You know you want to go into business for yourself, but just don’t know what type of business you want to open. Once you do some soul-searching and determine you are the type of person who can operate their own business, whether from home, at home or in a franchise situation, finding the right business can be as important as the decision to go into business for yourself.
Look into the many franchise opportunities that have an interest and you can afford, and then choose three or four opportunities. You can then narrow the list be researching their viability in today’s market as well as the saturation in your community. For example, if you are considering a franchise of a nationwide donut shop and there are none within 50 miles of your home, the demand may make it a worthwhile investment.
On the other hand, if there two or more other donut shops in the community, any donut business that exists will split three ways. Additional outlets do not automatically create a larger market. Most times it simply divides the market by one additional outlet. You will also want to consider profit potential and always keep in mind the initial franchise fee, the monthly franchise cost as well as the cost of company-owned supplies when comparing opportunities.
How long it will take to reach the break-even point, that is the amount of your investment and associated costs, will be paid and monthly charges offset by sales income, before making a decision. It will not hurt to talk to other franchisees to learn of their experience with a particular company. While many may not be willing to share detailed information with you, since you are not yet a member of the “family,” they may be willing to talk about their experience with that particular chain.
Look at the trends in the company with which you may want to become a partner. A few years ago, the donut business took a dive in the wake of many concerns about carbohydrate diets. Several unprepared companies took a proverbial bath as a result and could not stay afloat until the controversy ended and donut came back into fashion.
Consider you target audience and determine if the communities demographics will provide a large enough market for your business. If the company estimates your primary customers will be between 30 and 45 years of age and the community demographics show only about 10 percent of the population fit that demographic, donuts may not be in high demand in that area.
Also consider the employment rate in the area and if it is high it may be a sign that not many people can afford the luxury of buying donuts on the run. There are numerous factors to consider when choosing a business and having all the facts and information available can help make an informed decision.
Together we shall win,
Adesegun Akitoye
No comments:
Post a Comment