Assessing Your Market Research
Upon completion of your competitive analysis, you should have an emotional sense of the impact of the research. Were you so overwhelmed that the idea to franchise has fallen apart? Does the idea of competing drive a stake in the heart of your plans? Or were you motivated to take the next step because your concept has a “place” in the franchising industry to which your business belongs?
People are your best resource to drive these answers home. You will have a tough time finding franchisees if your market research indicates that people don’t care too much for what you have to offer. Remember, just because you launched a successful independent business doesn’t mean that the same business will work in towns and cities across the country. What will make it successful is if it has a unifying appeal.
Franchising is about the masses. Quality does play a role in this venture but your product or service cannot be so “exclusive” or “untouchable” that the masses will not embrace it. A successful franchise system offers products and services that the masses can appreciate with enough build-in quality that will not lead to mass rejection. For example, look at the Big Mac. What makes it so appealing to millions of people? It’s definitely not its healthy ingredients. This product has a unifying appeal because a) there are millions of fast-food eaters in the United States (quantity) and b) a Big Mac in Detroit, Michigan looks and tastes like a Big Mac in Topeka, Kansas (quality).
When you combine “quantity” with “quality” – which in franchising is also known as consistency – you have the makings of a franchiseable product or service. These are just two factors in the competitive grid. The more factors you can identify and position your business model into when compared to other franchises, the more viable a franchise system becomes.
Are You Ready to Move Forward?
So, if your ma and pa shop has to send customers away because you can’t keep up with the demand, it is possible that you could have the same success in twenty, fifty, or even a hundred locations nationwide. But ask yourself this: will a customer in Augusta, Maine react the same way to your products and/or services the same way your local customers do now? Only your market research can help you answer this question. Does your business offer products and/or services that have unifying appeal? And if not, can they be modified to achieve this appeal?
Upon completion of your market research, the data uncovered will give you a better sense of how well your business concept can compete in wider circles. Should you eventually launch your franchise system which offers products and/or services that have unifying appeal, you should not have a problem finding people who will want to become a part of it and invest in it – your franchisees.
You have a long way to go before your franchise system is ready for the marketplace. Once you have completed this first stage and gathered as much information as possible from your market research, you now have a foundation for your franchise development plans. As you build your system, you will need to reference the findings from your research to lay out the subsequent stages of development.
