Starting your business can be an excellent path to financial autonomy and work-life balance. Investing in a new franchise in the USA can help you pursue that path and set you up for long-term success. When considering starting a new franchise, you must spend time on extensive research. Researching the various facets of franchising will help you make an informed decision while leveraging the benefits of this business model. There are countless franchise opportunities in the US. But before you pick one, you must thoroughly examine factors like costs, market trends, and brand reputation. Unsure about the franchise research process? Let these quick tips help you out!
1. Conduct In-Depth Industry Research: It is wise to decide on your preferred industry before browsing potential franchises to buy. Once you shortlist the industries of interest, you can compare them based on research data. At this stage, you can collect information about two to three shortlisted sectors and evaluate them in detail. Your research can focus on the industry's history, market size, competition, and growth trends. After the industry overview, you can delve deeper into crucial metrics like TAM, SAM, and SOM. TAM (Total Addressable Market) will help you understand the market opportunity. However, you must also calculate the Serviceable Addressable Market (SAM) and Serviceable Obtainable Market (SOM) figures. These metrics will help you understand the market share you can hope to gain by buying into this industry.
2. Research Your Local Market: While you will finalize the franchise location later, you probably have some idea about your preferred area already. For example, let's assume you want to start a business in New York. In that case, you can analyze market trends in different pockets of New York. You should assess the customer segments in this area and study their buying habits. What kind of goods and services are they buying? How are they interacting with the existing businesses in the area? These are some questions you must answer while researching the local market. You can glean valuable information from local contacts, online research, and Chamber of Commerce resources about your preferred market.
3. Visit Franchise Expos: Expos and Trade Shows can help you find out about different franchise brands and compare their offerings. At this stage, you can start shortlisting the best franchises to own. Look for high-growth brands in your preferred industry. Prioritize companies that have a limited presence in your local market so that you can leverage the opportunity to grow without facing brand cannibalization. Speak to the franchisors and understand their vision, mission, and model before making your decision.
4. Speak to Existing Franchisees: Once you shortlist your favorite brands, you can start conversations with existing franchisees. These people are in the position where you want to be. Hence, they can offer the best insights into the benefits and pitfalls of running a franchise unit. Ask them in-depth questions to understand their experience and get their advice.
5. Interact With the Franchisor’s Training and Support Team: The franchise’s training and support team will be critical to your future success. They will show you the ropes and guide you to manage the operations. Hence, you should interact with them and understand their approach before sealing the deal with a franchise business.
These tips will help you make a well-informed choice. Keep reading the top franchise magazines in America for more such tips!
That personal disappointment fueled me.
To be perfectly honest, I’m pretty sure if I had made the Olympic team, I wouldn’t have left the sport with the hunger and desire necessary to start this business.
After leaving the sport, I realized my experience swimming at every level, from age-group swimming to international competition, gave me a unique perspective on everything that was wrong with swimming, especially at the entry point for most kids.
