Is Franchising My Business The Right Growth Strategy?
Franchising is one of the most powerful business expansion tools a business owner can use. Deciding to follow this growth strategy requires careful discernment and continuous learning about your business and the market. FranchiseYourBusiness.com is an agnostic, global resource to all things franchise development.
Here are some factors that impact growth potential when a business becomes a franchise operation:
Always Perform Market Research
Be realistic about the scalability of your business, including how deep, wide, and far it can go. Your great business model in Texas may not function well in New York. Is your market growing or shrinking, and if so, how fast? Are you able to counteract a slow-growing market with an innovative system or product? Or by franchising in different markets? The point is, if you’re struggling to keep your business afloat, franchising may not be the best idea after all, but seek the opinion of an advisor here on our website to find out.
Marketing Benefits Are Superb
There are several market incentives for franchising, which make it such an attractive option. Once you step beyond the small business mindset and into managing a system of businesses, you’ll begin to experience the abundant marketing techniques available. As your franchise system grows, so does your budget, and that equates to more money for advertising. It’s a marvelous compounding effect that many franchisors heavily leverage.
Is Your Business Model Amenable to Franchising?
Not all businesses fit into franchising, but the good news is that MANY do. There are at least 75 different industries with businesses that franchise in some fashion. Restaurants, health services, and traveling are among the best for it, but franchising is also popular in electronics businesses, financial services, automotive, sports/recreation, and much more.
Know the Basic Steps to Franchising
Like any business purchase, sale, merger, or acquisition, there are some necessary steps for executing the whole process. They are:
- Design the operations system
- Do all the legal registration and paperwork (carefully and with help)
- Hire all the staff you need for new units/locations
- Build support networks for franchisees
- Spend a significant amount of time on effective training and advertising