Building a Franchise Portfolio: The Best Franchises to Add
As an aspiring franchisee, you may consider several options for your future business and building your franchise portfolio. With many franchises available today, knowing which will be the best fit for your skills and interests can be challenging. Think about what you’re good at, what you enjoy doing, and what you can see yourself doing daily for the next several years. These are all essential factors in determining if a franchise is a good investment for your future. That said, not every franchise is suitable for everyone. If you want to build a successful franchise portfolio, here are some things to consider.
What’s your area of expertise?
Think about what you’re good at and where you have experience. If you can leverage your specific set of skills as part of your franchise business model, you’ll be able to bring more to the table as a successful franchise owner. Keep in mind, too, that you don’t necessarily have to have experience within the industry you’re looking to invest. Reputable franchisors will have a solid training program to make sure you’re set up for success when you open your business. However, having previous experience in managing a business or team will prove to be helpful.
One important note: don’t discredit your passions! If you’re looking for a business that ties into something you’re zealous about, it could be a great investment for you. Feeling excitement for the product or service you offer will make the business that much more enjoyable to run – meaning you’re more likely to stick with it.
MY SALON Suite looks for enthusiastic franchise candidates with previous business experience and a passion for the industry. If new franchisees have the drive to succeed and the knowledge to take advantage of the built-in franchise support system, they’ll have the tools they need to be competitive in this highly profitable market. MY SALON Suite offers franchise partners in your region that you can reach out to anytime for support.
Franchises with low operational costs
Looking for franchises with low operational costs could be a great way to diversify your franchise portfolio without breaking the bank. This can be helpful if you are a first time franchise owner with difficulty predicting your monthly cash flow. You can use operational cost data from your franchise to help predict your costs and prepare your budget accordingly. You also want to ensure that these costs are consistent across different franchise locations, which will help you predict your monthly fees more easily. During the franchise discovery process, you’ll have the opportunity to meet with existing franchisees to ask questions. Be sure to ask about operating costs and break even so you can get a better idea of business expenses.
Franchises that have built-in marketing support
While starting a franchise is undoubtedly a marketing opportunity in and of itself, looking at a turnkey franchise with marketing and advertising support can be a game changer. A built in support system can help you get your business off the ground quicker, as the corporate team will be focusing on promoting the brand as a whole while simultaneously helping you promote your individual location.
Franchises with high growth potential
Depending on what kind of business you choose when looking to diversify your franchise portfolio, it can be helpful to look for one with high growth potential. If you are interested in a franchise, you‘ll want to make sure to conduct your own research of the industry to understand its forecast. Most franchisors will provide you with information related to their expected growth. And if they don’t, it’s wise to ask directly what their growth projections look like.
The beauty and personal care industry is projected to see incredible growth worldwide and within the U.S. Currently, the market is worth $534 billion worldwide and is expected to grow at a compound annual growth rate (CAGR) of 5.86% from now until 2026 – ending with a value of $670.43 billion by 2026. The U.S. is projected to hold the most market share, coming in at just under $100 billion in revenue in 2026.
Joining a franchise within the beauty and personal care market – like MY SALON Suite – could be a very strong addition to your franchise portfolio.
MY SALON Suite: Your Next Portfolio Addition
The industry is growing, and our franchise footprint is expanding right along with it. For investors looking for a semi-absentee business model without the headaches of payroll, MY SALON Suite could be a great investment opportunity for you.
Our franchise partners act as landlords within their salons, renting rooms to new entrepreneurs looking to get their beauty business off the ground (much like you!). Franchisees are required to maintain their salons, recruit members to fill any open rooms, and collect rent from those already under contract. Many of our franchise owners only work about 10 hours a week! Once their locations are established, our owners are able to enjoy retirement, manage other businesses, or even continue working their full-time job.
Franchise candidates should have a net worth of $1 million and $500,000 in liquid assets. To learn more about the MY SALON Suite franchise opportunity, fill out this form, and one of our representatives will be in touch.