Cleaning Franchises

There are more businesses than ever franchising their concepts from doggie daycare to window cleaning.

Franchising Sizzles In Wake Of Downturn (By David Winzelberg) - Apart from layoffs, the downsizing of corporate America in the last few years has created another byproduct: entrepreneurs.

Thousands of out-of-work executives have chosen to become business owners themselves. Many have gone the franchise route, buying into pre-determined business models so they don’t have to reinvent the wheel. This year alone, new and existing franchise units will create or maintain 797,700 jobs and generate $106 billion of annual economic output to the American economy, according to the International Franchise Association.

Harold Kestenbaum, a noted franchising attorney at New York law firm Gordon & Rees, with more than 500 franchise deals to his credit, has seen a big increase in the number of people looking to own a franchise in the last few years. In fact, the recession helped franchise companies. “The proliferation of very qualified, downsized corporate executives has been terrific,” he said. “It increases the pool of prospective franchisees.”

While the corporate world has been shrinking, franchising has enjoyed steady growth, with brand-licensed businesses now topping 750,000 U.S. units, according to the International Franchise Association Educational Foundation. Expected annual U.S. sales this year: $472 billion, or almost 3.5 percent of the nation’s gross domestic product. While most people still think fast food when they hear the word “franchise,” there are now more businesses than ever franchising their concepts – everything from doggie daycare to window cleaning. There’s even a franchise that sells other franchises.

Business brokers Ken Stein and Stuart Levenberg, of New York’s Kensington Company, say would-be franchisees should try to think outside the bun. That’s because for most just starting out, a fast-food franchise is financially out of reach and requires previous restaurant experience. Cleaning franchises have been especially popular lately. In fact, three of the top five fastest-growing franchises in America in 2012 were commercial cleaning services, according to Entrepreneur.com.

In fact, three of the top five fastest-growing franchises in America in 2012 were commercial cleaning services.

The all-in costs to own a franchise vary as much as the concepts themselves. Franchises for some janitorial concepts start as low as $5,000 and climb to as much as $5 million for the rights to develop a Choice Hotel. And there’s everything from embroidery services to weight-loss clinics in between.

Franchises offer a structured environment that may not work for everyone, especially those who march to the beat of a different drummer. “You have to conform and do what they tell you to do,” Kestenbaum said. “Some people just can’t do that. Entrepreneurs who can’t follow the format shouldn’t buy a franchise.”

It’s not that creative people can’t still fit within the confines of a franchise and offer suggestions to improve the business within its boundaries. “But don’t go in thinking you’re going to do things differently,” Kestenbaum cautions. For that reason, Kestenbaum said ex-military personnel usually make excellent franchise owners since they’re used to following rigid rules and regulations. Franchisors usually charge from 5 to 8 percent of each franchise’s revenue for royalties and advertising. While non-franchised businesses don’t have those added fees, they also don’t get the support, training, or benefits of having a nationally recognized brand.

And when it comes to franchises with a proven track record of success, there’s also a fairly predictable roadmap for new franchisees to follow. Franchisors often assist their franchisees in finding real estate, securing financing, buying supplies and equipment, even hiring employees. “All these things that franchises do you might struggle with on your own,” Kestenbaum said. “It’s a business in a box.” Non-franchised business owners may have more flexibility, but unless they hire a business consultant, they’re basically blazing their own trail. Shopping for a franchise has gotten easier: You can even apply for one over the Internet or visit one of the major industry trade shows. One of the largest, the International Franchise Expo in New York, attracted more than 12,000 potential franchisees who explored some 300 business concepts last summer.

26 Books About Success That Every Entrepreneur Should Read: We go through dozens of books each year here at Business Insider's War Room. Many aren't worth a second glance, but there are some every business owner should read. So, we've put together a list of the best books for entrepreneurs — either from our own recommendations or touted by big-time VCs, CEOs and startup founders.

"The Four Steps To The Epiphany," by Steve Blank - Blank's book prompted the whole "Lean Startup" movement, which says that you need to get traction in the market as quickly as possible, instead of developing a final version of a product before releasing it.

"How to Change the World," by David Bornstein - Bornstein profiles a variety of "social" entrepreneurs in his book. The case studies serve to show that you can succeed if you have a hunger to actively change the world, and that idealism can be an infinitely strong motivator.

"From Resource Allocation To Strategy," by Joseph Bower - Bower offers a comprehensive guide to how organizations work. Drawing on decades of research from the top business schools, he explains how to develop an effective corporate strategy, and how to prevent breakdowns in the system. Clay Christensen recommended it to us as "a classic book about how the world works."

"Losing My Virginity: How I Survived, Had Fun, And Made A Fortune Doing Business My Way," by Richard Branson - One of the world's most iconic billionaires shares how he built his Virgin empire with the philosophy "Oh, screw it, let's do it." Branson's autobiography shows how having the confidence to fail is one of the surest ways to success.

"How To Win Friends And Influence People," by Dale Carnegie - This is a class self-help book, but don't let that scare you away. It's essential to understanding the fundamentals of how to get people to like you, make good conversation, and win people over to your way of thinking — in other words, what you need to succeed in business.

"The Zigzag Principle," by Rich Christiansen - Christiansen's book tells you to ignore all the voices that tell you to charge full steam ahead toward your goals. Instead, his perspective is that you have to zigzag around obstacles, but still maintain your course so that you reach your destination.

"The Innovator's Dilemma," by Clayton Christensen - Steve Jobs was "deeply influenced" by Clay Christensen's classic, according to his biographer. The HBS professor introduced Corporate America to the concept of disruptive innovation—or the idea of how new, low-end products can eventually completely take over a market. It proved to be extremely prescient—just look at companies like Netflix.

"Good to Great," by Jim Collins - Collins followed up his acclaimed "Built to Last" with this book. It identifies top-performing companies and the traits of the CEOs that lead them. For instance, Level 5 leaders have personal humility and an unwavering resolve to accomplish the tasks at hand. They also create a culture of honesty.

"The Startup Game," by William H. Draper - Draper dives deep into the history of venture capital and the culture in Silicon Valley. The book addresses how VCs evaluate both ideas and the entrepreneurs who thought of them.

"Innovation and Entrepreneurship," by Peter Drucker - Drucker was one of the top management thinkers of his generation, and his insights about innovation in this book are invaluable. He breaks down the key elements involved in innovation and uses real world examples to show how they were executed. Though first published back in the 1980s, Drucker's ideas are still quite relevant today.

"The Ascent Of Money: A Financial History Of The World," by Niall Ferguson - This is Coke CEO Muhtar Kent's favorite book, which chronicles the evolution of the financial system. It's essential for entrepreneurs to understand the macro economic elements that will ultimately determine if their business succeeds or fails.

"Never Eat Alone," by Keith Ferrazzi - If you don't believe it already, this book will convince you that networking is the key to success. Ferrazzi shares how some of the most powerful people in the world—like Bill Clinton—mastered the art of networking, and made it to the top.

"The World Is Flat," by Thomas Friedman - Another essential macro-economic guide to understanding globalization. The New York Times columnist illustrates how companies and individuals need to react to the increasingly flat world and new ways of doing business. It's also one of JPMorgan CEO Jamie Dimon's favorite books.

"The E-Myth Revisited," by Michael E. Gerber - Gerber provides an approach for small businesses to survive where so many others fail. It's about turning a business into a well-tuned system that doesn't require you to work yourself into the ground every week.

"Outliers," by Malcolm Gladwell - Gladwell's third bestseller explains how hard work and luck equally play into success. The titans of Silicon Valley, for example, were all born within a few years of one another, in very specific circumstances, which allowed them to create disruptive technologies. But luck isn't anything without hard work: Gladwell also popularized the idea that it takes 10,000 hours of practice to create a genius.

"All Marketers Are Liars," by Seth Godin - Godin believes that the key to marketing is telling a story, and this book has become his manifesto on the subject. When marketers tell a good story, consumers will repeat the story, and they eventually they will accept that story as a reality. But without being authentic, you'll never get to that point.

"The 48 Laws of Power," by Robert Greene - Greene wrote the book while navigating the highly political Hollywood film industry. He told us in a recent interview that he was disturbed by the psychological gamesmanship he encountered, so he read up on the history of power—especially Machiavelli—and created this comprehensive guide to understanding the dark side to human nature.

"Delivering Happiness," by Tony Hsieh - Hsieh, CEO of Zappos, created a rabid consumer base for his brand by molding his company's corporate culture. His book is all about Zappos, but there are plenty of applicable ideas that can help any business looking to breed loyal customers.

"Steal Like an Artist," by Austin Kleon - Kleon isn't a prototypical business guru—he's an artist who has some fantastic insights about creativity. The book is a short, easy, very personal read that's packed with practical tips to help kickstart creativity.

"Founders at Work," by Jessica Livingston - Livingston provides a look into the early days of software startups. It's down-to-earth and goes into the grainy details of what it was like to be in the trenches of the early '80s tech boom to the Web 2.0 days. Plus, the book picks the brains of some very experienced entrepreneurs for advice.

"How Successful People Think," by John Maxwell - Successful people are not necessarily smarter than the rest—they just know how to think differently. Leadership guru Maxwell outlines the keys to innovative and disciplined thinking, for example, by offering tips on how to use the 80/20 rule to allocate your energy.

"The Smartest Guys In The Room: The Amazing Rise And Scandalous Fall Of Enron," by Bethany McLean and Peter Elkind  - Warren Buffett names the book as one of his favorites. It's a reminder to all entrepreneurs of the power and importance of ethics, since spectacular downfalls are years—and countless small decisions—in the making.

"Zen and the Art of Motorcycle Maintenance," by Robert Pirsig - The classic is filled with complex philosophical discussions, but at its heart it's about problem-solving and the metaphysics of quality. It's a guide to self-reliance and reasoning that every entrepreneur should take the time to read.

"The Lean Startup," by Eric Ries - Ries' book provides an approach to dealing with uncertainty, which is integral to the success of a new company. It's often touted by VCs and entrepreneurs as a must-read roadmap for innovation.

"Start With Why," by Simon Sinek - Sinek's book revolves around one simple idea: figuring out what your company's long-term vision is. Why does your organization exist, and why should customers care about it? By doing this, all your other organizational decisions will become much easier.

Now check out CEOs' favorite books.