When you’re ready to start a franchise, what do you look at first? The most affordable franchises available? The amount of competition in your area?
Although these are important factors to consider, there’s one factor you should look at before anything else. Which industry is right for you to start a franchise in?
Here are a few questions to help you narrow your search.
What gets you jazzed up?
Probably one of the easiest ways to decide if you should start a franchise in a specific industry is to consider your own personal interest in it.
- Do you love what you’d be selling enough to talk about and promote it regularly?
- Are you proud of the industry and what it does?
- Would you love serving your customer base and solving the specific problem you’d be hired to work on?
Be brutally honest in your answers to these personal questions. This will help you see if an industry is right for you long-term.
Where have you worked in the past?
It’s been said that the best way to know if a franchise or industry is right for you is to work in it first. Many franchise owners get a job at the business they’re interested in pursuing before buying the franchise. You can do the same in your industry too.
If you’ve worked in a specific industry in the past, you already know the challenges and the benefits associated with owning a business in it. This can be a tremendous help as you try to answer the question of which industry is best for you to start a franchise in.
How much risk are you willing to take?
Like starting any business, buying a franchise is a risky endeavor. Even with a proven business plan to back you in the beginning, you will face challenges with the location, marketing your new business and getting people in your doors.
Still, some franchises and industries are more prone to risk than others. For example, if you have a brick-and-mortar store, you will naturally get more exposure than if you work remotely or rely on word-of-mouth marketing to let others in your area know you’re in business.
How much involvement do you plan to have in the business?
Let’s face it, if you plan to get your franchise off the ground then step away slowly and let it run itself, you probably don’t need to worry as much about which industry you love. Instead, you can look more at which industry has the most long-term potential.
Some franchises are also more self-sufficient than others. For example, if you have a home-based franchise, you’ll have to put in the majority of the legwork to make it a success. However, if you start a restaurant, you can slowly hire managers and employees to oversee the day-to-day operations.
Your Starting Point
Deciding on an industry isn’t as easy as it might seem. Use these questions to narrow your search so you’re more likely to start a franchise that’ll pay off for you in the long run.