Franchises are hot right now. But if you’re looking at options, how can you tell which businesses are up and coming so you can capitalize on growth opportunities? The key is to understand consumers’ motivations for spending. For example, with the rising number of dual-income families, people have less time – or desire – to cook meals at home so they eat out more, making restaurants a popular franchise choice today.
According to the Small Business Administration, here are a few ways to spot trends:
- Online: Internet research is a great place to start. With just a few clicks, you can access statistics on consumer spending, demographics and even trends, enabling you to identify patterns in the data to help you determine good franchises opportunities.
- Social Circles: One of the best ways to hear about trends is to pay attention to what people are talking about. What are they doing and where are they going? Their conversations may reveal popular businesses they’re frequenting.
- Work: Your colleagues can share opinions about office challenges and what solutions they’re using. But you’ll hear about more than just work-related issues so pay attention to what they say about how they’re spending time outside of the office as well.
Spotting trends isn’t an exact science, but with a little time and effort, you’ll likely be able to identify “what’s next” in franchises.