Sunday, July 12, 2009

How to Choose Your Franchise Niche In Today's Economy

Regardless of the economy, it's important for you as a prospective franchisee to find a franchise field that will allow you to capitalize on what you do best--whether it's sales, management, production or anything else.

Consider if you want to be home-based or not and whether you feel your products or services should be consumables, hard goods, tangibles, entertainment, contract services or something else.

Be sure to ask each franchisor's sales team and its existing franchisees how the current economy is impacting their sales and profits and how they're addressing these issues. Some franchisors will push their franchisees to lower prices to gain market share. This may have the unhappy effect of producing sales revenues without profits, as reported by some food franchisors who have introduced many low-cost specials.

If your investments are in a melt-down mode, you're unemployed or just frustrated at being under-paid in your current job, you should consider buying a franchise. Don't let today's economy postpone your decision.

Another question to ask franchisees is what impact the current economy is having on their customers. Are they postponing purchases, trying to negotiate lower prices, or changing their buying habits based on their level of confidence in the economy? Has the current economy had an impact on the time it takes new franchise units to reach profitability?

Don't let the news about the economy cause you to freeze in place or postpone your decision. Use these thoughts to narrow your search. Then do your homework.

For assistance in your analysis email The Franchise Doctor at, call us at 800 220-8256 or search our website for further insight.