The Market

by Simon Lord

last updated 13/05/2011

new franchisees willing to move for

by Simon Lord

last updated 13/05/2011

A survey of visitors to the Franchise New Zealand website has revealed that 74% of those seriously interested in buying a franchise would be prepared to move to another location for the right opportunity.

North Island city residents were most interested in moving, with 78% prepared to consider a move (saying ‘Yes’ or ‘Maybe’). Those least likely to move were those living in South Island townships or rural communities, with almost 60% saying a firm ‘No’ to the idea.

The strongest positive came from South Island city residents with 48% answering a firm ‘Yes’ – perhaps not surprising, given that the February 22nd earthquake fell in the middle of the survey period.

Good Reasons to Move

The idea of moving to another area to start your new business may appeal for a number of reasons:

1. If the franchise that you are interested in already has a franchisee operating in your area, by moving you can still have the business that you want. The alternatives are to choose a different business, to wait until the local franchisee is ready to sell, or to give up on the idea altogether.

2. If you are prepared to move, you may be offered a better choice of locations or sites by the franchisor. They may even have a particular site available already and be looking for the right person to take up the opportunity.

3. If you are serious about building a good business, you might be able to get into a larger or less-developed market. That can make moving the smart thing to do.

4. If you want a change of lifestyle or to move closer to family, buying a franchise can offer more options than looking for employment.

5. If you have had to stay in one particular area because of work, buying a franchise gives you freedom to live in many other places.

6. If you have lived in a city, selling your house and buying elsewhere can release some of the equity in your property.

The Downsides

At the same time, you need to be aware that there can be downsides:

1. The support of family and friends can be a significant factor in how happy – and how successful – you are in your own business.

2. Some franchises work best when the franchisee already has a network of local contacts. Starting up afresh can be more of a grind.

3. In general, the better you know an area, the better you can market your business within it.

Having said that, there are many examples of franchisees who have moved to new towns and established flourishing businesses through their own efforts to get to know all the locals. As always, it comes down to your own needs, desires and determination to succeed.

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