After setting up your business successfully, every businessperson wants 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 delivery at home in food chains.
There are many business expansion strategies but franchising your business takes this to another level because it takes more groundwork 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 proven 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 an operator and worker helps the investors decide whether to invest. 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 paper sheets’ business model results.
- 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, you would not be able to use your product’s popularity, 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 thing in your franchise. Your business model should be easy to replicate and teachable; this helps the new franchisee work and earn a profit.
- Your business model can provide an adequate return: The new franchisee would obviously want a good return, so your business model should be able to provide as much a return as the franchisee expects. A good return would help you in maintaining good relationships. It would help if you worked as hard in making your franchisees successful as you worked when you started your business because this will help you make a reputation as a 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. Laura Rea Dickey, the CEO of Dickey’s 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 working on various fields of her family business, and now Dickey’s 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, exact details, and guidelines to understand your business better. 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 a better impression of the new franchisee. Explain all of your business details with the new franchisee so that they can work on it and give you the benefit of franchising your business.
- Get a good lawyer: 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 provide 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 one can use your brand name in ways that may affect your business and customer markets.
- Please seek advice from experienced: It is not a bad idea to seek advice from the franchising business’s expertise and experienced people. Do not hesitate to ask all types of questions because a little hesitation now can result in a big loss in your business if you miss out on a little but important detail about franchising. Find a mentor in this field and ask them to help you get started with the franchising business. There are many people out there who would help you willingly ad happily.
- Choose the right place: Choose the location by yourself for your franchise or help the new franchise owner choose one because it would affect your business economically if you are in the wrong zone and do not have many customers.
The above points will help you in setting your franchising and make your business more profitable.
