Franchise Opportunities – Where do I start?
Choosing a franchise can be a positive experience or a shot in the dark investment. Like most decisions, a systematic process for exploring and evaluating your options makes it much more likely that you'll be happy with the outcome. This guide will make your research faster, easier and more productive.
Business Franchise Opportunities - Self Assessment
Before looking at the vast amount of franchise information on the web, take a look inward.
- Available Capital – Will you be financing your franchise on your own, or considering loans? Franchises often require new franchisees to have far more capital than they'll typically use, because insufficient capital is the number one reason for franchise failure. Here are a few popular financing options you might consider:
- Franchisor Loans: Some brands offer to finance their franchisees.
- SBA Loans: The Small Business Administration offers loans to qualifying applicants.
- Commercial Bank Loans: Available at your local bank branch.
- Time Commitment – Many franchises require an owner to be present for a majority of business hours. How many hours are you able to commit?
- Goals – Why are you starting a franchise in the first place? Most people go into the process with something specific in mind, and recognizing that is critical to fulfilling it.
Top Franchise Opportunities - Industry Assessment
Analyze the industries you're interested in to make sure you're picking one with good opportunities.
- Historical Trends – Has the industry been growing in recent years? Are franchises in the industry successfully adapting to changing customer demands?
- Short-Term Projected Growth – The first few years are going to be a struggle for survival as you build a customer base and awareness for your franchise. You don't want to be competing for a shrinking market during this period.
- Long-Term Projected Demand – Will your services still be in demand in 15 years or however long you plan to work?
Best Franchise Opportunities - Franchise Assessment
Common Mistakes to Avoid
- Don't limit yourself to franchises you're familiar with. A franchise offers a lot more than brand awareness – proprietary tools, training, marketing, and methods should be a major part of your selection process.
- Don't write off a brand just because its franchise fee or capital requirement is above the industry norm. The franchise fee usually reflects the level of value you should expect to receive.
Bottom Line: Give more weight to the services the company offers than your initial impression.
Steps to Get Started
- Browse through the opportunities in your industry. You can access our database through the 'Search By Industry' tab at the top of this page or narrow your search to our low cost franchises.
- Review the capital requirement to make sure you qualify.
- Pick out about 5 to explore further and you're well on your way.
Choosing Between a Product and a Service Franchise
There are basically two types of businesses that can be offered by an individual. They can offer Products to their customers which are tangible goods meant for the customer's consumption or they can offer them Services which are intangible and work to make the life of the consumer easier and more convenient. With technologies advancing rapidly and the global demands of consumers changing there is a very thin line dividing the service and product segment of the consumers demands. An example of this can be the purchase of a car from an auto dealer. The dealer not only offers the vehicle at a competitive rate but now has to offer different services as well, such as financing options, after-sales services, ready documentation and other non- tangible services. This kind of merging has made it very difficult to draw a clear line as to the service and product industry but for the sake of argument we will consider a theoretical perspective where you have to choose a traditional product franchise or a service franchise.
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The Economist Group Announces Online International Franchise Fair
According to event organizers, currently confirmed franchise concepts include (but are not limited to):