Franchise your business and multiply its growth rate – Smart steps to take
admin Yes, even the experts and the analysts are of the opinion that franchising your business is a surefire way to rapid growth but that doesn’t mean that being a franchiser is an automatic ticket to success. The present economic conditions are very poor and challenging for the business franchisers and reports suggest that there were 4 established franchisers who filed bankruptcy as they couldn’t deal with their debts.
Despite such statistics, there are some owners who dream of witnessing their brand become yet another household name, with a network of franchisees throughout the world. If you can franchise the right concept, this can be a huge expansion strategy that won’t ever require hefty upfront fees as they grow through company-owned units. In order to become a successful new franchiser you need to take some thoughtful decisions that won’t affect your business. Here are the steps that you can take in order to become a new franchiser.
Consider the actual concept of franchise: Most of the good concepts usually offer something that is very familiar with people but they make them special by adding a twist to it. A fine instance of this would rather be the Pizza Fusion based in Florida, that offers a familiar pizza but with all the ingredients being delivered to you at hybrid-electric cars. This concept has to appeal to both the prospective franchisees and to the end consumers. There will certainly be expectations that more and more units will create increased sales and profits. Your business should be something that can be replicated and not something that adds a personal touch.
Check your present financial condition: Most of the successful franchises opt for a business that is already profitable and then try to replicate the success to some other level. Most of the big franchise owners love to see companies with at least a few profitable unites apart from the first one already in operation. So, you should always check whether or not your company keeps growing.
Prepare for a change: When you become a franchiser, this will mean that you will be engaged in entirely new activities than what you were as a business owner. Primarily, you would be selling and supporting franchisees now. Hence you need to ask yourself whether or not you’re comfortable with those changes.
Make vital decisions about the model: After you prepare your legal paperwork, you should make decisions about how it will operate as a franchiser. The main points would include franchise fee, the term of the franchise agreement, the geographic area you would like to cover, the type and length of the training program and many more.
And when you’re done with all the above mentioned steps, you can start off with your own franchise business. Take the required steps to successfully run your business.