Determining Your RIGHT Target Market

We’re in a very different economic environment today, different than ever before. Beyond that, most experts have said that even after we pull out of this recession, what we used to regard as "business as usual" in normal times, is forever gone.

According to Ron Feldman, CEO at Siegel Financial Group and RetroTax franchisee, one issue affecting the franchise development community is that as a whole, it doesn't fully understand some of the implications of current financial and market situations, relative to the selection process. From the perspective of industry/geographic issues, the food sector in particular, is suffering from a moratorium of sorts, by many lenders. Ron also says that areas that have been hard-hit by residential real estate problems are being looked at negatively by franchise lenders as well. Unfortunately, many of these are also areas that franchisors have targeted for growth and development.

In this economic climate, now more than ever, franchisors must focus on the RIGHT development strategies.At RetroTax, we look for franchisees in markets where there are opportunities for their clients to benefit from both geographic as well as demographic tax credits.

Whatever the product or service offering, franchisors in this new climate should only be developing in markets that provide the very best opportunities for an operator’s success. There is just no longer room to give “iffy” markets a try.

While development strategies may vary from market-to-market, the line must be held on the quality of the candidates being considered. At RetroTax, franchisees can be successful in either urban or rural markets, so long as those markets are zoned for geographic, as well as demographic tax credit opportunities. The franchisee's skill sets though, remain the same, in either circumstance. That said, franchisee selection should be as strict as market selection. We, as franchisors, must set the table and provide our best candidates, with the best market opportunities available, in order to achieve success.

Begin with the end in mind. Know where to grow and who to grow with. Consider nothing short of the best applicants for your brand, properly calibrate and manage expectations, both theirs and yours, so that all are in alignment. While this environment is certainly challenging, opportunities still abound for those who are willing to work hard and smart and make some necessary adjustments.