Franchising has long served as a desirable career path for entrepreneurs looking to be their own boss, especially for those interested in not having to build a brand-new business from the ground up. One of the main reasons franchising is attractive is because it allows you to benefit from an established business model and support system, and do so with greater confidence than starting from scratch.
Once you’ve decided you want to invest in a franchise, the next step is to decide which kind. There are franchising opportunities in just about every sector, but as a prospective franchise owner, you want to look for that perfect intersection of your interests and market demand.
If you’re an entrepreneur who prides yourself on a healthy lifestyle and you want to help others to do the same, the choice to invest in a health and wellness franchise may be the right path for you. While there are many things to consider when determining which type of franchise to invest in, here are my top tips for owning a franchise in the health and wellness industry.
Make Your Business Stand Out
Consumers are prioritizing their well-being more than ever before, and brands are rapidly growing in this space by picking up new customers who are spending more money on health and wellness services.
In fact, in recent years, I am seeing more consumers spend well over $100 per month on personal training, group fitness and designing their own lifestyle regimen. The $3.7 trillion global wellness industry is expected to grow by over 17% through 2020, so there is plenty of room for growth without the hyper-competition that can sometimes arise when the only way to grow is to take market share from someone else.
On that note, while there are plenty of customers to go around, to rise above the competition, remain focused on being excellent at the service or product you are offering and never waiver from that. From my franchisor perspective, franchisees buying into an established brand also have access to that company’s outsized marketing and support system.
Beware Of Fads
While technology may be disruptive to other industries, it complements the fitness industry because it makes the one-to-one relationship with a professional more meaningful and insight-driven. Additionally, given that fitness and wellness are stable and draw customers to a location, landlords want these services in their shopping centers, which can help you secure a great site.
When speaking of stability, it is worth noting that, as with any rapidly growing industry, you want to be cautious about the fad options that are out there, as many of them end up being short-lived. Protect yourself by making sure you invest in a brand that has been around for a while and has a track record of success and credibility.
Offer High-Demand Services
Look for categories that have been in demand for decades to stave off winding up with a fad business. One such category that continues to thrive year after year is personal training. Demand for personal trainers has grown steadily over the last five years, and IBISWorld estimates that growth will continue between 2018 and 2022, with industry revenue projected to increase 3% in 2018 alone.
Consumers want personal training because it provides a high level of customization to their unique needs and situation. Beyond working out, people are looking at their overall well-being and desire a more personal relationship with a trainer who understands them and will hold them accountable to their goals. These are solid reasons consumers will continue to want this type of service well into the future.
Cater To A Wide Consumer Base
There are two segments of consumers in particular that account for the vast number of people interested in health and wellness services, and their needs and goals vary widely. First, there are the baby boomers, who are looking for ways to improve their mobility and quality of life as they age. As a group, boomers account for more than half of all discretionary spending on personal training in the U.S.
Then, there are the millennials. Millennials look at fitness and health as a key part of their lifestyle and are willing to pay more for it. A large portion of millennials are coming of age and into more income and are spending that money on discretionary services like personal training and group fitness. In fact, consumers aged 18 to 34 make up a significant market for the industry, with revenue from this segment accounting for 18.5% of total annual revenue.
These two generational segments are just a sampling, since health and wellness demand extends to Generation X and the older end of Generation Z. While the pool of consumers is large, be careful about being all things to all people. Find your niche, and make sure your target consumer sees you as the expert in that category.
Ultimately, deciding on whether the health and wellness industry is right for you depends on several factors. Above all, it’s important to find your passion, whether it is in the health and wellness space or not.