If you’re at the point where you’re thinking about the next step to take with your successful business, first take a minute to congratulate yourself! If you have loyal customers, the public recognizes your brand, and you have a track record of strong revenues, you may be thinking it’s time to open other locations. Or…how about franchising your brand? This can be an exciting and more lucrative expansion strategy. There may be stressful points along the way but taking the time to ask the right questions and understand the steps will minimize your stress. Let’s look at some reasons why you should consider franchising your business.
Should I Franchise?
To put it simply, the answer is yes! Whether you live in a city or suburban area you’ve probably noticed many franchised businesses around you. Franchising has become one of the most popular and rewarding strategies for expanding a successful business. In the U.S., one out of every ten businesses are a franchise. Statistics also show that franchises generate 50% of all retail sales. Franchises also generate more than $1.2 trillion in annual sales. Now does franchising your sole proprietor business sound like an option worth considering?
How Can I Benefit?
There are many ways you and your business can benefit from franchising. Franchising offers the unique combination of your strength and passion for the business plus the financial resources of individual entrepreneurs. You’ll have quality management of your new locations since franchisees use their capital in the franchise and are responsible for generating profits. You’ll also be able to expand at a much faster rate since the franchisee is responsible for expenses as well. Other benefits to consider include extra freedom, increased brand or name recognition, increased buying power, and protection from liability.
Change Your Role
Before deciding on whether to move ahead with a plan to franchise your business, ask yourself if you’re ready to make the change from sole proprietor managing one or a few locations, to the CEO of your brand. Your focus will shift from day-to-day priorities such as managing inventory on a small-scale or hiring and training workers, to developing and promoting your brand, building a vigorous training program for franchisees, recruiting candidates, awarding franchises and much more. Instead of hiring employees for your one store, you’ll standardize your hiring and training practices and policies. This will ensure that the franchisees who follow your process will hire employees with the character, skills and experience that align with your brand.
Taking the Next Step
If you’re ready to dive into the world of franchising, you may not know where to start. Franchising can be rewarding on a financial and personal level, and it may also bring expected and unexpected challenges just like anything new. That’s why we can’t stress enough how critical it is to educate yourself on the ins and outs of franchising. Most important, seek the counsel of experts in franchise development. This counsel will help you structure your new franchise operation and ensure that you and your business are in compliance with state and federal agencies.
Start your franchise journey at FranchiseYourBusiness.com, our global resource center. In addition to lots of information about how to franchise your business, sign up for a free consultation with the best in franchise development, experts who will help you every step of the way. Get ready to grow and make your business even more successful by visiting us at 640 Freedom Business Center Drive Suite 131 King of Prussia, PA 19406, or contact our expert team today at 833-372-6249 to request a free consultation!