7 Tips for Finding Your Best Market
7 Tips for Finding Your Best Market
As an incoming franchisee, you are likely look in different industries for which you can start your business. This will be one of your most important decisions as a future business owner. Finding your stride will help you find success, and it will also increase your interest level in your business model.
However, that's not the only form of market that you'll consider as a business owner. It's also important to know who is buying from you, and of them, who your best customers will be. In this scenario it allows you to appeal to your best shoppers and provide the products and/or services that they will need. By narrowing this field in the beginning, you can then research various business models and find a service that will fill a need. Working this way allows you to seal in recurring revenue for you and your location. It means recurring income and dollars that continue to flow, day in and day out.
Use these proven tips to find your best franchise market, and how to appeal to both the patrons who will stop in, but in choosing your franchise business going forward.
1. Research the Demographic
Who lives there? Who shops in your area? Find where you'd like your business to be located and start researching the local population. What are the most prevalent ages? Races? Interest levels? Are there recreational activities that are popular in that area? What about the state or town draws in unique needs? Compile all of this information and allow it to shape your future customer.
You can research this on your own, of course. But it's also a good idea to look at city resources. Tune in with any potential franchising companies sooner rather than later, as it's likely they will have their own information too.
2. Work Back From Your Ideal Industry
What type of business is it that you want to own? By first starting where you want to work – or what you can work in – you can see if this will be a good fit for your area. And, in the case that it is not, you can always reevaluate. Either by choosing a different franchising industry, or choosing to work in an alternate location. However, only by first doing this research will you find if you need to continue on your current path, or go elsewhere as a franchisee.
3. Running the Numbers
Before venturing into a franchise contract, see what types of numbers are available. What type of profit margins exist for the industry? How much do folks spend on your service? How often will they need said service? Look at these numbers ahead of time so you can predict income levels. While it's always nice to be surprised on the green end of things, it's never good to fall into the red without warning.
4. Filling a Need
As mentioned above, there is perhaps no better way to ensure yourself business than by filling a need. When customers are looking for a service, they will always be requiring you to fill it. Consider what type of industry is missing from an area and if you can be the person to step in with that job. In a similar mindset, you should also ensure that a market has not been overly saturated. This will create competition among brands and make it harder for you to remain successful. If offering something new to the area instead, you can create job security and steady income for your franchise location.
5. Ask Locals
When all else fails, ask folks what it is that they want. What do they need and/or want? This is the best feedback you can get. After all, these are the folks who live and spend in your area. Finding out where they would potentially spend more money could make it land in your pocket. Don't overlook their ideas. Put together a focus group, poll folks casually, or send out a survey of some kind that offers steady feedback. This can provide a great sample of what local shoppers would enjoy having around.
6. Looking at Other Locations
Once you have an industry or company brand in mind, go visit other locations. This can give you the best idea of how your franchise will actually fare once up and running. It can give you insider insight on who shops, how busy it gets, and if there are periods of lulls. Ask the franchise owner if they'd be willing to answer some questions. But in the meantime you can shop or hang out to take in some of the most basic info.
7. Look at Past Businesses
Have there been past businesses in your area that failed? What caused them to do so? What are the businesses that are still up and running, years later. Look at who's doing what and how it's allowing them to succeed. The longer running franchises will likely have a formula for success, and if you're able to repeat it, you can create that same success for your new franchise location. Take notes when considering past businesses and use this data in your favor going forward. This will allow you to can jump forward with a brand that serves its market, which, in turn, serves your wallet.
Understand who your customers are, and what your franchise platform has to offer is one of the best ways to create future success. To learn more about starting your franchise location, get in touch with us today.
By Bethaney Wallace | Sep 09, 2020 | Recent Franchise News