Buying a franchise to start your own painting business is a terrific idea. Instead of being another nondescript entity on the market, you get to ride on the popularity of a parent brand. That makes it easier for you to convince a potential market to retain your services, as they are already familiar with the brand.
Due to the delicate nature of the project and the costs involved, homeowners are wary when dealing with unknown entities. Instead, they would rather deal with a company that has a proven track record. Here are some proactive measures to ensure that you are joining the best company:
Go deep on market research
Buying a franchise is likely to set you on spending from $40,000 to $200,000 depending on the company. That’s no chump change, and you need to be sure that you have a more than an average chance of success going in. That’s where market research comes in.
Market research gives reliable info about the needs of the market. You will have an idea how much an average painting contract is worth in your target market. Most importantly, it lets you know if there’s a sufficient market to sustain your business, offers a chance of growth and expansion, and gives you a clue about what kinds of jobs are available on the market. Are they mostly home remodels or are there new buildings coming up in the area?
Figure out the competition
It’s only natural to expect that there are other players established in the sector. You need to identify them and figure out how much of a threat this competition poses to your new business. Look at the projects they handle as well as their reputation on the market.
You don’t necessarily have to beat them, but at least know how big is the section of the market they control and their best-selling points. In such cases, you need to get creative with your client acquisition strategy. You need to have that figured out before committing to buying a franchise. It’s also helpful to identify the gaps in the market that you can exploit.
Establish the popularity of the franchise
If you’re joining a well-known brand, try gauging its popularity in your target market. One of the most significant advantages of joining a franchise is that you get to ride their reputation when recruiting customers. In a tight market, that might prove to be a high selling point. Gauging the target market’s attitude towards a brand can help you make an informed decision.
In instances where a large player dominates the market, riding the coattails of a large and successful brand can give you an advantage. Part of the revenue you pay to the parent company goes toward marketing and advertising. To this end, you can go head-to-head with large and well-established companies without overspending on adverts.
As with any investment, buying a franchise requires you to tread carefully. You need to be sure that you’re making the right choice, meaning joining a company that will propel you to great heights of success. To harness the advantages that come with being part of a popular brand, you must do your due diligence.