The business world is cutthroat and competitive, and knowing when to make the right moves and maneuvers can be comparable to a game of chess. One choice you might be presented with over the course of your business career is the chance to franchise your products and services and provide them to a wider base by having multiple locations. However, before you begin your game plan, there’s some necessary reflection in the form of a few questions that can help you make the right choice.
- Is there currently a wide market for the products and services you have to offer?
- Are your products and services unique from potential competitors? Can they be easily duplicated and sold for a lower price that underbids yours?
- Will they generate a substantial profit if you begin outsourcing them to different locations and owners?
If you feel you hold a unique advantage in the market, then franchising your business might be the best option!
The Game Plan to Know: It’s Time to Begin Your Career as a Franchisor
Aside from needing investors to operate these new locations (franchisees), you need to formulate a solid game plan. But even before that happens, you need to examine your business VERY carefully to be precisely sure that it’s a perfect time. We’ve gathered a few examples of items to review.
- Money There’s no point to franchising if you can’t generate profits and your franchisees can’t recoup and formulate a return on their investment. Look objectively at the market. Consider consulting with an accountant or other professional, someone who can review your figures and give you an honest assessment.
- Minimal Risk “Fortune favors the brave.” While this might be true, franchisees aren’t going to be interested if your business has achieved minimal success, and the risks seem too high. They’ll be responsible for generating profits, and you are responsible for providing them with the plan that outlines every step.
- Return on Investment Your franchisees will want to know how quickly they can expect to break even and generate a profit and what it will require of them to reach that milestone. Franchising your business requires their time and money, and how quickly your franchisees can generate a substantial profit is a consideration they have to weigh.
- People This is one of the most important items, which is why we saved it for last. Can you attract the right people? They’ll be an extension of your brand, so you’ll want the best and the brightest, not to mention those who possess the right amount of motivation and drive to succeed and the ability to follow the program that you have established. Often, franchises fail because the new franchisee wants to run the franchise their way instead of following a tried and true process.
Franchise Your Business
If you feel that franchising your business might be the next step to expand and achieve growth, we can help you make the best decisions. Contact FranchiseYourBusiness.com today to learn more by calling us at 833-372-6249.