As I read about what is happening in the world of franchising, it is always interesting to see who is expanding or not. I love those articles that highlight new strategies and the “risky” franchises. I’m a risk taker. I love a challenge.
In February, the Wall Street Journal released the worst and best franchise brands based on SBA loan performance in 2008. We all know there are many factors that impact a business’ success. Yet, as more people decide to buy a franchise this year whether from being recently unemployed after years of service, not having the option to retire, or simply being ready for a challenge, this could be a good list to review. For more on this list and blue maumau’s list, click here.
On the list of best brands that caught my eye was Massage Envy. It can also be found on Entreprenuer’s Top 106 Franchises in 2009. For this complete list, click here.
I was surprised to find they have over 20 locations here in Colorado. I’ve been getting their postcards for months. I am certainly their market, and I LOVE going for a massage. The price is affordable and they are nearby. However, I have not gone. Why? This could explain why we typically see direct mail results around a one percent response rate. As you know, you need the volume and repetition for a successful direct mail campaign.
So, how can new franchises stay off the worst list and not only reach their market but get them to respond so they can pay off their SBA loan? This is the million dollar question.
Don’t just take a risk and believe in the potential without a solid projection and plan. Do your research. Know your market. Dedicate resources to marketing and public relations in a variety of channels. Network. Ask your customers. And, most importantly, track your results.
That is what Massage Envy first-time franchise owners David and Anne Glover did. Now they own four franchises. For more about their risk assessment when selecting a franchise, click here.
Are there any on the list that surprise you?
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