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Franchising is an excellent way to start a successful business, but how do we decide what industry to get into? For that matter, how do we know what are the best industries to get into right now?
In January, Franchise Canada released their list of the top franchise markets for 2013. To determine this list, they looked at the increases in category listings in the Franchise Canada Directory from 2008 to 2013, and assigned a percentage increase to each market. These five sectors topped the list.
Financial services and business consultants topped the list with a 211% increase in listings, far above any other sector. With household debt reaching record levels in Canadian households, and the cost of living steadily increasing, it’s becoming harder for families to manage their finances especially in large urban centres.
Companies like 4 Pillars Consulting and Padgett Business Services offer counselling services to get people back on track. These consultants offer payment plans, debt consolidation, and coaching to turn people into judicious spenders who don’t lean too heavily on lines of credit. As consumer debt levels continue to rise, services like these will only become more in demand.
Even during a recession people still want to look good. People still need to cut their hair, trim their nails, and maintain a professional appearance. This might be why the Canadian Franchise Directory saw a 188% uptick in listings for this franchise niche.
Within the world of salons and spas, there are specific target markets that one can apply to. In Toronto, Taylor and Colt is a new hair salon for men offering upscale service at reasonable prices in a decidedly masculine atmosphere. They opened this business in response to a demand from men who were unsatisfied with the lack of options out there. There are also salons targeted at children, such as Beaners Fun Cuts for Kids where they have coin-op rides and Playstation games to keep the kids entertained while they wait.
As the population continues to age, the amount of seniors in Canada is projected to reach 25.5% of the population by 2061 according to Human Resources and Skills Development Canada. This puts a huge strain on our health care system creating the need for more home care services for seniors. It’s been proven that people recover better at home, and most would rather spend their twilight years surrounded by their family and friends rather than in an institution.
Companies like Nurse Next Door and House Calls are taking advantage of this niche. They provide trained and compassionate caregivers to assist in the care of seniors, so the family doesn’t have to shoulder the load by themselves. Caring for one’s elders can be onerous and stressful, so hiring an outside agency can help make things easier.
Restaurants are always a solid choice for franchising and the Franchise Directory saw an uptick of 88% in this category. Whether it’s a steakhouse, pizza take-out joint, ice cream parlour, or sushi shop, there are hundreds of options out there for the enterprising restaurateur to jump on. During the recession, restaurants saw less business but they still survived. People are always going to want to eat out for special occasions at places like Joeys Restaurants.
When looking into opening a restaurant franchise, it can be a good idea to choose one which serves healthy foods such as Cultures. People today are more health conscious than ever and want to know that the food they consume is good for them, and comes from a reputable source. It’s also good to know that you’re serving a product which promotes the wellbeing of your customers, rather than making them pack on the pounds.
Working from home is a dream that many people have, but few attain. This sector scored an 83% increase in listings, and today there are numerous home-based business with low start up costs such as Debit Direct Canada or Location First Vending. Also, because they are home-based, they come with low operating costs as you don’t have to rent office space. Many of these franchises have little or no inventory, making them even more hassle-free. The best thing about this sector is that there is a home-based franchise for just about any niche. It doesn’t matter whether its pets, financial services, sales, or home improvements there is something for just about anyone.
These are the top growth industries right now, which isn’t to say you could find success in another industry. However, it can be prudent to take advantage of rising trends and get into one of these growth markets.