To franchise your business is a tried and true method of achieving quick development. In spite of this, becoming a franchisor is not a guarantee of success, especially in today’s difficult economic climate.
Many small businesses fantasize of their brand becoming a cultural icon, with a chain of franchises stretching from east to west or around the world. When the perfect concept is successfully franchised, it may be a terrific growth strategy that really doesn’t require as much up-front cash as developing through corporate units.
If you’re considering franchising your business, know that the process is usually long and involves considerable cost. Just because you qualify to sell franchises doesn’t mean you will find buyers.
Entrepreneurs generally select a franchise in which they have experience or are enthusiastic. However, many business owners are unprepared to cope with activities that they may not be familiar with, such as marketing, inventory management, payroll and other tasks. As rewarding as it may be to start your own business and run it on your own, it may be challenging to grow and manage it on your own.
Truth when you franchise your business
If you’re looking to franchise your business, keep in mind that the process of becoming a franchisor is generally time-consuming and expensive. You may be qualified to offer franchises, but that does not guarantee that you will find purchasers.
To evaluate whether your firm is “franchise ready,” there’s a need for full evaluation of your current operations as well as research franchise organizations that follow a similar franchise model. The procedure will assist in determining the fees and payments for your franchise scheme, as well as exclusivity, beginning expenses, and vendor requirements. Discover possible income sources for you as a franchisor at this stage, such as franchise fees, royalties, vendor and product rebates, product sourcing, software, and other options that are specific to your business. There are consulting companies that specialize in these processes.
- What is it about your brand or model that will pique a prospect’s interest?
- Do you currently have written operational procedures and processes in place?
- Is your existing location (or locations) profitable?
- Do you have a strong marketing and branding strategy in place?
- Do you have a Social Media plan in place?
- What are your expectations for your franchise system?
- How often employees do you have on hand to assist your franchise system?
For step by step to franchise your business details and guidance, contact Crawford Business Consulting and speak with a specialist today.