Wednesday, March 31, 2010

Franchise Opportunities

Franchise And Work At Home Opportunities
Posted by Jack Andee as Financial

All franchises & work at home opportunities can be analysed for both expansion and profit potential using very easy rules. These rules apply if you are starting an enterprise on your own or considering investing in a franchise opportunity.

The best golden rule in business is to analyse the market place that you’ll be contemplating to enter. Is it a declining market or is it growing? Is it becoming more competitive or less? Is it forecast to grow or decline? The same rules apply when you’re considering investing in a franchise opportunity. What forces are at play in this segment?

I want to assume that you will be thinking of entering the retail trade and specifically mens’ clothing.

By examining the market or commissioning survey you will quickly find that the segment is extremely tough indeed. Average retail prices when taking inflation into account have actually fallen in real terms. Average cost prices haven’t fallen so quickly. Margins are now being squeezed. Average spending power has actually increased so certain highly specific segments within this segment could still hold their own.

The growth in mail order and online shopping for these products has risen over the same time. Supermarkets have entered the field and now hold a significant market share. The quality of imported goods has now reached the standards of some inferior brand names.

All the above should sound alarm signals for anybody considering entering this business segment. So the first golden rule in business is to enter a growing market segment where profit margins have not been already squeezed. In reality the opportunity was already exploited. Again if you are contemplating investing in a business franchise in this segment I would advice you to think twice.

A rapidly rising market segment is to supply health care, holidays, specifically designed products and other services to the elderly. In the last 50 years the rate of growth of the over 60s has exceeded any other age group. Their disposable incomes have risen simultaneously. This really is forecast to nurture even further as better understanding of health risks, improved medication and exercise facilities enable the population to live longer.

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