Hiring The Right People
Many franchises - such as food, hospitality and...
As we approach a new year, many Canadians will be looking for ways to maximize their income. For some, franchising will offer the perfect opportunity to develop a business that supplements their existing income and provides them with the opportunity to pursue their interests. However, some of these prospective franchisees may be concerned about the ongoing cost of non-discretionary goods and services and need to know which franchise sectors represent the lowest risk.
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Franchisee risk appetite
A prospective franchisee's risk appetite will differ based on their age, background, financial stability and a raft of other considerations. It is important to remember that even though becoming a franchisee usually offers a greater likelihood of success than setting up an independent business in the same sector, it is not guaranteed.
Prospective franchisees must fully assess their own lifestyle, experiences, business acumen and financial position prior to pursuing any business interest. For those who determine that they can afford to become franchisees and that they have the time, interest and commitment that is necessary to invest in the business, the sectors described below are worthy of consideration.
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Lowest-risk franchise sectors
These sectors have been identified as low risk because they deliver essential goods and services that are typically not affected by the rising cost of living. They may not deliver the greatest return on investment or have an impressive resale value, so prospective franchisees must run the figures themselves to ensure that their preferred business venture is viable.
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Healthcare: There are many franchises operating within this sector, ranging from those selling healthy food, drinks and supplements to elderly care providers, fitness and leisure providers, and beauty salons.
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Property maintenance: Franchises in this sector range from domestic and commercial cleaning services to the sale of property maintenance products, specialist maintenance services and groundskeeping. Plumbers and electricians may be surprised by the vast array of franchises operating in their sectors.
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Education and childcare: Qualified educators can deliver online tutoring from the comfort of their own homes, while those with specialist skills may veer toward supporting children and their families in achieving specific goals. Many Canadian nurseries are operated by franchisees, along with those delivering wraparound care and extra-curricular activities.
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With such a wide variety of franchise sectors available, it is reasonably straightforward to identify the one that satisfies your business aspirations and risk appetite. From there, you must select the business that best aligns with your budget, personal experience, background and career goals. By fully considering all aspects of business ownership, you will be well placed to make an informed decision about your future as a franchisee.
