Reasons to Diversify Your Franchise Portfolio
If you have experienced franchising success within one industry, there is no reason to stop there! By diversifying your franchise portfolio, you open up a world of opportunities to achieve all of your financial and personal goals. You also can stabilize your portfolio by adding concepts in different industries and decreasing volatility.
Pursue a New Passion
One of the perks of being an entrepreneur invested in franchising is the chance to seek out sectors that not only make great business sense but also appeal to you on a personal level. For example, many restaurant franchise owners and operators may also be pet lovers, so the opportunity to invest in an award-winning pet care brand is a no-brainer.
Exploring passion projects that vary from their traditional investment portfolio gives franchisees increased exposure to more opportunities for return and can help safeguard against adverse market cycles.
Protect Your Investments
If you have all of your investments tied up in one brand and that brand loses a chunk of value, YOU lose the same amount. But if one investment is only a partial player in your overall portfolio, you will experience far less of a hit and be able to recoup your losses through your other ventures.
Diversification is key to a successful business portfolio. By spreading your investments across a range of assets in various sectors, you can protect yourself from major loss if one business faces unforeseen challenges. Franchising with a well-established, recession-proof brand is a smart way to diversify in a sector where you may have less experience.
Even if you are confident in your current investments, business ownership can be unpredictable. Diversification can help you remain competitive in more than one market, increasing the opportunities for greater return.
Cross-Promotion
While healthy competition always comes with the territory in business, some franchises naturally complement each other and provide an opportunity for owners to succeed through cross-promotion. For example, within the pet care sector, it would make sense for a dog food store owner to diversify with a grooming business, fostering crossover sales and building relationships with customers through two different businesses. With cross-promotion, you can utilize the success of one business to build another.
There is also the opportunity to branch out across different industries within the same shopping center or neighborhood, optimizing both real estate benefits and convenience for customers. A savvy investor will recognize the chance to capitalize on their gym or salon by opening a dog grooming business next door — providing dual services for their clientele while enhancing their business.
Room For Growth
Perhaps one of the biggest questions to ask yourself when diversifying your franchise portfolio is whether to branch out with a new business venture or expand by purchasing multiple units within your current brand. The immediate benefits of buying within one brand are obvious. You have strong knowledge of the product or services you’re selling, you are well-versed in the operational structure, and you have an established relationship with the franchisor.
Diversifying with a new and recession-proof brand may offer opportunities where your portfolio could be lacking, and at low risk to you. Scenthound provides both professional and personal fulfillment for investors seeking to branch out, with reasonable startup costs and a streamlined franchise model designed to help both new and experienced franchisees find their place in the pet care industry.
And once you have grown accustomed to the benefits of partnering with Scenthound, you have the opportunity to sign a mutually beneficial multi-unit agreement deal with a company that is committed to your ongoing success. As a fully scalable, membership-based franchise model, Scenthound appeals to customers and franchisees alike with its unique approach to well-rounded pet care and limitless growth potential.
Partnering With Scenthound
Launched In 2015, Scenthound has been offering franchisees proven investment opportunities since 2019. As a leader in the booming pet industry, Scenthound is a franchise model that provides ongoing training and support along with the opportunity to expand your business portfolio while providing a greatly needed service to pet parents and their dogs.
Scenthound is a great opportunity for those looking to purchase more than one unit within a brand. The Scenthound model is built for multi-unit ownership — solving for scalability concerns that come with operating more than one unit at a time.
To learn more about how to become a leader of the pack with Scenthound, visit us.