CEO and Business Owner Bryan Punturo Discusses Top Considerations When Owning Chain Businesses
When it comes to choosing a business, many entrepreneurs are deliberating between creating their own venture or getting a chain franchise. Each has its own advantages and pitfalls, but many experts will conclude that a chain business, even if it costs a lot more than a personal venture, helps gain a solid footing for success.
CEO and business owner Bryan Punturo has been in the commercial business for more than three decades. His experiences in the industry tell much of one’s success in creating chain companies and expanding them in several locations such as in Traverse City, Michigan. Bryan Punturo recognizes that there are several considerations when it comes to choosing the right chain business.
If you are an aspiring entrepreneur hoping to break into owning and operating chain businesses, Bryan Punturo highlights the things you need to know before making that big decision.
Niche and demand
Whether you decide to operate in a physical location or claim an online business franchise, niche and demand will always be important. The niche is considered the “specialty” of your business and applies to the current demand.
Gone are the days where businesses provide a “general” need or an all-in-one shop. Bryan Punturo suggests that you are likely to succeed in operating a chain when you can identify a strong demand in your chosen niche. For example, fast food restaurants, ice cream shops, laundry shops, or any other specialty businesses will become successful when it meets the right needs of the community.
How does one research market demand?
- Identify the crucial information for your target market: Some examples include the price point they are willing to buy an item, what designs they prefer, or what settings they would prefer to receive services.
- Efficient research methods: There are surveying companies that can help you understand the demand of your target audience based on location and other important demographics.
- Comparing and reviewing competition: Are there similar products and services that your target audience prefers? You can compare and review the competition and see how you can improve on it.
Startup costs
Budget is of the essence when it comes to starting business chains. When you are applying for a franchise, it is important to note that you will be paying a premium for the trusted brand. The company brand is well-recognized, which means that customer trust and expectations are higher than new business ventures.
Thus, you would want to understand the startup costs for your chosen business chain:
- Package costs: Some franchises have an all-in-one cost for the startup, including the interior and exterior design and operations, equipment, initial inventory, and the branding fee. Inquire about these package price points and see which one fits your budget.
- Manpower: You will also have startup costs in hiring manpower such as your main service employees, administrational staff, and maintenance staff.
- Rent or construction: If you plan to own a physical location, a large part of your budget is also considering the costs of commercial renting or constructing your establishment.
- Overhead: Your budget should also include other miscellaneous and unexpected expenses, as this almost always happens during a business startup.
Customer service
Carrying a franchise also means that you will have to keep at par with the kind of service that the chain is recognized for. For example, fast food chains such as Chick-Fil-A are recognized for their excellent customer service, so picking and training your employees are important when running a branded business.
Although you will receive a lot of support, especially during the initial stages of running a chain business, independent thinking and action will play past the startup stages. Putting customer service at the forefront of your business will help you succeed.
As much as possible, you can attend the franchise’s seminars, orientations, and other training talks to help you as a business owner gain confidence in customer service.
Machinery, equipment, supplies, and maintenance
Another unique aspect of a chain business is the uniformity when it comes to different tools. For example, food and retail chains have specific machinery, equipment, supplies, and go-to maintenance to maintain consistent quality.
This is another top consideration when operating a franchise — you cannot cut corners or have your equipment, as you are carrying a brand name as a franchisee. While some new-venture business owners can find ways to lower costs or make the process efficient on their terms, you will be recommended to follow franchise protocols to ensure the consistent quality of the brand you are carrying.
Thus, you can inquire about the potential costs in this area, as this can go beyond the startup expenses. Being well-informed about the ins and outs of machinery, equipment, and supplies helps you set up your chain business for success.
Becoming a Chain Business Owner? Prior Research is Key
Punturo suggests that all businesses, whether chain or non-chain, must be executed with prior research in mind. Considering the things mentioned above and creating a plan, the better chances of having a profitable chain business.
