As we enter the new year, franchise business leaders must recognize how the industry is changing. Market trends continue to show rising inflation, backlogs in supply chains, and the impact of labor shortages on all business sectors. Innovative brands can create action plans that will help them move forward. They also innovate and optimize their operations and keep up with market trends.
Over two decades of working in the franchise sector, I’ve seen tremendous change. This article will highlight three critical trends and challenges to keep an eye on as we enter the new year. I would like to share some valuable insights about positioning your brand to succeed and ensure a productive 2023, whether you are a franchisor, small-business owner, or entrepreneur.
1. Companies with a purpose thrive.
As the out-turn of Covid-19 and the talk around sustainability has gone main-stream, it has become proof that consumers deeply care about the environment–and are choosing to support more environmentally-aware businesses. Consumers also choose to support businesses that offer more than a product or service to profit. Many companies were founded to make profits for shareholders in the past. Consumers today want to support businesses with a higher purpose and strong brand values.
We have attracted customers and franchise partners in my industry because we established a vital company purpose. Our company exists to make home care more accessible for seniors and their families. We implement strategies that align with this mission and a sustainable business model.
We have been able to attract customers and potential franchise owners by developing a solid value proposition. They value a model that is driven by a mission.
2. To increase their market share, companies are constantly innovating.
This is a better opportunity to develop your business’s offerings and increase market share in a changing market. Innovation is a great way to increase market share. Companies need to improve their processes and rethink the customer journey. They also need to expand their offerings by using existing resources and skills.
For example, in my industry, we are seeing an increase in home care franchises accepting a more comprehensive range of payers and reimbursement models. This allows them to grow their reach, increase revenues, and keep up with industry trends. This shift will be a boon for franchises and businesses alike. They’ll need to pay attention to what their competitors do and consider how they can increase their market share to keep up with the industry changes.
3. Keep an eye-out for market disruptors.
Market disruptions are when companies or technologies innovating outside of a specific industry significantly impact that market. Among many other lanes, Walmart and CVS are major market disruptors in the retail, healthcare, and grocery sectors.
CVS Health has taken the first step to expand its reach into healthcare services by acquiring Signify Health. Partnerships such as this are the basis for how different industries will blend over time as businesses look to expand their scope, reach their goals and grow their reach.
Your brand should be preserved among the many significant moves of large companies in your industry. Instead, make bold moves within your company to ensure your brand is noticed. Market disruption means breaking the mold of industry norms and showing how your brand is different.
What does 2023 hold for franchises in the future?
It can take time to keep track of the market and predict the future direction of your industry. However, by closely monitoring market trends and disruptors, your brand can stand out and be ahead of these changes. Your franchise interests will prosper in 2023 by communicating a solid purpose and looking for ways to increase your market share.