Do Licenses Generate Long Term Value?

Investing in a business is a big commitment. Prospective buyers need to be sure that their new venture will accumulate value – beyond just the day-to-day earnings and yearly dividends. This is especially true in the construction industry, where it can be difficult to build a solid, lasting reputation with so many other competitors already in the market.

Entrepreneurship is sometimes hailed for offering owners the most bang for their buck but, in actuality, starting your own business from scratch can be incredibly risky – especially in a volatile economy.

For strong, business-savvy building professionals, buying into a licensee network offers a more secure investment option in the long run. Being part of a national brand helps ensure consistent and quality leads, right from day one. When it comes time to sell, the backing of a reputable brand also means accumulating more value and higher capitals.

It’s important to realise that not every licensee or franchisee system operates in the same way. If you’re curious about what the KiwiSpan license network could offer you and your career, here is more about the kind of financial benefits you can expect.

Steady revenue streams right from the start

KiwiSpan is a nationally reputable brand, with a proven history of success in the New Zealand shed building industry. What that means is that even new or transitioning regions can quickly source great leads and ongoing clients.

Accumulating revenue early in the game is incredibly important for building wealth in the long term. What the KiwiSpan brand offers is a chance to hit the ground running with a new business – rather than spending years just scraping by while establishing an independent name from scratch.

While making this kind of transition could pose significant challenges if starting a brand new business, working within KiwiSpan offers new licensees a wide network of experts and peers.

As Jill and Darryn Astill from KiwiSpan Tauranga can attest after their first year as licensees, “The support from head office is enormous. If you were going in blind to this business, it would be very difficult – but the entire network here is amazing.”

Ultimately, this support helps new licensees learn quickly, take advantage of incoming leads with confidence, and start generating revenue earlier.

Increases in value over time

Investing in a new venture can be an intimidating move, especially in today’s uncertain economy. Reducing risk, ensuring capital gain, and putting your dollar where it will go the farthest have never been more important.

Buying into a reputable brand like KiwiSpan, with the backing of Donovan Group, offers prospective buyers a secure route towards long term growth in value. Previous KiwiSpan licensees have gone on to sell their regional license at significant gains – a result of their efforts within their region and the ongoing expansion and development of the KiwiSpan name.

Having established success, ongoing sales growth, and proven systems and processes that make working in the network enjoyable and efficient have all contributed to the reputation of KiwiSpan today.

Security without compromising freedom

KiwiSpan’s network is comprised of talented and motivated licensees operating from Southland to Northland. Through years of refining our practice and incorporating feedback, we are so proud to see our license owners flourish in both their business and their day-to-day operations.

We believe that a huge part of that success is due to the high level of independence, flexibility and respect that we entrust with each license. While there are obvious expectations around branding, service quality, and consistent opening hours, nearly all of the operational decisions are up to regional owners. From what kind of projects they choose, to how many staff they want, to when they take their holidays, KiwiSpan licensees have complete freedom over how they work.

Enjoying the backbone of being part of a secure enterprise combined with the day-to-day freedom of running a business is what sets KiwiSpan apart. It might also be why we see so many licensees stay with the network for 18 or more years!

If you are looking for a low-risk and wealth-building asset for your next construction venture, get in touch with our team to learn more about being a KiwiSpan licensee.

There are multiple regions up for sale right now – and they could just be the opportunity you’ve been looking for.