How to Compare Franchise Opportunities in Really Crowded Sectors
Just because you find a franchise opportunity in a thoroughly saturated sector of the marketplace doesn’t mean it’s going to be profitable. By that same rationale, it doesn’t necessarily mean it’s going to be too difficult to compete in that area either.
In order to develop a franchise properly, you need to make some important assessments about why you want to open that type of franchise in the first place and consider what makes you excited about that particular opportunity. If it happens to be an overly crowded sector, there must be a reason for that and it’s up to you ascertain what works and what does not.
Perhaps that type of franchise business has the potential for continued market growth and there is a high demand for the product or service being offered by that and other similar franchises that are competing with one another in a certain sector of the marketplace.
In some cases you could have the upper hand over the competition, if you’re considering buying into a company that is widely regarded as Australia’s top rated cleaning franchise then you may have an easier time of it based on reputation alone. It doesn’t always mean you’re going to succeed but you have brand name recognition on your side and that is certainly a distinct advantage.
However, that type of brand strength isn’t always reliable or available to prospective buyers and it can be tough to know which franchise is the best to choose in a crowded sector. So let’s take a look at some of the ways in which to help yourself determine what franchise opportunities are the ideal ones to choose in really crowded sectors.
Why This Franchise?
There are so many different franchise opportunities out there. From carpet cleaning to mobile dog grooming to fast food restaurants, you name it. So the first thing to ask yourself is what attracts you to this specific type of franchise business?
Approach this from the standpoint of an entrepreneur looking to start his or her own business. What are the daily challenges inherent with this starting this type of business, how difficult is it to get something like this off the ground? How do you market and advertise this type of product or service and how much support will you be receiving from the franchisor in terms of drumming up new business in your selected area.
If you’re on your own you need to realize how much tougher that might be as opposed to having comprehensive support from the franchising company. But some business owners prefer the greater amount of independence in getting their franchise up and running. This is all up to you, of course, and you will need to decide how much you want to take on by yourself.
Your Own Skill Set
Another critical component to consider when you’re comparing franchise opportunities in a highly saturated sector is your personal skill set. Do you have the abilities and know-how to take on this type of franchise business? If not, are you prepared to educate yourself and submit to the amount of training necessary for mounting this type of operation with success?
Some franchises will require you to take on many different roles and you need to decide if you have the physical and mental preparedness to wear many hats at one time. That’s why it’s vital for you to do your research when you’re eyeing a particular franchise to purchase, you might soon find out you’ve bitten off more than you can chew as you get deeper into the process. Hiring employees may help to defray some of the pressure of taking on all of these roles and responsibilities, but if you’re the owner of the company only you may be able to tackle some of those challenges yourself.
What Makes Them Stand Out?
As you compare your choices, think about what makes that franchise stand out above the rest. What’s the hook that’s going to make customers come into your pizza franchise instead of the guy’s across the street? If you can easily identify that specific thing, you might be able to get ahead of the game.
Sometimes that hook isn’t exactly discernible at first glance so discuss this topic with the franchisor and have them explain it in detail. Another smart thing to do is talk to other owners who own franchises for that business. Find out their opinion on that company’s hook and see if it’s truly an asset in the day to day operation of the business.