As an entrepreneur you’re probably always interested in finding ways to grow your business and increase your profit which is what being an entrepreneur is all about really. If you’ve been successful with your business so far and you are looking for ways to expand your business you may want to consider franchising.
Franchising is often selected because it can help businesses grow fast but it’s not always the best solution for all business. So, if you’re interested in finding out whether franchising will work for your business take a look at the tips below and decide if it’s the right move for your business to make.
1. Have a System Set in Place
As an entrepreneur you probably run your business based on your gut, you make decisions by weighing your options and deciding what the best move is in each situation, but even if this has worked so far, there must certainly be some kind of shift if you want the franchise to be successful. This means that you will need to set up a system -or a model- under which the franchises can operate just like your business operates. It’s essential for franchises to reflect the model of the original business otherwise this will end up hurting the brand and it may have disastrous effects on both the franchise and the original business.
To ensure success in this respect make sure that you write a handbook with tips and a detailed analysis of your business model in order to help your franchisees run their franchises successfully.
2. Invest in Training
When franchising, training becomes essential because it can help your franchisees understand how your business operates and this can help them set the grounds for how their business –your franchise- should operate.
This is why your training should be thorough and long, it should cover all aspects of running your business and you should make it a point to share with your franchisees your business philosophy and the thought process that helps you arrive to each decision.
3. Understand How You Should Grow
Though you may dream of building an empire, it’s essential that you keep your expectations realistic and that you don’t expect your business to outgrow itself overnight. This means that you have to take a close look at your business to decide how it should grow. For example, can you set up hundreds of new outlets all over the country or should you start with outlets in neighbouring towns where the same market rules apply? Understanding this will help you not to outreach and have realistic expectations of what your business can achieve.
4. Choose the Right Locations
Franchising is very similar to launching a new business in that you need to find the right moment to do it, the market needs to be ready and willing to accept your product or services and your business must somehow fill a gap in the market in order to be successful. The difference, however, is that you don’t have to build your brand all anew. On the contrary, you need to find locations where your brand is recognizable in order to set up your franchise. This will help business and it will also help reinforce your brand.
5. Know Your Franchise
The trouble with franchising is that you can’t be in lots of different locations simultaneously and chances are you are not going to want or be able to leave your headquarters but how can you be certain that your franchisee is capable and that he can be trusted? The best thing you can do is to grow your franchisee internally, select him from the ranks of your employees and promote them to manager so that you can work closely with them to help them understand your line of thinking, but also so that you can understand how they think. This will help forge a bond of trust between you and when you are certain that they can handle things on their own you can train them to run the business on their own.
Franchising can mean wonderful things for your business and brand as long as it’s done right and the franchise respects your original business and follows its model closely.