Today, many dream of doing their own business, which will bring good income every month. The only question that arises is which niche is best to choose for this. Every year, more and more beginning entrepreneurs prefer to start a business not from scratch, but under a franchise. And this is not surprising, because such a method of investing financial resources has many advantages. Having bought it, you can not only legally use the brand name, but also get a fully working system, as well as professional information support, assistance in positioning your business on the market and conducting an advertising campaign, a well-established network of suppliers and many other advantages.
However, deciding to acquire a franchise, you must understand that you do not have a 100% guarantee that the investment will be profitable. You need to be very careful in choosing the niche in which you plan to work. This is especially true for small cities, 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 top franchises for a small town that will allow you to build a stable source of high income, as well as talk about all the nuances of such investments.
Business prospects in provincial cities
Let's dwell on this in more detail. Before considering the specific ideas of a franchise in a small city, let's first look at whether it is worth starting a business in the regions.
Among the main advantages in favor of this, the following can be distinguished:
- The main item of expenses in any type of entrepreneurial activity is the rental of premises. In settlements and cities with a low population it is much lower, therefore, large investments will not be required to start.
- The level of business development in the regions is relatively low, so competition is low here and it will be much easier for the company to survive.
- Remuneration of labor is low, which positively affects the profitability of the company.
As for the cons, unfortunately, they could not do without them either. These include:
- Low wages negatively affect purchasing power, which should definitely be taken into account when planning to do business.
- Consumers need to offer 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 your business in the regions are quite high. However, today there are various low-cost franchises for a small town, which will be discussed a bit 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 open a business with minimal investment in a small city, then it is better to consider the acquisition of a franchise than to start a new enterprise on your own.
The reason for this is as follows:
- small initial investments;
- no need to develop and establish a workflow, because you get a ready-made system;
- brand recognition in the market;
- minimum investment in promotion;
- full informational support and assistance in resolving any issues;
- detailed description of the product and its potential customers;
- quick break-even.
Given all of the above advantages, by buying profitable franchises for a small town and working on them, you will minimize almost all the risks and you can be sure that you will return the invested funds in full and will receive a stable profit in the future.
What factors to consider when choosing an idea for a business?
What should you pay attention to first of all? The cities in which a small number of people live are very specific, so doing business in them, on the one hand, is more profitable, but on the other, more difficult than in megacities. In addition, as mentioned earlier, not all options will be promising. 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;
- solvency level;
- geographic location;
- climatic conditions of the region;
- level of tourism development;
- cultural and social preferences of residents.
Marketing research on the market 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 can select some 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 immigrants from the capital, but their financial capabilities are different, and therefore, it makes no sense to offer them expensive goods and services. Therefore, in order not to be mistaken with the choice of type of activity, you need as much as possible detailed information about your place of basing.
The most promising areas
If you do not have a large authorized capital and you are interested in a franchise with a quick payback, then you should be very serious in choosing a direction for entrepreneurial activity. The thing is that far from everything that brings big profits in megacities will work in small provincial towns.
Among the most promising areas are the following:
- food delivery service;
- car service and tire fitting;
- clothing and children's goods stores;
- commission stores;
- service centers;
- catering establishments;
- night club;
When choosing a specific niche, you must take into account the relevance of a particular type of activity and the level of competition. If a lot of companies already work in your chosen industry, then it is better to look for something else, since in small settlements business survival is much worse.
What is better to refuse?
Talking about what profitable franchises for a small town exist today for sale, one cannot ignore the types of business that are not the best prospects for starting work. They are determined by individual preferences and lifestyle of residents of provincial settlements.
Firstly, franchises that are associated with goods and services of the "luxury" category automatically disappear immediately. This is due to low levels of affluence. Residents of small towns are not ready to buy expensive things, as well as dine in restaurants. Secondly, the unprofitable decision will be the sale of exotic goods imported from abroad. And thirdly, the provision of non-specific services will bring some losses. For example, you should not even consider the option of opening a tattoo parlor, men's hairdresser, and more.
Earlier, we talked in detail about why it is much more profitable to start an existing business, than to open it from scratch, what are the advantages and disadvantages, 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.
Catering, fast food and food production
What is the peculiarity of this type of business? People want to eat always and everywhere, no matter where they live. Therefore, it is not surprising that the leading in provincial cities is the catering industry. For example, a bakery franchise would be a good investment option. This is due to the fact that every person buys bread and other bakery products daily. In this area, the company Dobropek offers the most favorable conditions. Its cost is only 500,000 rubles, and reaching the breakeven level takes from 5 to 18 months. This network is the largest in Russia, which is engaged in baking bread according to its own unique recipe. All products are made exclusively from selected high-quality ingredients, so it has a unique taste, for which millions of consumers across the country love it.
If the bakery franchise is not to your liking, then pay your attention to the Baby Potato chain of cafeterias. These establishments serve a variety of potato dishes at very affordable prices. Every day a lot of visitors come here to eat quickly, tasty and of high quality, so you are guaranteed a constant flow of visitors. The lump-sum payment is 480,000 rubles, and the amount of royalties varies from 5 to 6 percent per month. At the same time, the seller promises that after 1.5-2 years, all investments will fully pay for themselves.
Another good option is to buy the fork-spoon restaurant franchise . These establishments offer a large selection of hot and cold dishes of traditional and modern Russian cuisine. Institutions have a pleasant unobtrusive interior, which is somewhat reminiscent of a home environment. The entry 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 institution, regardless of region, monthly brings at least 3,000,000 million rubles in revenue, so you will start earning very quickly.
Food delivery service
The life of a modern person is very eventful, 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 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 cuisine at an affordable price directly to their homes. The lump-sum payment is only 120,000 rubles, which is quite cheap compared to many other offers. In addition, each month you will have to pay the seller 2.5 percent of net profit.
Less popular, but also promising is the franchise "From the Village." The 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 used to luxury and high cooking. Down payment - 200,000 rubles, and royalties - 3% of the turnover.
Good conditions for cooperation in the sale of goods and services are provided by the Jeans.Superzena company. Franchise stores in a small town are well recognizable, therefore, sales volumes are always kept at a high level. As you can guess from the name, the main assortment is jeans of various sizes, designed for representatives of any age categories. This option will be ideal for those who want to do business, but are limited in financial resources, since today there is no lump-sum payment and royalties on this project. The only thing you have to spend on, in addition to the main expense items, is a one-time advertising fee of 15,000 rubles.
Also a very interesting option is the Magic Book franchise, which provides an opportunity to open a store selling such children's goods as literature, coloring books, educational toys and much more. Its cost is 45,000 rubles, so a large sum of money will not be required to start a business.
Magnit is the best grocery store franchise for a small town. This company is a huge trading network at the federal level. The offered assortment is food products of domestic and foreign production. Many consumers choose “Magnet” because this network offers a large selection of products at one of the lowest prices on the market. Despite the rather large size of minimum investments, which amounts to 5 million rubles, investments on average fully pay off in one year.
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 brand are open throughout Russia. They provide a wide range of medical services. The cost of a franchise package varies from 50 to 200 thousand rubles, and there is no monthly royalty. At the same time, the seller assumes the obligation to educate and train the hired staff, which is very convenient since you do not have to look for experienced nurses yourself and you can immediately start working. In addition, some packages include free delivery of high-quality supplies.
The CMD Diagnostic Center has a lucrative franchise for a small town 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 deadline for breaking even is only eight to nine months.
This article examined 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 to decide. Importantly, do not forget to take into account the particular region and the level of competition. But as the statistics and financial statements of the entrepreneurs working for them show, investments quickly pay off, and enterprises quickly begin to generate stable profits. Never be afraid to take risks! After all, if you do not start doing anything, then it will not be possible to find out the result!