You’ve considered your strengths and desires. You’ve chosen the type of franchise to research. Now, how do you choose a specific industry, such as pet care, elder care, personal services, business services, or fast casual dining?
Research franchises in that category that offer the business opportunity and future you desire. Libraries and the Internet are wonderful sources of information:
- Check out the industry’s association for current trends and projections. An Internet search or call to your local library will help you find the right group.
- Ask your local library for national and local industry trend reports.
- Search the online business publications or business periodicals in the library for trends in the industry and recent press about the franchise.
If you know where you are physically going to locate your franchise, now is a great time to become familiar with the local Chamber of Commerce. Ask for an economic forecast and any local trend information they may have on the industry that you are considering. After reviewing the data you’ve collected, ask these questions:.
- Is this industry growing in the geographical area I selected?
- Does this industry have potential for the next 10 years? (Most franchise agreements are for 10 years.)
- What if there are downward trends in the industry?
- What is the competitive landscape within the industry and within my geographical area?
- Is there a competing industry or business type that has replaced the industry. I was exploring, and is it a more promising opportunity?
- What are the allied industries that are filling in the gaps?
For example: You research Pet Supply Retailers in your market and find that the market is near saturation. The last retailer to open closed within a year. Consider researching mobile or retail pet grooming, pet day care, or other alternative niche businesses that may give you a better chance of survival in such a competitive market.
About Joe Barbat
Entrepreneur Joe Barbat has been referred to as one of the industries thought leaders in his effort to revolutionize the wireless retail industry. Joe enjoys providing valuable information to people who are considering a future as a franchise owner in any industry, as well as, all things Michigan. If you have a franchise question that you would like to ask Joe, please feel free to contact him directly.