It can be a long road to open a franchise business, so you want to be sure you are on the right track from the beginning. One of the first big decisions you will face is choosing the industry where you want to invest. Some entrepreneurs prefer small businesses in industries they are familiar with, and others want to branch out into something new.
Likewise, some franchisors look for individuals with industry experience, while others focus more on business acumen and personal traits. But ultimately, you can have a successful business in whatever industry you choose.
Here are some of the pros and cons of buying a franchise in an industry that you have experience with.
Pros of Choosing an Industry You Know
If you have industry-specific experience, it can certainly help you run a successful business. Here are some of the ways it can benefit you.
Familiar with the Market
One of the most important aspects of launching a new franchise location is marketing. In a senior care franchise, for instance, healthcare experience can be a benefit because you already understand the needs of older adults.
If you know the industry, then you know your target market and understand their short- and long-term challenges. This knowledge can help guide you as you make business decisions and plan for day-to-day operations.
You also know how different systems operate within the industry. You know the lingo and how to speak to decision makers. You can leverage this knowledge to help you in your marketing efforts to gain new clients.
Established Connections
You may also have contacts and existing relationships with key decision makers as a result of your experience. These connections can help you get a foot in the door as you market your new products and services. They may also be able to help you establish new relationships with other influential individuals in the industry.
While face-to-face networking and relationship building may be dying out in some industries, it continues to be an important part of building a business in other industries. For example, relationships are extremely valuable in the home care industry, where many client referrals come directly from hospitals, home health care, and hospice companies.
Operational Knowledge
If you have operational experience in the industry, you will be more prepared to open your business. Your experience will help you understand the business structure and challenges to anticipate. Ultimately, you will be able to ramp up operations faster than someone without experience because you know what you need to do.
Of course, your franchisor will still provide training to help you get started. But this franchise training program will build on what you already know and help you refine your skills.
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Cons of Choosing an Industry You Know
If you are considering buying a franchise in an industry where you do not have experience, don’t worry. It can actually be beneficial to NOT have industry experience. And here's why.
Restraints
If you have lots of experience in an industry, you may feel like the franchise system is holding you back. Franchise owners must adhere to set guidelines and brand restrictions. It's just part of the franchise agreement. You may find yourself wanting to do things your own way, which may actually be in violation of your agreement.
However, by joining a new industry, potential franchisees will have to rely on the expertise of their franchisor. It can be easier to accept their methods instead of trying to go at it on your own.
Bad Instincts
In most cases, a franchisor wants to find owners who have experience in business, in management, and in making good choices. Having experience in an industry does not automatically qualify you for franchise ownership in that same industry. You could have a wealth of experience but still have terrible instincts for business.
It is often more important for franchise owners to have good instincts, critical thinking skills, and the drive to succeed. These personal traits can outweigh a lack of industry experience.
Lack of Opportunity
Just because you know an industry well does not mean that it will make a suitable business investment. For example, maybe there are high barriers to entry, lots of competition, or lack of availability in your area.
New business owners should focus on industries where they can leverage their skills and make money. After all, you need to make enough to cover your start-up costs, like the franchise fee and other initial investments. Not all industries have the same opportunity.
RELATED CONTENT: Financial Benefits of the Senior Care Industry
Could Home Care Be the Right Fit?
At Caring Senior Service, we don't focus on industry experience and instead look for personal attributes. We look for individuals who are passionate about serving their community and helping others. We want our franchise owners to demonstrate determination, because the home care industry isn't always an easy one.
Many of our owners come from industries outside of home care, in fact. Many had a personal experience hiring a caregiver for their own loved one or struggled to find the care their loved one needed. These personal experiences gave our owners the desire to work in home care and help seniors in their community.
If you might be interested in home care but don't have experience, do not be discouraged! Your passion and drive are much more important to your ultimate success in any field. Reach out to our team today to learn more about what it takes to be successful in home care.
