With the recent data showing the number of people participating in sports activities increasing, sports franchises are experiencing success. Individuals need a way to spend their leisure time that will help them to relax. There is also a huge need for fun, exciting ways to combat obesity trends amongst adults and children.
If you’re looking to become a part of this profitable growth industry, here are some important steps to take:
• Decide what kind of sports franchise you want to start. There are many attractive options available to potential franchisees, so you’ll have to research which area is trending upwards in recent years and determine which type of sport will still hold your interest for years to come.
o Golf / Yachting – There are several options for these luxury sport franchises, including golf retail franchises, golf services franchises and yachting franchises. These franchises provide an opportunity to target popular leisure markets that have had a consistently rising demand.
o Children’s fitness – With childhood obesity at the highest levels in history, parents are looking for the best solution to the problem. Healthy eating coupled with fun fitness activities are the best solution, and you can be a part of this very important and very lucrative market.
• Talk to the franchisees. To get a better idea of what it’s like to own a sports franchise business, talk to franchisees that are currently running one. They can give you the details on what it’s like to run it, how much time they regularly devote to their business, how much support they get from the franchisor, and what kind of earnings to expect in the first year. There’s no better way to get insight into a franchise than to ask someone who’s in the position.
• Write a business plan. If you’ve picked out the right sports franchise for you, asked franchisees about their experience and determined the answers are positive, then you should commit to the franchise. You will need to start by writing a business plan that outlines exactly what the franchise will do, how much you expect to make and how you expect to obtain this money. The business plan is a must-have when you apply for a loan at a bank or with alternative investors. It shows that your franchise has a likelihood of success and is not just a shot in the dark; this makes it more likely you will be able to obtain the funding to start your sports franchise.
• Make sure you have enough for the investment. Often, a franchise will have an initial investment fee that you will have to pay to get the rights to the brand and the franchise package. However, there may also be some working capital requirements. Keep that in mind when you choose your new franchise and make sure you can afford the franchise you’re buying into. You don’t want to be stuck in a sticky financial situation in the future.
• Determine the territory/location of the franchise. When starting a sports franchise, the location of the franchise is one of the most important decisions you will make. In this case, having an exclusive territory will benefit you, as you can claim a bigger market share with your franchise. Do some market research to make sure there is demand in your area for the kind of services or goods you will be selling.
• Market your sports franchise. Your franchisor should have an advertising and marketing campaign already in place to help promote the brand both nationally and in your area. You can also engage in local marketing schemes in order to get the word out. Children’s fitness franchises can advertise in schools and community centers in the area and retail golf franchises can target golf courses as a place to advertise their stores. Direct mail marketing and word of mouth are also very effective ways of advertising a new business.
• Start building your future! Once you decide which sports franchise you want, obtain the funding and market your opportunity, you can really begin building your future. Franchisors will provide you with all the training you need to be up and running from day one, so expect to hit the ground running.