Target a Narrow Customer Base for Franchise Success

Most franchisees believe that a business that appeals to as many people as possible is the surest path to success. While one can find plenty of validation for this model — who doesn't love a Baskin-Robbins

For starters, limiting the scope of your franchise will provide you with market separation and a way to distinguish yourself. You'll also likely be offering a unique service to an underserved population.

There are two concrete advantages to launching a franchise that sells a particular product to a specific subsection of the public:

Advantage #1: Less competition
Most beginning franchisees are after the same thing — seed money. Securing the necessary funds to start a franchise can be an agonizing experience, no matter how linear and well-presented your business plan. One thing investors and banks love is specificity. Most franchisees think in the most general terms possible, which investors see as financial risk. By focusing on a particular and specific customer base, you’ll have much less competition; if you can prove a demand for your product or service is there, obtaining the proper financing will be that much easier.