4 November 2014
Category:
Franchising
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Choosing the Right Time to Enter the Market

Timing is everything in life and in business. Enter the road a split second early and get run over, go into a market too early with your concept and fall flat on your face.

On the other hand, if you enter the market too late you will get passed by.

 

Being Perfect vs. Being Quick

“Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win” 
―Sun Tzu, The Art of War

 Knowing when to attack your market is very much like going to war.  Beat your enemy before you choose to attack.  But when should you enter a market with a well-planned attack, and when should you just be the first to market?

When to be Perfect

Competition is everything in a saturated market. If you plan to enter a market where there are some major players, you had better be slick.

If you are going into an established market, (e.g. hamburgers) where three companies–McDonald’s, Burger King, and Wendy’s–control nearly seventy-five percent of the market, you will want to have a number of very professional looking and highly organized units in order to stand a chance.

This said, many examples exist where a small operation has taken on the “big guns” and held their own. Even Wendy’s entered the market around 1970 when analysts said there was no room for another burger chain.

When to Move Quickly

If you are competing in a market that has no leaders, a fragmented market, then it is vital to be quick. You do not have to be perfect, just be there first, ahead of the competition.

Kentucky Fried Chicken, Midas, Holiday Inn, and Century 21 were all firsts in their markets. They all had flaws in the beginning, but when first into the arena there is time to work out the kinks.

To Act or Not to Act?

Be sure that you are absolutely ready if you are going to take on the kings of the hill. But, if you are fortunate enough to be in a fragmented market, do not drag your feet too long. Park benches are full of people saying, “if I had only pulled the trigger on that business opportunity.”

If you have questions relating to your company’s expansion and franchising opportunities contact Francorp today at 1-800-372-6244 or take the Is Your Company Franchisable? Quiz.

“You may delay, but time will not.”
–Benjamin Franklin

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