You might consider franchising your business once you notice an increase in performance, sales, and realize you have become a distinguished brand within a competitive market. A franchise is a great way to expand your small business, however, you must understand that it takes time.
Remember, you will need to consider changes to your business model, how you handle and measure consumer satisfaction, and how you tabulate revenue. Therefore, if you are new to franchising, you might want to consider our premium legal services before you venture into this business model. Once you have decided that franchising is the way to go, consider these factors:
Product or Service Superiority
A thriving franchise begins with a superior service or product. Therefore, your service or product should attract prospective franchisees in addition to attracting consumers. Demonstrating your business’s credibility and profitability will be particularly vital to acquire franchisees.
First, consider the success of your service or product, and establish whether it’s been proven over time. If it has, your business might work as an excellent prototype for franchisees. Keep in mind, however, that a franchise operation should be more lucrative than a regular business because franchisees will need to pay an initial fee initially and royalties while earning sufficient income for themselves.
Strong franchises frequently strike a balance between wide appeal and originality. Most consumers will recommend a familiar service or merchandise with a dimension that makes it distinct in the marketplace, such as a unique patented technology.
It is imperative that you develop awareness around your brand to differentiate your business from your competitors. Keep in mind that a strong franchise will emerge from a brand that has gained considerable recognition in the marketplace. This way, even if other businesses produce similar services or products, your brand will set you apart. It is also important that you protect your intellectual property using a trademark that will protect your brand’s distinctive features.
When franchising, your focus will shift from serving the end consumer to the entrepreneurs who are buying your franchised business. You will need to concentrate more on optimizing the infrastructure for other individuals’ businesses and less time on working with those purchasing your product. This is a huge transition for any company but particularly founders who are accustomed to collaborating directly with their clients or customers.
Shareable and Teachable Concept
Once you have decided that your service or product is distinct and profitable, you must consider whether you can teach franchisees and their employees about the concept in a comparatively short period of time. Although some businesses are lucrative, they may depend on the owner’s continuous involvement to remain successful.
If this is so, make your business franchise-ready by hiring workers and training them in your techniques. Make sure you can explain the concept to other people in a way they can grasp and consistently replicate.
Most businesses can do this, but you must put the process down on paper. Eventually, you can solidify the prerequisites with training manuals, training programs, and handbooks for every level of your franchise operation.
Although you are capable of operating your business, running a franchise can be demanding. Once you franchise, your business will expand along with your responsibilities, as will your team’s. You will need good communication and organizational skills, which will enable you to sustain a solid team work ethic and a stronger organization. Remember, being a franchisor is a separate business from the single unit that you have been operating on a day to day basis. Your focus becomes expanding the franchise system and not operating your single location.
If you’ve seen tremendous business growth, you might be thinking of franchising. But before you do it’s important you evaluate these factors before making any decisions. If you’re new to franchising, for instance, the model might seem overwhelming. Fortunately, you’ll find the advice and information you need from Harold Kestenbaum, so don’t hesitate to contact us.