Home Is Where the Money Is And improving the home is where today's franchises are headed.

Forget about exotic vacations and fast cars; today'sconsumers are interested in putting their money where they spendthe most time: their homes. Tired of living with the same oldkitchen cabinets, worn-out drapes and boring landscapes, homeownersare redecorating, remodeling and replacing at record rates.

According to the Home Improvement Research Institute,home-improvement product sales hit $158.9 billion in 1999, a 7.3percent increase over 1998. And the institute predicts a growthrate of 6.3 percent this year.

While do-it-yourself projects are still popular among certainsegments of the population, there's a growing trend amongconsumers to pull out their wallets and seek assistance fromhome-improvement experts. That means more profitablehome-improvement franchise opportunities for entrepreneurs.

"People are more willing than ever before to spend money ontheir homes," says Gerald Baldner, president of Kitchen SolversInc., a kitchen- and bath-remodeling company that has 110franchises in 31 states. In 1999, the franchise earned $11 millionin sales.

"In the past five years, we've seen a dramatic increasein kitchen and bath remodels," says Baldner. "The growthis due in part to a good economy and an increase in discretionaryincome, but it's also related to the fact that nowadays peoplefeel freer to spend money on their homes. Years ago, you bought ahouse and lived with it. Today, homeowners ask, 'How can wemake it better?'"

The demographic market fueling this home-improvement boom?Generally, married couples in their late 30s or older who havelived in their current home for at least five years and earn annualincomes of $40,000 or more, says Lori Marshall, owner and presidentof Decor-At-Your-Door International, a franchise specializing inwindow coverings, flooring and wallpapering. Marshall started as afranchisee with Decor-At-Your-Door in 1998, and did so well, shebought the company in early 2000.

"Many of our clients tell us that, rather than buying a newhome, it's cheaper and easier for them to fix up what theyhave," she says. "They like their home, neighbors andschool system, and they don't want to leave. By replacingcarpeting or putting up window treatments, we can provide them withan effective way to spruce up their homes, and they're almostalways delighted."

A Home Landscape Franchise

Thanks to the public's interest in updating their homes,Marshall has found building her business amazingly easy."Customers don't want to do it themselves, so when theyfind out about me, they're really happy," saysMarshall.

Marshall's clients also appreciate her affordable rates andaccess to new products. "We stay current on the latest trends,and we don't charge an hourly rate for our services," shesays. "We're also able to get group discounts on thelatest merchandise and pass those savings on to theclients."

The interior isn't the only home location to benefit fromaffordable, attainable technology, says Tim Hanauer, owner ofEarthGraphics, a mobile service that provides digital images ofproposed landscapes from an on-site van. "Six years ago, wedidn't have a digital-imaging system with the ability to bemobile," says Hanauer. "The landscape industry'straditional lead-time for producing plans is about four weeks. Withthis mobile digital technology, we've cut that to one day, andcustomers are really responding."

Since Hanauer started the company in late 1994, Earth Graphicshas seen a steady increase in business. Today, it has three vansand one franchise unit that generate $222,000 annually in designfees, and they are geared to open more franchises. Hanauer expectsthe company to create 925 residential landscape designs thisyear.

Like many in the home-improvement industry, Hanauer has foundtoday's consumers eager to fix up their homes. "A lot ofpeople want a landscape they can enjoy," he says. "Withtelecommuting and working from home becoming more popular, peoplewant inviting landscapes."

During his 14 years in the landscape industry, Hanauer has seenjob prices rise considerably. "When I started in the business,clients commonly spent $2,000 to $5,000 on landscaping. Nowthey're willing to invest $15,000 to $20,000," hesays.

With the increase in expense has come a renewed interest increative landscaping. "We're seeing a lot of naturalisticand authentic items," he says, "such as realcobblestones, landscape boulders and waterfalls."

A Kitchen Improvement Franchise

More than any other area of the home, kitchens succumb tooutdated styles and wear more quickly than other rooms, which makeskitchen improvement a hot area. That's old news to Carrie andJohn Bordenkircher, who haven't been without work since theyopened their Dayton, Ohio, Kitchen Solvers franchise in 1997.

"It's been so busy, we haven't had a problemfinding work. Our biggest challenge is keeping it," saysCarrie, who left a job as a full-time CPA to pursue owning abusiness.

For a little less than $35,000, the Bordenkirchers bought aKitchen Solver franchise. In 1999, their gross sales were $225,000,a figure they surpassed in May 2000.

The Bordenkirchers' niche is in the area of cabinetrefacing, which has seen changes in recent years. "People arebecoming more aware of the refacing process and are finding that,thanks to new products on the market, you can get the look ofcustom cabinetry for significantly less money," says Carrie."The process has become upscale-with real wood and newdesigns, and it's usually half the cost ofreplacement."

Trends in kitchens are changing faster than ever before, andit's the Bordenkirchers' job to keep up with the times andoffer clients updated styles. "People see pictures andarticles about new stain colors, door designs, color combinationsand accessories," she says. "Kitchens have also becomeincreasingly user-friendly. When customers see a new look, weencourage them to show us, and we provide it."

Homes aren't anything new-the difference is people arestaying in them longer. Whatever franchise you choose in thehome-improvement industry, providing customers with attractive,affordable, up-to-date ideas and options can lead to a lot ofbusiness in this lucrative market.

Julie Bawden Davis is an Orange, California, writer whospecializes in small and homebased business issues. She oftencontributes to the Los Angeles Times, The San FranciscoChronicle and Entrepreneur's Start-Upsmagazine.