For whatever type of industry that exists, there’s literally a franchise out there for that industry. Don’t believe me? If you do a search on Google about ‘strange franchises’, you’ll find some franchises named Texas Lice Squad, 1-800-Puke-Off, Doody Calls, Bully Busters, The Eraser Store, Offline Dating Franchises, Mr. Snowman and so on. Yes, these are REAL franchises.
Now that you know you can find a franchise in every industry imaginable, it’s important to then take a look at a 50,000 ft level and see what industries are right for you and poised for growth. This article will identify 4 factors to consider when buying a franchise.
1. Understand what you want – It’s absolutely essential that you know what your goals are. If your main objective is to spend more time with your family during nights and weekends, buying a franchise in the restaurant industry makes no sense whatsoever. Those are the peak times. If you want to be able to run your business from anywhere in the world (like Bora Bora for instance), don’t buy a franchise the requires you to be physically present in order for the business to run.
2. Be smart about your decision – It’s wise to find a franchise in an industry that you’re absolutely passionate about, which is what I would recommend. If you’re anything like me, you’re probably more productive when you’re happier with what you’re doing. Don’t you agree that there’s something magical with being happy in your work? The bottom line is it’s important to start off finding a few franchises that align with your goals and values in an industry that you enjoy.
3. Analyze the industry you’re considering – Now if the industry you’re considering is stagnant or mature, walk away and move onto another industry. You’re looking for an industry that’s in a position of growth and stability. Take a look at the fastest growing companies today like Facebook, Apple and Google. At the time of this writing, Facebook has just been valued at 65 Billion (with a B) and the company just turned seven years old. Google has been around a little over a decade yet we would all be lost if we didn’t have Google in our lives.
4. Analyze the top franchises in an industry – Identify the top 10 franchises in the industry you’re considering and find out if they are expanding or if they are stagnant. Go ahead and research their earnings to see if they’re profitable if they happen to be public companies. Make sure you can tell if their growth is sub-par or exponential. Don’t be scared if there’s a lot of competition. In fact, you should welcome competition because healthy competition leads to innovation.
Franchising is known to be among the available options that businessmen and entrepreneurs can use as business opportunities without having to go through the usual motions of having to brainstorm and hypothesize on studies that most business tycoons would initially make. Franchising can be seen today in local food chain stores like McDonald’s, Burger King and Subway. They are practically seen in all countries of the world.
Mixed Origins of Franchising
Franchising does not really have a clear trace of its background. There has been various information as to where the franchising business originated. These include countries like China, England, and Europe and of course the United States. It is even traced as far as the Middle Ages where the business opportunity issues back then was more on the lack of transportation for the goods to be transferred from one place to another. Other considered franchising as well as a means of establishing stands, vendors and a better means of being able to offer goods towards customers in other places within the coverage area.
Franchising at a Glance
Franchising is not a new term for defining business opportunities. It extends as far as home business opportunities for people who would want to be their own boss and hold their own business hours. Franchises would usually depend on the location to which franchisees would want them to be located, ideally in populated and commercialized areas for maximum exposure. Depending on the product or service to which the franchise caters, people can even do business from their own footsteps at home. This way the expenses to be incurred such as rent or warehouse allocation expense can be avoided, an expense that is certainly something tough on the budget allocation constraints of franchise owners.
Think Big but Start Small
A franchising business does not have to start big. Just like any ordinary business, it can start from the simplest and smallest business. Like most business endeavors, as long as they are managed properly, business can grow at an instant at any time. Franchises are not different from conceptualized businesses and the varying factor would be the people who would run it and how they would view such a business at a glance.
Placement and Scope of Target Market
Placement of franchise establishments, just like any other product that most people would be interested in today would have to analyze and survey the market class to which they would want to serve. It is not merely a place and operate venture. It requires gathering strategies and putting minds into action, the usual backbone towards success in business ventures.
There will always be issues concerning the target market and identifying what product or service to serve. This has always been the issue that makes businesses different from others and unless it is properly defined, a franchise or business will falter eventually if franchising business owners are not careful.