Does franchising really increase the chance of business growth? The short answer is yes! Franchising is widely considered to be a very successful strategy for expanding a solid and proven business. It’s no surprise that entrepreneurs are often searching for ways to continue growing their company after reaching certain points such as cementing a strong business model or a loyal customer base. It’s important that a business be properly set up for replicable operations and profitability before franchising.
Considering how to start a franchise is the next logical step when businesses are looking to grow with minimal risk and maximum efficiency. A developmental phase such as this means entering new markets in a way that’s scalable through increasing market share, localizing, and diversifying. Enterprise owners should see franchising as a surefire way to increase the chance of business growth without having to directly invest in their own expansion.
Localize and Diversify
If you want to build your own franchise, the ability to localize and diversify are two major benefits. As a structure for growth, franchising provides an opportunity to be local yet scalable in a consistent manner. Because you can easily expand into new territories this way, you’re automatically tapping into a wider audience. Keep in mind that deciding on appropriate locations based on market research is an essential aspect of this kind of expansion, and often the help of franchise constants is required. As a win-win set-up, when you franchise your business, it also means empowering a varied range of other entrepreneurs all while reducing capital costs.
Lower the Risk
When considering how to franchise a business, remember that while it’s not an easy process it does serve to minimize the risk of expansion. This is due to the fact that you can scale for growth without having to raise additional capital, increase overhead costs, or sacrifice the quality of your products or services. Since you won’t need to fund the opening of new locations there is less concern about loss if they are unsuccessful. At the same time, you can increase your buying power among vendors making your network more competitive and reducing overheads all around. This means higher potential profits and royalties than you might see from other methods of expansion.
Increase the Market Share
In determining how to franchise for business growth, it’s important to factor in that franchising can work to increase your overall market share. When you franchise your business, you streamline the processes so that you can offer more services to more people. Expanding the overall scope of your company can create multiple revenue streams and advance the earning potential of the enterprise in a shorter period of time than other avenues. Having many outlets means a greater presence in the market and as a result a broader customer base. Such rapid expansion from streamlined systems and franchisees taking on the responsibility means being able to saturate a market before competitors can even respond.
When working out how to franchise your business best, the most important factor quickly becomes a solid infrastructure. You need to be able to support the growth of the company and the franchisees. This is where franchise consults come in! They can provide the operational support needed to effectively structure your expansion as a franchise, making sure your model is in the perfect condition to take on this next step.
At FMS we offer the support and consultation services needed for building a franchise empire! We help your business thrive as a franchise consulting company that prides itself on accelerating growth for successful companies by guiding them through every step of the complex but beneficial process. Are you ready to take your business to the next level? Reach out to hear more about our expert franchise services today!