updated - May 26, 2020 Tuesday EDT
The latest franchising industry statistics reveal that about one out of every 12 businesses in the U.S. is a franchise business. Starting a franchise business can be incredibly fruitful, but it's something that requires a lot of careful consideration before moving forward.
Depending on the type of franchise you choose to open a location for, there are many things you can do to help increase the chances for success both before and during the initial phases of getting it started.
If you don't have passion for what you plan to do, it's worth considering other options. Having passion for the services or products you plan to sell, naturally brings more energy and enthusiasm that help you grow your business. While it is possible for someone to have a bigger interest in aspects of the business like the inventory and growth and still make decent profits, people often find bigger margins in companies that form a connection between the owners and the customers. For example, if you decided to sell Washington D.C. real estate, it's likely to be a lot easier if you love the city and are excited to show potential buyers the reasons they might love it too.
The right location can be one of the most important keys to success. It can ultimately make or break your business if you rely on in-person traffic. The older a business is the more advantage it has, as the owners were able to pick and choose their spot to build before others came. There are still opportunities for new franchise businesses to assess if a certain location will work for them, as it's surely one of the essential logistics to consider.
Whether you plan on being a hands-on or absentee owner of a franchise, it's critical to hire a team that you can trust to do the best job possible. Especially when you're just starting out, you'll want to know that things will run as smoothly during those first stressful weeks with employees that will help set you up for long term success.
Prior to opening your franchise business, you'll want to do some research on the community where you plan to be set up. It might be wise to look around the area to see if this sort of business will thrive in the area that you've chosen, and if it matches the economy and spending habits of local residents. Check out your competition too, determining whether there might be someone else out there that could prevent your franchise from taking off the way you hope.
Above everything, prepare to spend a lot of money on marketing your business franchise, but keep spending in check with regular spend analysis. Especially if you are a lesser known brand, you'll want to do everything in your power to get your name out there, letting potential customers know that you exist. This is true for both Internet and brick-and-mortar stores.
TOP 10 FRANCHISES OF 2020