After setting up your business successfully every businessperson want to expand the business because sooner or later one has to go big if one wants to earn profit in business. The most excellent way to expand your business is franchising. If your business is always successful then there can be no better way than franchising to expand the business from local to global. There are many other ways to expand your business like adding new products and services, targeting new customers, more advertising, and in case of food chains delivery at home.
So there are many business expansion strategies but franchising your business takes this to another level because it takes more ground work than ever. But franchising the business has its own problems which one need to understand and know the following before going global:
- Your business model is working better or at least the way it was supposed to: A proved business model is the first requirement before going global by franchising. Your business model’s success decides whether your business is ready for franchising and whether the investors would be willing to invest in your franchises. Performance and customer acceptance is the thing which decides the success of your business model. The business owner’s experience as operator and worker helps the investors in deciding whether to invest or not. An unprofitable business model or customer unacceptable model does not need the idea of franchising the business yet. An owner should understand this about the business fairly and think about the results produced by the business model on the paper sheets.
- You are selling your product and will be able to replicate your product: The new franchisees should be attracted by your business model that means your business model and your products should be able to sell themselves to the new franchisees. A successful market of your product will affect the franchisee positively. Also your product should be replicable because if you can’t then you would not be able to use the popularity of your product and there will be more chances that the new franchise is likely to fail to impress the customers. Your new franchise would be able to sell your product if you are offering the same exact thing in any of your franchise. Your business model should be easy to replicate and teachable, this helps the new franchisee to work and earn profit.
- Your business model can provide adequate return: The new franchisee would obviously want a good return so your business model should be able to provide as much as return as the franchisee expects. Good return would help you in maintaining good relationships. You should work as hard as in making your franchisees successful as you worked when you started your business because this will help you in making a reputation of good franchisor and committed franchisor.
The above points will help the businesspersons ensure that whether their business is ready for franchising. After you have decided that your business is worth franchising and would be able to fulfill all the demands of a successful business and a franchisor then you should look forward to the things which will help you in franchising your business., the CEO of Dickeys barbecue pit, has done a great job in franchising her family business proving that she is a better businessperson. She has done a great job in working on various fields of her family business and now Dickeys barbecue pit is taking online orders to be delivered at your doorsteps. Here are some tips to help you in franchising your business:
- Be neat and ordered: You must have a thorough idea of how your business works. The New franchisee would require all the information, the exact details and guidelines for better understanding of your business. They will be investing their time and money in your business model and obviously they would want it to be worth all the investment. You should be able to provide them all the details neatly and present yourself organized for better impression on the new franchisee. Explain all of your business details with the new franchisee so that they can work on it and give you benefit of franchising your business.
- Get a good lawyer: The franchising requires a lot of legal work. You need to get a Franchise Disclosure Document (FDD) to operate your franchising work smoothly and under your control. A lawyer would be a good decision to help you in all the legal matters and in providing you expert advice.
- Value your brand and protect it: Your business is the most valuable and significant asset for you so you should value your business brand and protect it at any cost. You are giving rights to the franchisee for using your brand name and all the perks of having it i.e. your customers, profit etc. and there you have to be very much careful about what details you are providing to the franchisee. Your franchise owner should not use any of the brand’s assets in any way without your permission. You should monitor everything and regulate and operate all things under your control so that no can use you brand name in ways that may affect your business and customer markets.
- Seek advice from experienced: It is not a bad idea to seek advice from the expertise and experienced people of the franchising business. Do not hesitate from asking all type of questions because a little hesitation now can result in a big loss in your business if you miss out a little but important detail about franchising. Find mentor in this field and ask them to help you in getting started with the franchising business. There are many people out there who would help you willingly ad happily.
- Choose right place: Choose the location by yourself for your franchise or help the new franchise owner in choosing one because it would affect your business economically if you are in a wrong zone and you do not have much customers.
Above points will help you in setting your franchising and make your business more profitable.