Is Your Passion Your Most Profitable Business Option?
Starting your new business is a great step in career freedom. On your path to becoming a franchisee, there are many steps that will get you where you want to be, but there's no denying that this is one of the most crucial. After all, without having the business itself, there's nothing to own. An entrepreneur must first have something to manage and run, which is where you come in.
As a budding business owner, you will start working toward this goal early on. Researching brands, looking into business models, and ultimately, deciding what type of business you will have and how you can make it a reality. This initial process will set you up for success as a franchisee and give you peace of mind that you sought the right brand and the right industry. Don't skimp on reading into different options. Take a look at various industries and find the one that best suits you and your needs.
How to Find the Best Business Model for Your Franchise Opportunity
Start by looking into concepts that interest you. You can look into service brands, those that sell retail, food, entertainment, and more. Before making an informed decision, it's best to immerse yourself in all that exists so you can find the best possible franchise fit. Read about different brands and start looking at all that they have to offer. You can utilize our search feature to find hundreds of proven, yet little-known companies that make for an ideal franchise.
Through this process, you want to determine what works best for you as a person. (You the business owner will have a say later on.) What do you like to do? What are your passions? Consider these personal piques as a way to latch onto potential models and make them your focus.
Now it's time to dive deeper into the mix. Look at business models. How will your franchise make money? What's the draw? Are there multiple streams? Is your concept sustainable in times of economic change? What about your particular market? Just become a concept worked in a big city doesn't mean it will work in a rural community, and vice versa. Look at your demographic and compare how a concept will work for your upcoming customers.
Pairing Passion vs. Business as a Franchisee
Now it's time to make some hard choices. Look at your favorite franchise industries, and look at how they'll do financially. Will they bring you money? Is there a need? Will you have to spend time educating the consumer on what you do and marketing your services? This, of course, isn't a deal breaker, but it might not be what you signed up for, either.
Don't be scared to make the hard call here, if it doesn’t make sense, it just doesn't work. It's ok to make that adjustment – that's what this whole process is about, after all.
Many incoming franchisees are looking for stability and a constant flow of customers and repeat business. If this is you, your passion business might not be the best financial fit. Instead, you'll want a service or product where there's a recurring need.
Evaluate your love for a fun franchise, or an industry that you connect with, vs. your need for a sustainable and steady flow of cash. Franchisees fall into both categories, but by determining your priorities, you can find which bucket will best serve your ownership needs.
Profitable Franchises vs. Chasing an Industry Dream
As a franchisee, there's no right or wrong answer as to what's the "best" industry. Is your passion your most profitable business option? Maybe. Maybe not. There are many variables that play into this – the industry that interests you, your demographics, and growing changes within the economy. The key is to obtain all of this information and make a decision based on what you know.
Many franchisees opt for steady finances. Others do both – they start a business that will bring them financial success, then they branch out with a new concept brand wherein the market is smaller, but the personal interest is higher. Then again, there's always the option to go for it with your passion brand, however, ensure you have marketing and demographics on your side, and consider the reality of slower income streams.
Fuel your next business with knowledge. The more you learn about any industry, no matter what you choose, the better you can be prepared on what to expect as a business owner.
By Bethaney Wallace | Nov 06, 2020 | General Franchise Information