Choosing Your Ideal Industry

By Pamela Gold

You've decided that you're ready to buy a franchise, but the franchise community is filled with many industries and you're not sure what industry you'd like to be a part of. Get ready to choose the industry that's right for you! You'll receive pointers and we'll ask an expert for advice, and find out how he knows when a prospect has chosen the right industry.

Ask A Pro

Mike Whitten, Director of Dealer Development for Badcock Home Furnishings has a long history of involvment in the franchise community. With prior experience working for Arby's, AFC Enterprises (Popeye's Chicken and Biscuits, Church's Chicken, Cinnabon, Seattle's Best Coffee, and Torrefazione Italia Coffee), and the Honey Baked Ham Company, Mike has gained lots of knowledge over the years that he's willing to share:

What Do Companies Look For In a Prospect?

"When a prospect shows interest in our opportunity, we make sure they come to the table with certain skills we can't teach them. Interpersonal and people skills are a necessity in our business and in most businesses. We simply cannot teach those skills to new franchisees. We also look for people to have business sense. They don't need a lot of business experience but they need to have an understanding about how it all works. We can and do teach them the rest. We can teach them how to specifically run their business and we can teach them about furniture," explained Mike.

"We also profile our best and most successful Dealers. We then profile prospective Dealers and compare the profiles to determine whether or not there are similarities, and whether or not our prospects seem like they would fit in with our ideal profile or whether there are conflicts," continued Mike.

Expert Advice...

Mike stated, "You should always buy a business in an industry you enjoy and have an interest in. I believe in waking up each morning and loving what I do. When prospective business owners completely switch industries from what they were previously doing, it can be a disaster. If you haven't worked in an industry even remotely similar to the industry you're considering, you might have a very hard time and ultimately be very disappointed. Stick with an industry that is at least slightly similar to that which you already have some experience in." 

Additional Tips...

Financial Goals... Keep your financial goals in mind when you begin your journey to becoming a business owner. Different industries can "pay off" quicker than other industries and you should keep in mind that few businesses allow you to get rich quick. You will most probably have to pay your dues first. Plan ahead and you could be happily surprised.

Personal Goals... What do you want and need in life?  Are you becoming your own boss because you want to control your work hours and hope to spend more time with your family or on interests? Or, have you chosen to buy a franchise because you want the power to control your own destiny and the amount of success you will enjoy? Think about the quality of life that you desire. Is it money you seek, or more time?

"The hospitality industry is very different than the furniture industry, for example. Here at Badcock Home Furnishings, our stores are open six days a week from nine until six. Our Dealers have time for their families and interests. A franchisee in the hospitality industry can sometimes work many hours, seven days a week. It's a decision and a choice that needs to be made when deciding on an industry and an opportunity. It truly depends on the individual and their goals," stated Mike.

Some Final Thoughts to Consider Before You Buy a Business:    

When considering an industry, think about where that industry might be going. What is the long-term growth prospect of the industry? What are your long-term goals? Do you plan to buy, develop and grow, and then sell, or are you planning to grow your business for long-term ownership? Look at the industry's growth history. Is the industry stable and solid, with little growth fluctuations, or is the industry enjoying a booming growth surge? Or, is the industry declining? Make your decision based on your goals and the long-term growth prospect for the industry.

"My suggestion is to stay away from trendy and fad industries," stated Mike.

Whatever industry you choose, make sure the business you eventually buy meets your personal needs and goals. Each morning as a business owner, you should wake up and be excited about your business. Every successful business owner will agree that owning a business should feel less like "work" and more like something you truly enjoy doing.