You are excited with the thought of owning a franchise in your area. You have also determined that the franchise will be profitable, but there is one more important consideration to make: how does the market feel?
When you launch yourself in the market, you want to open to a crowd of excited clients. Sadly, if the market is not ready for your franchise to establish in their community, you could be met with a dull response. You can also take help of franchise distribution service for better understanding.
Before buying a franchise and setting up shop, it is important to analyze the market you are considering entering. Here’s how:
A SWOT Analysis
This traditional analysis measures your specific strengths, weaknesses, opportunities, and threats.
Even though, it is been in practice for years, the SWOT analysis continues to find new information for businesses- so much so that many companies both small and large, conduct an analysis annually. It is an important exercise for you also as you decide whether your market is ready for franchise you are considering.
Here is what to consider when filling out your SWOT analysis:
Strengths: Know the USP of your franchise
Weaknesses: What are the weaknesses of the franchise you are considering starting?
Opportunities: What are the opportunities for expansion?
Threats: Know if there are any other franchises that have dominated your market and could be a threat for your expansion.
Research About The Competition
If there are many businesses that could be a threat to your business growth, it is time to know about those organizations in details, also find out how they could stop your franchise from growing.
To analyze the competition in your area, you need to collect information. Below are a few good places to start:
Search your competition on Google. See what your find. Sometimes, the companies are struggling with poor reputation, which means your market is actually ready for a new company to enter the market.
Social Media
How engaged is the community? If the business is not doing a lot to get their clients excited, you might have a better opportunity to get a nice portion of their client base.
Review Sites
What your target clients are saying about your competition? If all or most of the reviews are negative, the company might not be a threat after all.
Analyze The Market
The more you research, the better you will be able to know about the market you are considering entering. This is a key step to take before you buy your franchise.
Franchises in India are really popular; you just have to do your research well to ensure success.