Evaluating a franchise opportunity requires a diligent review of every aspect of the opportunity. During the evaluation process, individuals may overlook a very important business attribute – the marketplace.
Just because the franchise business of (selling) snow cones is going gang-busters on the beaches of Florida or in desert towns of Arizona, might not necessary have the same high demand or potential as in Fairbanks, Alaska or Duluth, Minnesota.
1. Company. Think of your business in terms of the uniqueness of your product or service will have in the marketplace. Many refer to this as your USP – your Unique Selling Proposition. Do any of these USP’s sound familiar to you? ‘Better Ingredients, Better Pizza’. ‘Eat Fresh’. ‘We Try Harder.’ Or, “You Are In Good Hands’. All these USP’s are trying to convey a strong message to the marketplace of why customers should do business with them.
2. Customer. There are a few different types of customers you'll need to think about in relation to your business. Some with be your true customers; the ones that will actually buy your product or pay for your services. Others, who know of your business, like friends, family, church members, business associates, or networking contacts, may influence the decision of others to do business with you. Word-of-mouth is still the most powerful way to market your business and these folks can play a key role in being market influencers.
3. Competitor. It is important to be real and not fool yourself when analyzing the competition. Just because you have a flavored-crust pizza, doesn’t mean you have no competition, if no one else has the same exact product or offering. You are still peddling a pizza. So, any and all other pizza companies in your marketplace should be viewed as competitors.
Once you have a good understanding of these 3 C’s, be sure to spend some time looking at the overall size of your town, city, and area that you plan to serve from a demand and revenue potential.
Put some thought into the product or service from a market trend or market fad perspective. In other words, does your research show a true long-term demand or a short-lived fad of the business that is under review?
And, finally, study the growth rate and earnings potential of the market. Do you see the growth, demand, and earnings possibilities with a retail travel agency going up or shrinking? Or, are there better business opportunities with products and services for kids, pets, working parents, or the aging baby boomers?
Knowing and researching some of these market factors prior to your pulling-the-trigger on your business decision will greatly factor into your potential success.
MyLoopCard is a golf marketing franchise company. Founded in 2007 and started franchising in 2009, MyLoopCard offers a unique way for local businesses to advertise their business with a customized 16-page golf scorecard. MyLoopCard seeks franchise owners that want to be active in their local community, and desire a flexible and family-friendly lifestyle.