The population census in delineated areas has various advantages and disadvantages. One of its merits includes helping a firm to establish a customer profile. By undertaking a census, a trader can be able to get enough information about its customers through the questionnaires that will be instrumental in profiling them and, hence, providing services to suit their respective needs. A trader can also forecast the sales of the firm from the information collected. This is instrumental for planning in the institution. Its disadvantages include the inaccuracy of sampling information. Despite the advantages that this method brings to a trader, imprecise information may have a significant effect on a business. This is because the trader may be given misleading data that may result in inappropriate business strategies. For instance, wrong information on customers’ profiles may provide the trader misleading data on their preferences which will, in turn, lead to losses through the provision of faulty products.
By investing in an already well-established business model that has a proven record in the industry, a franchisee will have a competitive advantage in the market. This will be brought about by the fact that customers will go for a brand that is well-established in the industry as opposed to others that are still struggling to carve a niche for themselves.
A business format franchising is ideal in a market where it already has a good reputation. It is also a better option for entrepreneurs who are starting a business in a market that is already saturated with strong competitions that would pose challenges to a startup in establishing itself. This will ensure that the company picks up by riding on the brands’ unshakable image and competing effectively in the market.
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