Inflation rates continue to dominate the headlines of...
There's more than one market to look into when you're deciding which franchise to join in Canada. The industry may be crucial in your search, but you also need to consider your potential customer market. This market is easy to overlook, yet it should be a serious consideration in your franchise search.
You need to know who will buy from you, and among those individuals, who the best customers will be. This knowledge is how you appeal to your top shoppers and provide what they need or want. When you narrow down this field from the start, you can then look for business models that are going to fill a need in the area in which you want to operate.
Evaluate the demographic
Look at who lives and shops in the area you want to open your business. Consider all the major categories, including age and interest levels. Which activities are popular in this area? What about the town or state draws in some unique needs? By compiling this information, you can start to form a picture of your future customers.
Work from your ideal industry
Which type of business do you really want to own? When you know what you want to do, you can decide whether that really fits the area in which you want to operate. If it is not a good fit, you can reevaluate and choose a different industry or location.
Run some numbers
See what type of numbers are available before signing a franchise contract. What are the profit margins for the industry you are looking into? How much do people, on average, pay for the service or goods provided? How often will they need these services or goods?
Take a look at these numbers in advance to make some rough income level predictions. This can help you decide whether you are heading in the right direction.
Confirm there is a need
Look at what type of industry is missing from your desired area and determine whether you can step in to fill that void. You should also check whether the market is already over saturated with the type of good or service you want to provide. Too much competition tends to make it difficult for new businesses to be successful.
To help gauge need, you can also look to the locals to learn more about what they need or want. Whether you form an official focus group, send out a survey or casually poll people, this can really help you determine the needs and wants of area residents.
When you know who your customers are and what a potential franchise can offer them, you will be better positioned to make a wise franchise choice. Dig into your target business area before you make your final decision.