How to Spot a “Hot” Franchise Business

“When you’re hot you’re hot, and when you’re not, you’re not” according to the Jerry Reed classic song of the same name. No truer words have been spoken that could describe a multitude of franchising opportunities.

Practically everyone wants to be associated with the latest and greatest, the next big thing, whether it involves a franchise, the latest phone, or the newest car. Be careful where you tread, however, because what may seem hot at the time, could just be a flash in the pan. Conversely, what’s old can often be new again.

Customer demands and needs may vary from year-to-year. External market conditions, such as the economy, government regulations, or competitive pressures can change your business dynamics overnight. So, how do you decide what is hot and what is not?

Let’s take a look at several key factors that may help you in your decision-making process:
•Start by simply getting a general feel about trends by sheer observation of the marketplace
•Do in-depth research on-line, read trade journals, attend shows, even participate actively on social media (LinkedIn, Facebook, Twitter, etc.)
•Venture out and meet experts in the your industry or field of interest
•Consider counter-trends: if everyone is into burgers, perhaps consider hot dogs
•Study demographics and buying habits of various age and income groups in your region
•Realize that a tried and true franchise may seem old, but just one new item might change the face and fortunes of the franchise
•Consider your risk-aversion and risk-taking profile

When it comes to the bottom line—your bottom line—it is up to you to assemble all of the facts you have gathered, study them, face them head on.

Then decide what is best, for not only your finances, but also with regard to your personality, lifestyle, business experiences, as well, of course, what people truly want and need. In other words, select the hot franchise business that meets your needs and objectives, not just the “flavor of the day.”

Only when you match each of those parameters to the plethora of franchise opportunities, will you be making an informed decision as objectively as possible.

To help you further in your franchising quest for the “hot” opportunity is one of the expert franchise consultants with FranFinders.