When joining a home building franchise such as Hotondo Homes, many builders will have an option for a territory they can purchase. This of course is dependent on your location. Someone who operates in a metro area will undoubtedly have more choice than in a rural or regional area. However, there are a number of things to consider before selecting a territory.
Location, location, location!
One of the major benefits of being a part of a national building franchise is that you are still a local business owner. With that, you have the local knowledge and local connections to provide your clients with a truly personalised service. If you’ve lived in and worked in a particular area for years, then you’ll be able to provide a service that no other national builder can. You’ll also be able to work with local trades and suppliers to help support your community which is always a great bonus!
When making any major investment you need to do your due diligence. In the franchising world, this includes doing your homework on the area. While the franchisor will provide information on each territory it is always advised you follow up too. Looking into new developments or population forecasts will provide a good indication of where the market could be heading in the future. You should also take the time to research the kind of market you could potentially be working with. Is it an area with sloping blocks, a lot of knockdown and rebuilds or booming with first home buyers? You’ll need to consider this in comparison to your skills or speciality before you decide to proceed.
Will there be longevity?
Again, researching the market you are in will allow you to determine if there is longevity within the territory. A regional area that experiences a boom may not actually survive the long haul. This was evident for many businesses in regional towns during the mining boom. But an area where land is flourishing, businesses are thriving and the community itself is appealing will show promising signs towards a business’ longevity. You see this in coastal areas and even suburbs within a reasonable proximity to the capital cities.
Search for the right community
If you live in a tight-knit community you truly love, this is an easy fix! If you fit right in to your local town there is no reason not to do business in it – if anything it is a huge bonus! A large part of operating your own business is how you work with other businesses as well as the greater community – after all they will be your client base. If you’re looking to purchase a business in a metro area this can become more challenging as there is rarely the same community values you would find in a regional area or town. This is where you’ll need to determine if the local community you will operate in is actually the right choice for you. Is the client base right? Will you find the right trades and suppliers? How can you help support this local community?
While there are many factors to be considered when determining which territory to proceed with, the above are just a few that could be forgotten. If you’re currently shopping around remember to work with the franchisor, they’ll be more than happy to help you source all the information you need to make the right decision.
If you’re interested in learning about franchising with Hotondo Homes, get in contact with us now by clicking here.