Franchising has always been a potential option to explore when it comes to business expansion. But does it mean every other business can opt for it randomly without even conducting proper research? The answer is certainly ‘No’.
Though with the help of franchising, many businesses have attained newer heights of success. But many entrepreneurs also have experienced serious failure after getting into the franchise business. So, before you jump into the thought of how do I franchise my business, let us know about the key aspects which you should eye on to evaluate whether it will work for your business.
Easy to be reproducible
“You can't do well unless your franchisees do well” – wisely said by Richard Cole, Founder Geeks on Call.
It’s pretty obvious that all the unique attributes of the original business including founder’s competency in terms of selling products or managing the operations cannot be replicated. Considering the same, franchisors must ensure that they come up with a reproducible business model which, can be easily replicated by franchisees after getting proper training for a stipulated time. As they are investing a substantial amount as the business capital, they want to learn all the operations as fast as possible and will not probably wait for the outlet to earn profits on their own.
Unique Selling Point
Unique Selling Point (USP) is the thing that helps you to make your business stand out. This is one such factor that lures potential franchisees to buy your franchise as it increases their chances to earn substantial profits. So, always try to identify that USP of your business or inculcate the same if you don’t have one for attracting franchisees to collaborate with you.
Consistent profitability
Check whether your business is making sufficient profits at a consistent basis or not. No franchisee will invest in a franchise that is incurring losses over the past few years as that would simply put his entire money on a toss. So, as a responsible franchisor, you must ensure that the franchisees investing in your franchise system will find some lucrative profit-making opportunities after paying you the franchise fees.
Flexibility
As a piece of expert franchise advice given by most dexterous consultants, you must ensure that your business operations are flexible enough to adapt as per the local markets thereby, helping the franchisees to enhance their entrepreneurial attitude. Based of demographics, your product or service must be modified to become a hit in other regions as well.
Large market of operations
Franchisees always look for businesses that boasts a wide market base. So, you must ensure that your business has a potential market for them to explore and thrive. Your business might be a popular brand nationally or globally, but many potential customers fail to avail the service or buy your products simply due to accessibility or availability issues. With the help of franchise system, you can eliminate these barriers and widen your customer reach.
To become a successful franchisor, you need to have strategic planning and efficient personnel staff who can analyse your business dynamics and help you take the right decision when it comes to franchising your business. Also, you must consult expert professionals to get a clear understanding of all your queries related to ‘how do I franchise my business’. Remember, specialised guidance is always advisable for exploring any unknown periphery.
Also Read: Things Franchisors Must Prioritise During The Current Crises
