How to Start a Franchise
Starting a new franchise requires careful planning, vision and the ability to develop excellent relationships. There are many businesses and industries where franchise distribution is a viable expansion model and certainly in most business categories there are examples of fantastic successes in franchising. But how did these entrepreneurs start their franchise expansion journey?
First, it started with an understanding for scale and a single entrepreneurs humility to understand that there is more of a market for their product or service than they could conquer on their own. Starting a franchise model to scale and leverage independent franchise ownership allows the business owner to leverage franchisee’s capital and commitment to their own small business. Next, the business owner must develop a mutually beneficial structure to the franchise offering.
To start a franchise means to offer a partnership to new franchisees whom will invest their money, time and hard work into the business. They too must win and see value in the franchise not only to make the decision to join, but also to stay and support the franchise brand. Then, when you start a franchise, you must develop your systems, processes and operating models in a way that will allow for approved franchise candidates to duplicate your business in their markets. Training, support, technology and other variables will pay a significant role in how effective a franchise will be. Then, to start a franchise, marketing, business development and branding need to be structured to attract and sell the vision of the franchise offering.
Franchisees should see and understand what potential for success they have with your brand and be able to understand how they fit into your plans for expansion. Particularly when first starting a franchise, you should plan on attracting a large volume of potential franchisees due to the lower conversion ratio of leads to franchisees. A new franchise brand will require a larger number of candidates to convert franchise sales, so you should have the marketing, lead generation and sales processes in place to facilitate this franchise marketing venture.
Great franchise models are selective in who they allow into the franchise network, set your buyer profile and be careful in who is given the opportunity to join. Finally, when considering whether to start a franchise, you should understand your personality and ability as a leader. Great franchise systems are facilitated by great leaders who see value in others and are effective in nurturing relationships and helping others be successful. Before you start a franchise model, you need to be willing to take on the responsibility of others financial futures, lives and well-being.