Choosing a profitable franchise When thinking...
When you are looking to buy a new TV, chances are you look at several different types, sizes and brand to find the best--and biggest--one you can buy on your budget. Looking for a Canadian franchise is similar in theory, but it calls for a far larger investment!
In a nutshell, you want to find the opportunity that is affordable for you and gives you a strong chance to succeed. With all the brands operating in Canada today, it can be tough to decide which one to go with, so here are three simple tips to help narrow down your list of candidates.
Determine the demand
The level of demand for the products or services a franchise is offering in the market you want to operate in is crucial. Even the best product can struggle in a market that has no real demand for it. On top of this, you'll also need to consider if the services or products are sustainable over the long term--or, in a few words, is it just a fad?
To determine these angles, you can ask the franchisee's rep for any market data they have and data on the products and services demand levels in general and speak to area franchisees about the demand they see personally. You can also tap into the public's feel using online research tools. Google Trends, for example, shows you the search interest over time for terms you input, such as the brand name or a name of their most popular product.
Eye the competition
Take a closer look at the local business market and any competition you may have. Online searches can help here, but it also pays to drive around the area in which you would want to open your business so you can catch any competitors who didn't pop up in your web sleuthing. Determine whether competitors are independent or franchisees and survey how busy they appear to be to get a feel for your potential business landscape and the obstacles and advantages you may have.
Look for an opportunity that speaks to your skills
The opportunities that leverage your strongest skills are likely to be the ones you'll be the most successful in. If, for example, you have operations experience, a franchise that require running a tight ship could be a good match for you.
On the opposite end, try to avoid franchises that rely on skills you don't have or don't wish to learn or sharpen. A person who isn't into sales, for example, probably will struggle with a business-to-business franchise because that requires a lot of in-person pitching.