April 15 marks the end of tax season. For some tax prep franchisees, the question is what is next?
With tax season extending January through April, it’s a busy time for businesses, individuals and the IRS processing center.
While nothing is guaranteed but death and taxes, tax prep service franchises do get a break when the season dies down. Diversifying your income by supplementing a tax prep franchise with a seasonal business creates a unique cycle of revenue opportunity not available to traditional businesses. This can be done by leveraging operational costs, customer base and employee count.
Liberty Tax franchisee Craig Comer has enjoyed the perks of business ownership with five tax prep service locations and a Mosquito Joe business in Southeast Michigan. Mosquito Joe, a mosquito control treatment franchise, operates in a high-gross margin industry and offered Comer a business venture to expand his investment portfolio with an in-demand business that can be run from home or office - an ideal situation for those with existing alternative ventures.
Additionally, Comer has been able to retain his employees; his office manager for Liberty Tax became his office manager for Mosquito Joe while his top tax preparer is now his technician. Meanwhile, his top technicians have signed up to become certified tax preparers for this upcoming tax season.
Mosquito Joe has seen a trend in system-wide seasonal tax service franchisees supplementing the rest of their fiscal year with the outdoor brand. Chad Armstrong opened his Mosquito Joe territory in March of this year to service the Tyler and Longview, Texas communities. A strong advocate of self-employment, Armstrong has opened nine Liberty Tax franchise locations over the last nine years. By joining Mosquito Joe, he is able to keep his costs down and add revenue month-over-month.
“I was looking for ways to keep my employees working all year-round. Tax is a seasonal business and I wanted to provide them with a full-time job, and mosquito season happens to occur just outside of the tax business period,” Armstrong said.
By supplementing their tax prep business with Mosquito Joe, Comer and Armstrong have also provided themselves with time to budget for the next season and plan accordingly for the remainder of the fiscal year.
"We’ve seen a high rate of success in the system with tax franchisees due to the seasonal nature of each business,” said Kevin Wilson, CEO of Mosquito Joe. “Our franchisees have been able to maintain a constant revenue stream year-round with a similar amount of employees in a smaller franchise operation."