Franchising has become an incredibly popular avenue of setting up businesses in recent years. Finding loans to set up independent businesses is harder than ever. So, franchising becomes a top choice among entrepreneurs looking to develop new business opportunities. Plus, franchising also adds some other benefits like a pre-established brand name, a strong business model, and a variety of business agreement options. Also, statistics show that about half of all new startups fail by the end of the fifth year as compared to franchises that have a 7 percent higher survival rate. So, if you want to start a business, here are the top five industries for starting a venture:
5 Highest-Grossing Franchise Business Areas for 2021
Food-service
The food franchise industry is easily the most popular of business domains in the world. During the pandemic, the demand for online food deliveries rose staggeringly. Among the most important in this arena are cloud-kitchens food franchises. These businesses are set up on a limited budget and operate based on the FOCO franchise model which ensures businesses are run by professionals for consistent profit. Most foodservice franchises are FOFO model based where the franchisee owns and operates the outlet. However, the cloud-kitchen FOCO model also offers great benefits to investors. The investor or franchisee simply invests the money or funds into the venture and adopts a pre-branded name. The company then hires and maintains the venture on a day-to-day basis leaving the investor to enjoy decent profits for their RoI. This model is considered one of the most popular franchising options in the entire foodservice industry and has been applied to other commercial food ventures as well. As such, the foodservice industry is one of the best options for starting a business in 2021.
Pet Care
Pet care services have grown a lot over the past decade. While dog spas and animal daycare were up-and-coming businesses earlier, they are among the most popular and easy to set up now. The reason for this popularity mostly lies with a high- degree of disposable income among middle and upper classes across most developed nations. Countries that have a rapidly developing economy like China and India also display similar patterns. Pet care services are now also offering a much wider array of service options. For the most part, training and daycare the primary areas. However, spa care, grooming, and general wellness have also become a very popular and profitable business vertical as well. Another reason for this popularity is that pet care online services and brick-and-mortar shops are easy to set up. Since many patrons of such establishments tend to have strong goodwill, brands can expect to grow their market share rather easily for good quality services. This enables easy scaling and a consistent profit margin.
Business Advisory
Business consultancies are a very popular franchise choice for new entrepreneurs. It is one of the most common ways to get out of a 9 to 5 job and start making market moves. There are a number of popular sub-domains in this arena including career coaching, motivational speaking in business, business consult across various enterprise processes. You can also opt for industry-specific advisories and there are plenty of franchise options to choose from.
For the most part, you need a strong portfolio to get into franchise business consulting. You will also need a host of business connections to help you expand at your own pace. One of the best things about this kind of franchise setup is that you do not need to have an actual physical store. While this can be a big credibility factor, business consultations are mostly done on-site and so, you will not need an actual office. Getting a website with the franchise brand name on it may be enough and you can even work the market from your home or via Zoom or Skype.
Home Improvement and Maintenance
Home improvement and remodeling is a very competitive but often rewarding domain. This kind of franchise is best suited for local professionals who can use contacts to leverage a brand name forward. Ideally, you need to have a decade or so of experience in home improvement. This will help in securing all manner of government licensing, insurance, and favorable contractual terms. It also enables you to get more easily into the franchise and with favorable terms with the franchisor.
As with other fields, there are many sub-domains here you can specialize in. The broadest distinction is between home interiors and exteriors and you can also go for exclusives like maintenance and repair. Most of the exclusive domains have long-running contracts so this allows for a lot of business expansion potential. Further, it is relatively easy to get into this franchise domain considering home repair, improvement and related fields are always in demand.
Educational Services and Children
Educational services offered through online channels have become really popular thanks to the growth of technology. Using various tech platforms like eDX, educators can earn handsome salaries without needing to leverage their skills in any institution. So, getting into the educational franchise field is a highly profitable prospect provided you have the necessary skills and experience. Since these fields usually require a government certification or accreditation approval, you should also know how to secure those. Generally speaking, the franchise would help in this part while you provide your educational expertise through them. This enables you to expand business prospects without needing to focus on it outside of your actual professional education domain. The most popular franchise domains for education services include vocational training, highly specialized STEM fields, and job-related company-sponsored training modules.
Should You Opt for a Franchise Business in 2021?
Building up a franchise business is a very smart idea in 2021 considering the many benefits you get. Aside from the already established brand name, you also get a well-defined business model, long-term support from franchisors, and related market goodwill. If you have wanted to start a business, a franchise might be the perfect way to get going on it. Invest now in The Rolling Plate’s food franchise enterprise and join India’s fastest-growing cloud kitchen business right now!
Also read:
