Favorable franchises for a small town: how to choose and what to look for

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Today, many people dream of doing their own business, which will bring a good income every month. But the question arises, which niche is better to choose for this. Every year more and more start-up entrepreneurs prefer to start a business not from scratch, but through a franchise. And this is not surprising, because this method of investing financial resources has many advantages. By purchasing it, you not only legally use the brand name, but also get a fully working system, as well as professional information support, assistance in positioning the business in the market and advertising campaign, a well-established network of suppliers and many other advantages.

However, having decided to purchase a franchise, you must understand that you do not have a 100% guarantee that the investment willprofitable. You need to be very careful in choosing the niche in which you plan to work. This is especially true for small towns, where the standard of living of the population, as well as the demand for goods and services, is much lower than in megacities. To help you in this difficult matter, we will consider in the article the top franchises for a small town that will allow you to build a stable source of high income, and also talk about all the nuances of such investments.

Business prospects in provincial cities

Let's take a closer look at this. Before looking at specific small town franchise ideas, let's first look at whether or not to start a business in the regions.

Among the main advantages in favor of this are the following:

1. The main item of expenditure in any type of entrepreneurial activity is the rental of premises. In settlements and cities with a low population, it is much lower, so a large investment will not be required to start.
2. The level of business development in the regions is relatively low, so the competition here is low and it will be much easier for the enterprise to survive.
3. The wages are low, which has a positive effect on the company's profitability.

As for the minuses, then, unfortunately, they also could not do without them. These include:

1. Low wages have a negative impact on purchasing power, which should definitely be taken into account when planning to do business.
2. Consumers need to be offered only the best products with high quality and affordable price.

It is worth noting that the shortcomings are insignificant, so the prospects for opening and developing a business in the regions are quite high. However, today there are various low-cost franchises for a small town, which will be discussed a little later in this article.

Why is a ready-made business better than starting a project from scratch?

So what do you need to know about this? If you want to start a business with minimal investment in a small town, then it is better to consider acquiring a franchise than starting a new venture on your own.

The reason for this is as follows:

• small initial investment;
• no need to develop and set up a workflow, because you get a ready-made system;
• brand awareness in the market;
• minimum investment in promotion;
• full information support and assistance in resolving any issues;
• a detailed description of the product and its potential buyers;
• quick breakeven.

Given all of the above benefits, by buying and operating profitable small town franchises, you minimize almost all risks and can be sure that you will return the invested funds in full and will receive stable profits in the future.

What factors to consider when choosing a business idea?

What it costspay attention first? Cities with a small number of people are very specific, so doing business in them, on the one hand, is more profitable, but on the other hand, it is more difficult than in megacities. In addition, as mentioned earlier, not all options will be promising. When choosing the most interesting and profitable franchises for a small town, you should definitely take into account many nuances, the most important of which are the following:

• demographic data;
• level of solvency;
• geographic location;
• Climatic conditions of the region;
• level of tourism development;
• cultural and social preferences of residents.

Market research will take a lot of time and effort, but even in the case of franchises, it is mandatory. Having a detailed understanding of the economic situation of the settlement and its other components, you will be able to select several of the most promising options and choose the best one.

At the same time, you should also take into account the fact that the needs of residents of small towns are practically no different from those from the capital, but their financial capabilities are different, and therefore there is no point in offering them expensive goods and services. Therefore, in order not to make a mistake with the choice of the type of activity, you need as much detailed information as possible about the place where you are based.

Most promising destinations

If you do not have a large authorized capital and youIf you are interested in a franchise with a quick payback, then you should be very serious about choosing a direction for entrepreneurial activity. The thing is that not everything that brings big profits in megacities will work in small provincial towns.

Among the most promising areas are the following:

• cooked food delivery service;
• grocery stores;
• pharmacies;
• car service and tire fitting;
• clothing and children's goods stores;
• barbershop;
• pawn shops;
• thrift stores;
• service centers;
• catering establishments;
• nightclub;
• bookmaker.

When choosing a specific niche, you must consider the demand for a particular type of activity and the level of competition. If there are already many companies operating in your chosen industry, then it is better to look for something else, since business survival is much worse in small settlements.

What better to give up?

Talking about what profitable franchises for a small town are on sale today, one cannot ignore the types of business that represent not the best prospects for getting started. They are determined by the individual preferences and lifestyle of the inhabitants of provincial settlements.

Firstly, franchises whose activities are related to goods and services of the "luxury" category are automatically eliminated immediately. This is due to the low income level. Residents of small towns are not readybuy expensive things, as well as dine in restaurants. Secondly, a loss-making solution would be the sale of exotic goods imported from abroad. And thirdly, some losses will be brought by the provision of non-specific services. For example, you should not even consider opening a tattoo parlor, a men's hairdresser, and so on.

Earlier, we talked in detail about why it is much more profitable to launch a ready-made business than to open it from scratch, what are the advantages and disadvantages of this, and what nuances should be taken into account. Now it's time to answer the question of which franchise to choose for a small town. Next, we will consider the most interesting offers that exist on the market today.

Food service, fast food and food production

What is the peculiarity of this type of business? People want to eat anytime, anywhere, no matter where they live. Therefore, it is not surprising that the catering sector is the leader in provincial cities. For example, a bakery franchise is a good investment option. This is due to the fact that every person buys bread and other bakery products every day. In this area, the most favorable conditions are offered by Dobropek. Its cost is only 500,000 rubles, and reaching the break-even level takes from 5 to 18 months. This network is the largest in Russia, which bakes bread according to its own unique recipe. All products are made exclusively from selectedhigh-quality ingredients, so it has a unique taste, for which it is loved by millions of consumers across the country.

If you don't like the bakery franchise, then turn your attention to the chain of cafeterias "Baby Potato". These establishments serve a variety of potato dishes at very affordable prices. Every day, many visitors come here to eat quickly, tasty and high quality, so you are guaranteed a constant influx of visitors. The lump-sum fee is 480,000 rubles, and the amount of roy alties varies from 5 to 6 percent monthly. At the same time, the seller promises that after 1.5-2 years all investments will fully pay off.

Another good option is to buy a Fork-Spoon restaurant franchise. These establishments offer a large selection of hot and cold dishes from traditional and modern Russian cuisine. The establishments have a pleasant unobtrusive interior, which is somewhat reminiscent of a home environment. The entrance fee is 900,000 rubles, and the amount of monthly deductions for the right to use the brand name and proprietary technologies is 3-5%. According to the seller, each establishment, regardless of the region, brings in at least 3,000,000 million rubles of revenue every month, thanks to which you will start earning very quickly.

Food Delivery Service

The life of a modern person is very busy, so many of us have absolutely no time to satisfy basic needs and requirements. Thus, considering the most profitable franchises for a small town,you should definitely pay attention to companies that provide ready-made food delivery services.

The Wok&Box franchise is very popular and in demand today. It provides consumers with the opportunity to order Chinese and Italian dishes directly to their homes at an affordable price. The lump-sum fee is only 120,000 rubles, which is quite cheap compared to many other offers. In addition, every month you will have to pay the seller 2.5 percent of net profit.

Less popular, but also promising is the Out of the Country franchise. Companies operating under this brand are engaged in the delivery of exclusively home-made food, which will certainly be appreciated by residents of provincial cities who are not accustomed to luxury and haute cuisine. The initial payment is 200,000 rubles, and roy alties are 3% of the turnover.

Trading

Good conditions for cooperation in the field of sales of goods and services are provided by the company "Jeans. Superprice". Franchise stores in a small town are well recognizable, so sales volumes are always kept at a high level. As you might guess from the name, the main assortment is jeans of various sizes, designed for representatives of any age category. This option will be ideal for those who want to do business, but are limited in financial resources, since there are currently no lump sums and roy alties for this project. The only thing you have to spend money on besidesthe main items of expenditure is a one-time advertising fee of 15,000 rubles.

Also a very interesting option is the "Magic Book" franchise, which provides the opportunity to open a store selling children's goods such as literature, coloring books, educational toys and much more. Its cost is 45,000 rubles, so a large amount of money is not required to start a business.

Magnet is the best grocery store franchise for a small town. This company is a huge retail chain of the federal level. The offered assortment is food products of domestic and foreign production. Many consumers choose Magnit because this network offers a wide range of products at one of the lowest prices on the market. Despite the relatively large amount of the minimum investment, which is 5 million rubles, the investment, on average, fully pays off in one year.

Medical Services

People are constantly exposed to various diseases, so they are periodically forced to seek medical help. A promising franchise for a small town in this area is Citylab. Laboratories operating under this trademark are open throughout Russia. They provide a wide range of medical services. The cost of the franchise package varies from 50 to 200 thousand rubles, and there is no monthly roy alty. At the same time, the seller assumes obligations for training and profession altraining of hired personnel, which is very convenient, since you do not have to look for experienced nurses on your own and you can start working right away. In addition, some packages include free shipping on high-quality consumables.

The CMD Diagnostic Center has a lucrative small town franchise called Mini. It is focused on settlements in which no more than two hundred people live. The entry fee is 100,000 rubles, and the break-even period is only eight to nine months.

Conclusion

This article reviewed the most attractive and promising franchises that will allow you to run a profitable business with minimal financial investment. Which one to choose is up to you. Most importantly, do not forget to take into account the characteristics of a particular region and the level of competition. But as the statistics and financial statements of entrepreneurs working on them show, investments quickly pay off, and enterprises quickly begin to bring stable profits. Never be afraid to take risks! After all, if you do not start doing anything, then it will not be possible to know the result!