Entrepreneurs share a lot of things in common. They dream big and they are risk takers. But they are not always able to overcome the hurdles that come with building a franchise. Despite their bold fearlessness, the franchisors not all are destined to succeed and many new mistakes may pop up constantly.
With each new opening and brand awareness, there is a win-win relationship between franchisee and franchisor. The franchise can fall at a certain point in the expansion process. I have seen that certain difficulties appear again and again when I talk with many of the franchisers. These problems we typically see in our day today. Therefore, whenever you are weaving a proper plan for setting up a franchise, you need to consider a couple of issues regarding franchise difficulties and opportunities.
Brief discussion to three frequent difficulties that franchises face along with the solutions:
1. Expansion strategy designing:
It is best to launch your franchise in a city that you know well. You need to identify a few areas where your franchise could succeed. You must know which places will be suitable for your franchise. You need to count the number of competitors nearby, figure out where and where the people buy, and note what shopping bags they carry, count how many people walk in front of your potential franchise – it is so easy. You can understand whether the decision you are taking is the correct one or not. Thus, you should apply the strategies on how to franchise a business.
In the same city or in the other cities, you need to start investigating other areas to continue with the expansion, once you and your franchisees have opened franchises in the areas that you know well. Where to open new franchises is typical to know. You will need more money and time to find new locations and areas, and there is a risk of taking a decision as it might be wrong. Many decisions are taken based on experience and intuition as it is difficult to understand.
2. The attraction of new franchisees:
Before opening the franchise, the franchisors want to make sure they are taking the right decision as it can be a huge investment. There are many ways to win and convince franchisees. In this aspect, the common problem may arise and that is the number if the franchisees you need to convince.
3. Controlling and managing the franchises :
To control the network of franchisees in one’s city is manageable for the franchisor. To control what is happening in the network, it is easier to get all data from employees, sales etc. It gets harder to visit the locations to set up a franchise. It is also harder to analyze franchisees once the franchise network starts growing to a significant number in many cities across the country. It also gets harder to learn what locations work best and why. Without limitless money and time, you should control the growing complexity.
• Hire franchise consultants for probable solutions:
To solve the location related difficulties and others explained above, hire franchisee consultants. They will explore different solutions. They will give an overview of the most common chosen solution available in the market. Hire the services of a specialized consultancy company if you are a franchisor. They have a lot of experience in different sectors and this is the advantages of these types of consultancies. You can start seeing results from the beginning and you don’t need to train anybody.
Bottom Line:
Employing a qualified franchise consultant is a great idea. Their solid strategy becomes the foundation for the business and they are ready to help you with this. It is difficult to deal with failure is the most difficult thing, but It is easiest for the consultants.
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