In this series of articles, we will unravel the mysteries of CHOOSING A MODERN FRANCHISE or BUSINESS OPPORTUNITY. We'll uncover the TRUTH about what to look for, what to avoid, and what to ignore.
In Parts 1 through 6, we have examined the basics of what needs to be considered when choosing a franchise, license or business opportunity. The "key elements" of evaluating the business model from a modern standpoint, and the "pitfalls" that the modern business environment presents.
You will now have to decide between an ESTABLISHED franchise or business opportunity, or a NEWER start-up.
The accepted standard seems to be that "ESTABLISHED Franchises" are less risky than "NEW Franchises" because the parent company has been around a lot longer, and they have many more established units. True enough, but there's a LOT MORE TO CONSIDER THAN THAT . . . .
- Is the "established franchise" OLD? Boring? Is it an OLD IDEA?
- Is the "established franchise" still a VALID concept compared to NEWER competitors that have entered the marketplace? Example: Maybe the world has grown tired of SUBWAY, but newer concepts like Jersey Mikes & Firehouse Subs are growing for a reason.
- Are there too many units already? Will you be competing with other identical franchisees for market share . . . .
Face it - consumers LOVE NEW and DIFFERENT. There is a REASON that some of the NEWER BRANDS quickly gain acceptance in the marketplace. For many consumers, NEW IS BETTER. So if you really think that an ESTABLISHED FRANCHISE is a SAFE BET, THINK AGAIN. There's a LOT MORE RISK there than you think. Look around you . . .
- Do YOU tend to EMBRACE the new concepts (Shanes Rib Shack, Firehouse Subs, Jimmy John's, Five Guys, etc.), or do you stick with the old standbys?
- Do the NEW CONCEPTS (the ones that are valid and make sense) that enter the marketplace SEEM TO DO WELL?
- Are these NEW CONCEPTS pirating marketshare from the older, BORING established concepts?
You KNOW THE ANSWERS to these questions. It's YES. So consider that the NEW FRANCHISE CONCEPT has some very relevant advantages in modern society:
- Increased probability of a visit by consumers LOOKING FOR SOMETHING NEW, DIFFERENT & BETTER.
- Almost GUARANTEED curiosity factor. Consumers are constantly looking for a NEW EXPERIENCE. Will YOU BE THAT NEW EXPERIENCE?
Part of evaluating any franchise or business opportunity can't just be about "AGE" and "STABILITY", it has to consider the benefits of something NEW:
- Is the concept MEASURABLY DIFFERENT? Will consumers realize better quality, better prices, better selection, etc.,?
- Is the PACKAGING improved? Many of the older franchises SERIOUSLY LACK IN MODERN PACKAGING (theme, colors, style, etc.) NEVER UNDERESTIMATE the value of packaging in today's world. Modern consumers NEED THE "WOW" factor. THEME is a really big deal.
If you think about it, it's hard to get very excited about another "SUBWAY" opening up. Something NEW and DIFFERENT is probably going to get your attention and most everybody elses too. Which would you rather have?
For my money, I'll cast aside "conventional wisdom", and go with something NEW and DIFFERENT, and spend my time evaluating the validity of the NEW FRANCHISE on it's merits, not it's age.