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Congratulations! You’ve leaped to explore the world of franchise ownership. While the idea of owning your franchise sounds appealing, one thing might be standing in your way — which franchise should you start?
Choosing a franchise is no easy feat. With so many industries where you can start a franchise and so many franchises within each industry, it can feel like you’re well-suited for many different franchises. How do you know which one is the right one for you? How do you know where you’ll be the most happy? Before you invest your money in a new business, you want to be sure you’re choosing the right business.
So, how do you choose your next franchise? The process doesn’t have to be as daunting as it might seem.
Look Internally First
Before you start sifting through potential franchises, look internally first. Where do you feel most drawn? If you could design your life to look any particular way, where and how would you show up? What type of work lights you up?
Getting introspective is a great way to start to narrow your search. Rather than starting a franchise simply because it feels like the popular choice, you can choose one that works best for your unique capabilities, strengths, and preferences.
Do Your Due Diligence
Once you know which industry or type of franchise you want to start, the next step is to start outlining a few of the top franchises in those areas. Doing your due diligence lets you understand what you can expect from investing in a business.
The due diligence process can play out in a few ways. First, you will want to talk to others who own the same franchise you want to invest in. Sit with them over coffee and talk about life as a franchise owner in that specific business. You’ll also want to research online to hear what others say about being a franchise owner in a particular field. Finally, talk to the franchisor to see how well you align with their company culture and values. Will you enjoy working with the team? Does it feel like a good fit?
Hearing this feedback and listening to your gut as you talk to the franchise itself will help you to get a more realistic view of what you can expect when you start.
Look At Your Local Market
If you’re opening a brick-and-mortar store, you’ll want to analyze your local market to ensure there is demand for the franchise you’re considering opening. Often, asking around your town or community forums about the types of businesses your neighbors are missing will help you pinpoint gaps in the market you can fill.
This step is especially important for franchises requiring your neighbors to buy from you. When they actively raise their hand and ask for your business, you have more certainty that you’ll be able to grow and scale quickly in your area.
Consider the Big Picture
While looking at the current demand and market for the franchise you’re considering is good, it’s equally important to think long-term. What’s happening in your region? What’s happening in the industry? Will the franchise you’re considering opening stay relevant to your market’s needs over the long run? Or is it a fad? Looking at how well the franchise keeps up with innovation and modern demands will help you predict the brand's longevity.
Ultimately, the process of choosing the right franchise for you boils down to looking internally, looking locally, and looking long-term. If a franchise feels aligned with your personal goals, is in demand in your market, and has the potential to grow long-term, you’ll narrow your search significantly to a handful of franchise options to consider for your and your family’s future.
Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.