Like any business venture, the location of your storefront is vital to the success of your business. It is a balancing act to find the right franchise territory. If there is too much competition, you will have a hard time buying market share. However, if there is not enough competition, then there is a question of whether your services are even needed.
Finding the right market takes more than just looking at competition and population growth. Proper franchise territory mapping looks at a number of factors, including unemployment rates, the number of local businesses, hiring culture, and more, to determine the right area for your business.
Learn what makes for a solid territory and how partnering with franchise brands like AtWork can save you time and hassle when determining your business location.
8 Key Indicators of a Strong Franchise Territory
When contemplating how to choose a franchise territory, there are a few different elements to consider. The most successful staffing franchise owners evaluate a mix of factors that affect both client demand and candidate supply. Here are eight indicators to help you assess the strength of a potential market:
- Population trends and growth: Markets with growing populations typically have more employers and job seekers. High-growth areas tend to have expanding industries and businesses – meaning more job opportunities.
- Industry mix and market demand: Certain cities are hubs for specific industries. Understanding your region’s industry mix helps you tailor your staffing services to meet local demand. Additionally, you will want to focus your territory search on markets where your interests, experience, or network can give you a competitive edge.
- Employer density: Consider markets with a lot of small to mid-sized businesses. Companies with only 20 to 200 employees tend to rely on staffing agencies to help them fill any available roles quickly and efficiently.
- Job growth rate and unemployment trends: Job growth is a direct sign of hiring demand. Fast-growing cities are likely to have more job opportunities than stagnant areas. These expanding markets are ideal for staffing agencies. Look, too, at any unemployment data to see if employers are struggling to find talent, as this can be another opportunity for your agency.
- Competitor landscape: Some competition is a good sign – it validates the demand for staffing services. But markets that are overrun with national chains or local agencies can be more challenging to break into. Try to find underserved areas where you can truly stand out.
- Hiring culture: Not every city has the same hiring process. Some rely heavily on staffing agencies, while others use connections and relationships to bring on new people. Reputable franchise brands like AtWork provide territory-specific insights to help you understand local hiring behaviors and decision-making processes.
- Talent pool characteristics: Look at the education levels, skills, certifications, and employment status of the individuals in your market. An area with a high number of skilled professionals is ideal for your staffing agency. A strong candidate supply makes it easier for you to place people in roles, leading to higher client satisfaction.
- Cost of living and wage expectations: Understanding the local cost of living helps you anticipate wage expectations – both for candidates and clients. While markets with higher living costs may offer better margins, you will need to weigh this information against your pricing strategy to determine if the territory fits your financial goals.
Get Started with AtWork
If you are considering a staffing franchise opportunity, remember that prime markets do not stay available for long. Fortunately, with AtWork, there are still plenty of high-potential territories available for investment nationwide.
Plus, AtWork offers an affordable investment opportunity. Startup costs range from $153,500 to $210,500, including a $40,000 initial franchise fee. Franchisees can expect to pay 7.5% of gross revenues, which is considerably less than the industry average of 15.5%, allowing them to recoup their investment costs much sooner than other independent staffing agencies.
To learn more about the AtWork franchise opportunity, contact the brand today. Once AtWork receives your inquiry, a member of the team will be in touch with you to set up an introductory meeting.
