Toilets, Termites, and Terraces: A $1.2 Trillion Opportunity

When we think of franchise businesses and other MULO (multi-location) operations, we tend to think of retail, restaurant, convenience stores, and service businesses like walk-in clinics and tax prep services. But a huge category exists called home services.

Although many of these operations do not require brick-and-mortar locations (beyond a co-working space or small office address), the industry is booming. According to Brad Stevenson Chief Development Officer of Neighborly, one of our guest speakers at Street Fight LIVE 2024, it is expected to reach $1.2 trillion worldwide by 2026.

As the below chart illustrates, Neighborly owns a wide range of businesses that homeowners and multi-location property managers need on a regular basis.

The Neighborly model is a terrific example of how a MULO operator can meet the needs of both consumers and business owners.

• Anyone who has ever lived in a home or apartment seeks at least one of the brand’s services at some point in their life. From a clogged drain to a major tree removal project, homeowners and renters are seeking local service providers who are easily accessible.
• The trade industries are filled with solopreneurs and small business owners, who may lack the time and resources to market effectively in a hyper-local trade area, especially as “near me” search and consumer reviews are our beacons in everyday life.

Neighborly has been scaling rapidly and Stevenson shared with the audience at Street Fight the fact that although home services may not be as glamorous as a new cookie flavor or the latest Wicked fashion style, the demand is timeless and the business is potentially very profitable for operators, especially when they have the resources to market effectively and to learn from others in their field.

Home services business operators stand to benefit from the $1.2T opportunity, but shortages of skilled labor have presented a challenge. More students today need to be encouraged to pursue trade careers. AI will not impact this industry in the same way as some professional roles, which may lead to long-term job opportunities for many (along with the potential to own one’s own Neighborhood-Powered franchise one day).

So, we should all learn to respect the toilet as much as the taco or turtleneck and expand our thinking about trade brands as part of the MULO infrastructure.