Love of a franchise idea is not enough.
You may love the idea of indoor potted plants but think of how many humans in your town would love the idea and be willing to pay much money to get some which need periodic responsible care with watering, fertilizing, and proper lighting to survive. Buy or start a franchise with a proven track record of success as a viable business.
Never settle for low profit margins.
Double digit profitability returns are desirable but don’t go to the other extreme and expect 30% or greater profit margins.
Try to appeal to the affluent middle class.
The relatively poor patronize severely discounted products and services and you don’t want a franchise sensitive to economic downturns. Don’t try to compete with Amazon, Walmart, or fast food franchises who have the advantage of buying wholesale.
Your franchise should have growth potential both internally and region wise.
Your franchise should have relevance to more than just your immediate territory and be able to expand nationally and even internationally and an ability to expand or grow internally with new periodic offerings.
Owning your own commercial property is ideal.
Leasing can become expensive if it is not a very small property and can severely affect your profitability. Own your own commercial property if possible but don’t lose sight of the importance of the location of it.
Provide a unique experience for your customers.
If the experience is not unique and memorable it is just a commodity which will not be greatly prized by your customers and you will have plenty of local competitors.
An effective internet presence is mandatory.
TV and mail advertisements for small businesses are a thing of the past and an effective internet presence is vital so you will have to find a knowledgeable software expert to set up your website so it can be easily found by your customers and potential customers.
Your franchise will be a small business so be aware of these 11 basic drawbacks which have to be overcome.
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