By: Puneet Dutt
Dianne Buckner’s article in the CBC News Business Section, “Importing a great Canadian business idea,” had some really great points that people don’t often think about when opening a franchise. The article highlighted Cam Inglis, the 35-year-old Calgarian entrepreneur behind the Marble Slab franchise in Canada, who bought it when it was still a low cost franchise business in Calgary as supplemental income.
It describes how he “found, evaluated and exploited the U.S. chain” as an Canadian business opportunity.
The fact that Inglis went for a business franchise and investment that caters to a customer base that’s less price-sensitive was a surprise. Often we associate franchises as offering value to the consumer, (i.e. Quiznos) and not offering a high-end product with a high-end price tag. (That’s a scary initial investment, no?)
But in Canada it seems like there’s an overlooked market for higher-priced goods. Considering Canadians plan to spend more than $46 billion this year to renovate their homes, continuing their property spending spree even after the expiry of the home renovation tax credit. This will be up from $45.3 billion spent last year and $40.9 billion in 2009, it makes sense then that there are a growing number of Canadians willing to spend on the smaller non-essentials. (A custom-mix at Marble Slab will cost about five dollars. A pittance compared to a home reno.)
Of course, knowing how to get into franchising, knowing about the business of a franchise, and how to develop a franchise are huge factors that make or break the success story of an entrepreneur thinking of investing in a franchise. However, buying a franchise in Canada, instead of developing one’s own appears to have it’s merits, especially buying an established franchise that caters to a Canadians with fat purses.
Thus, this entrepreneurs success story does show that, “not every successful business has to come from an idea you dreamt up yourself. Inspiration can come from anywhere, the perspiration — the hard work — you still have to supply yourself.”
So next time you get an itch to make more money, to search for investing opportunities, or are looking to make a second income by buying a business in Canada , consider an existing franchise for sale that caters to a customer base that’s less price-sensitive.
Research, research, research! Study the growth of the economy and you will find Canadians are making more, but spending more too. So catering to a customer that’s less price-sensitive might be just the thing, and the profits may just surprise you.