There are few feelings that are more exciting than embarking on a new business journey. Still, despite all the optimism of entrepreneurship, starting out on your own can be a frightening proposition.
Whether it is the economic environment at the time you are planning or a lack of experience, there is a variety of reasons why someone might be scared away from taking such a bold step.
For many entrepreneurs, franchising offers the answers to those worries. Small business trends show that the percentage of new businesses that are franchises has nearly doubled in the past year. But when looking into franchises, it is important to find the right fit. Considering that importance, what traits do the best franchises have in common, and how do you know when you found that right fit? Let’s take a look at the most important aspects of choosing the right franchise opportunity and which factors to pinpoint in your research.
Industry
The first step for entrepreneurs to find their next – or first – opportunity for ownership is to narrow down the options. One of the best ways to do so is choosing the right industry. For some, that means filling a passion they have long wanted to turn into a career. For others, they prefer to take expertise they have cultivated in a certain field and build a new business with some level of innovation with their own concept.
For many, however, the industry does not necessarily matter – so long as there is a proven business model. Some owners opt for businesses in markets they see as opportunities for potential growth, while some search for recession proof industries to maintain a consistent level of success through inevitable economic cycles.
No matter your industry preference, the right fit comes down to business sense and comfort. Let’s start with the fundamentals.
Profit Margins
The point of running a business is ultimately to provide a value to the customer and to make a profit by doing so. There are countless ways to balance those two essentials.
Most business owners highlight the need for a plan before jumping into a new venture, and detailed research on the business model is a necessary part of that.
When choosing a franchise, you’ll have a wealth of information at your disposal. Each franchise system has its own model and its own financial structure – from initial fees to ongoing costs and benefits. Every business requires a financial commitment, but many of the best franchises provide the full picture of how your investment should pay off in the long run. It’s important to be comfortable with the structure of any franchise you are putting your time, effort, and of course your money into.
Support
Beyond the roadmap to sustainable profit margins, one of the most common reasons for new business owners to opt for franchising is the level of training and support they receive from being a part of a larger system.
Not only does buying a franchise earn you the strength of an established brand but you often gain the ability to tap into otherwise expensive software, e-commerce, marketing, and training operations. Depending on the franchise, there is also a common benefit of having more purchasing power due to a brand’s ability to keep the cost of goods lower through bulk purchasing for its franchisees.
The Covid-19 pandemic certainly put support at a premium, from navigating relief programs to determining the best course of action for hours and service options. Whether in good times or during challenges, one of the largest benefits of franchising is knowing there is always a guiding hand through business ownership.
Belief in the Product or Service
When you’ve made the decision to franchise with a certain brand – or at least narrowed down the options – one of the final factors to consider is your own commitment to the brand’s mission. Whether you feel the product is one that will fill a need or that the service truly provides a value, it is essential to believe in the business. Otherwise, why invest so much time and money into it?
Make sure that you can dedicate your energy on the specific concept of the business you are starting, and the franchise’s ability to guide you to your long-term goals.
Wild Birds Unlimited
There are many reasons Wild Birds Unlimited continues to garner accolades – including recognition as the top retail franchise based on franchisee satisfaction. The best franchises are those that combine financial opportunity with the training and support to take advantage of that opportunity.
Wild Birds Unlimited prides itself on doing just that through our WBU Mission, Vision, and Values– bringing people and nature together, bringing joy into customers’ lives, and sticking to WBU’s values of honesty and ethics.
That commitment extends from industry-leading support to a fervent and loyal customer base that franchisees can serve. To learn more about franchising with Wild Birds Unlimited, contact us today!