Find a Niche That Solves a Problem

Another advantage of good target audience analysis is finding a niche that isn’t just discretionary but a necessity for your customers. Like screen doors or gelato in warm areas, insulation or roofing in cold or wet areas, or phone repair anywhere. The good thing about franchising is that you don’t have to come up with the winning idea on your own, your own research into possible niches combined with your target audience analysis should give you a shortlist of potential franchises. From there, your franchisor will be able to help you with the various business systems and products you’ll be delivering to customers.

Identify the Competition 

Along with your target audience research, you should also investigate how much competition exists in that niche in your area. Some ideas might be an excellent fit, but several other companies might have got there before you and established their presence. That’s not to say the business still wouldn’t work, but it’ll be a tougher ride than stepping into a niche with high demand and low competition.

Look for Niches with Long-Term Potential

The best franchises are ones that stick around for a while, and as a prospective franchise owner, you want the security of being in a niche that’s going to last. Sure, plenty of places spring up selling bubble tea or other trend-of-the-day products, but you have to ask yourself where the business will be in five or twenty years. This is especially relevant if you’re taking out financing, as the financial institution will want guarantees about your long-term ability to repay. Of course, a recent trend could be the start of something big that you’re getting on the ground floor, but it’s always good to take a long-term view into consideration.

Find a Niche People Know

Marketing strategy is a major part of whether your business will succeed or not because, without knowing who you are or what you’re providing, it will be hard for customers to engage with you. These marketing efforts will be helped significantly if you’re going into a niche or opening a franchise that people already know. Being a franchise means that you will already be working under a known brand name, while a franchisor will also be able to pool resources to carry out state or national-level marketing, which would be beyond other small businesses.