Have you desired to own and run your own business but are always turned away by lack of experience, the associated high start-up costs, or even the simple fear of business failure? In such a case, perhaps investing in a franchise could be the ideal business option for you. Buying a franchise not only comes with several benefits such as ongoing support for marketing and ongoing operations, lower industry risks, and risk avoidance, but it also means you’ll be benefiting from instant brand recognition that ensures success.
However, to make the most out of franchising, you will need to sort through the noise, study key innovations and emerging technological and business trends if your operation is to become profitable and sustainable.
The Fast Growth of Franchise Operations
According to Forbes, over 400 U.S. franchise systems are operating globally. For instance, the cleaning industry in the US is one of the current top franchise establishments operating in the country. In the course of 2016, this sector is expected to continue experiencing stellar success and growth, making it a prime segment to consider starting a career as a franchise owner.
The U.S. upholstery cleaner and carpet cleaning industry is huge; with about 69,149 people employed in over 38,384 businesses. For example, the cleaning industry has been showing consistent growth, and in 2016, it is growing at 1.9%.
By far, perhaps the biggest concept that is fast taking root in the franchising sector is the strong emergence of cloud based software services. Among the major benefits of going to the cloud is that it does away with painful, time consuming on-site software upgrades and the necessary heavy maintenance that must be made by IT personnel.
Rise of Mobile Applications
Mobile apps are now available in their thousands across several marketplaces such as iTunes and in the Android platform. From the perspective of a franchiser, mobile apps have the potential of boosting the daily flow of operations. What was previously done manually and through complex system of tools and multiple layers can now be achieved via a sleek app conveniently accessible on your smartphone.
Changing Customer Buying Patterns
Rapid changes in technology and social habits are continuing to have great influence on buying patterns. The customer of today is very informed. To remain relevant franchise networks have no other alternative but to become more innovative than ever before. Whether you’re the franchiser or franchisee in a niche sector like cabinet painting, cleaning upholstery or carpet cleaning, the unprecedented advances in technology being experienced today are creating opportunities never seen before. Buying has never been easier or more streamlined like today, something that franchising can take advantage of for better returns.
Majority of the emerging cloud-based services are presenting franchises with innovative ways of automating processes such as hiring and outsourcing. Automation will not just make businesses more efficient, but will also promote better personal tracking, enhanced collection of tax credits, and perhaps most importantly, boost the bottom line through efficiency and improved productivity.
Changes in Ownership and Brands Merging
Globally, brands mergers and franchise networks ownership changes have become the order of the day. This has the potential of creating insecurity and confusion in franchisees already in long-term agreements with one leadership group or brand, who may now find themselves in the hands of a completely new regime. In such situations, strong leadership is needed to provide certainty of direction and stability of the operations.
Technology is constantly changing as new tools and trends continue impacting the way businesses are being run. From the rising prominence of automation innovations to the cloud, to explosion of offering via mobile, it requires alertness to keep track of the changes. Like any other sector, franchising brands too are witnessing major changes that are not just playing increased roles, but greatly affecting Return-On-Investment and profit margins. For any industry to remain relevant, keeping abreast of the latest technological changes is not only important, but a must.