Want to Start a Business? Don’t Worry About the Competition. Ask Yourself the Right Questions
When it comes to choosing a business to buy, what matters most is not a competition-free market but rather a demonstrated record of success.
Think about it. If there’s no competition, it may mean that demand for this type of service or product is insufficient. But if you see a slew of similar businesses thriving, you could conclude the market is strong for that service or product.
This is why you tend to see a bunch of fast food restaurants all in a row. We can presume lots of hungry people pass by this location on a regular basis.
What separates the wheat from the chaff will be the best operating system and business model. And the best way to get a good understanding of all of this right out of the box is with a franchise.
Instead of starting from scratch, if you choose a good franchise, you will get a time-tested operating system, as well as training and ongoing support to get you up and running in your new business. The Franchise Disclosure Document will provide you a full rundown of your upfront costs.
The hard part becomes making the selection, which is why the research phase of the process is so important. With 75 industries represented among 3,000 franchisors, you will have your work cut out for you, which is why we recommend a franchise coach who can help you narrow your choices.
When you reach out to a professional, the two of you can do a lot to pinpoint the types of businesses that would match your particular strengths and interests.
Determine What Works for You
Create a list your strengths, based on book knowledge. No matter what career path you took in life, you still have these strengths borne out by your school experience. What did you study in school?
Are you strong in science, math, or did you excel in English class? Don’t worry if this list doesn’t include any business classes. The humanities offer great insights into human nature, which is a strength in running a business. More obviously, being strong in science and math prepares you well for businesses that require technical knowledge or numbers sense.
Make a list of the different skills you’ve gained over the years in your career. Stick with the micro level — start with activities and then link the skills associated with them — so you don’t inadvertently dismiss certain skills you may not realize you’ve gained.
For example, if you worked in sales, you likely cold called, collected leads, networked though local organizations or trade groups, compiled marketing materials, cultivated regular customers, tailored your efforts to suit clients’ particular needs and established ongoing relationships along the way. These activities entail skills in communications, organization and marketing, among others.
Make the right business match
Review of the Local Economy
Do an informal audit of the types of business that are strong in your region. Possibly many of these require business services that can be provided by a franchise. Or you may discover other business types that offer room for growth. List all the businesses that meet these criteria, even if they may not seem suitable at first.
After you finish making your lists, you can see which businesses might be best suited to your portfolio of skills. Now you’re ready to start searching for an appropriate franchise.
Further research will give you a better handle on the role of the owner in operating the business as you learn the ins and outs of the franchise system.
Your preparation will help you make the right match for yourself and your local economy, so you can carve out your own place in a well-developed market and outshine the competition.
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Contact Dan Citrenbaum to help you create the career you’ve always wanted. As a franchise coach, Dan brings years of experience helping people select and buy a franchise or existing business. You can reach Dan at firstname.lastname@example.org or at (484) 278-4589.
© Dan Citrenbaum 2015