You may be considering taking your business to the next level, but what does that mean? You want to increase your profit? Increase your outreach? Do you want to work less in the industry? Franchising your business may be the way to go, but before you can franchise your business, you must be sure that your business is ready. If your business is not ready for franchising, you risk wasting your money on a project that was not quite ready to prosper. Because franchising a business is so expensive, many business owners don’t’ have multiple chances to do it. Before you seek out a franchise consultant, answer some of these questions about your business:
Is Your Business Running and Working Well?
If you want to franchise your business you need to make sure that it is working on a singular basis. You will be duplicating your business model so any problems that your singular business has will be taken and put into each individual franchise location. Talk to any franchise consultants and they will tell you it is imperative to perfect your singular location before you try to make it into more than one. Not only this, but you will be selling a ‘how-to’ guide to your business when you franchise it. So while there are no laws in place that say a business that is struggling cannot be turned into a franchise, you will have a harder time selling and succeeding if you do not have a competent business. One locations financial troubles will only multiply with every new location.
Is Your Business Easy to Duplicate?
There is no way you can franchise your business if it is not easy to duplicate and affordable. If your business is not easy to duplicate, you may want to consider simplifying your operations to make it easier to franchise. Consider that for every franchise you sell you’re going to have to open a clone of your business that must remain consistent with the original and be cost effective for the franchisee.
Does the Market Want It?
Another way to ask this question is, “Will Your Business Sell?” or “Does the Marketplace Want Your Business?” You will want to consider not only whether prospective franchisees will be interested in your business, but do consumers want your business? Is there room in the marketplace for you to franchise your business with success?
Do You Have the Financial Stability Needed?
Just like when you opened your business, when you franchise your business, it’s going to be a large investment of time and money. You will have legal papers to draft and perfect, you will have to hire someone to manage your currently running location(s), and you will have to market your business to consumers and prospective franchisees.
Are You Prepared to Provide Value and Return to Franchisees?
When you franchise your business, you’re building a company for other people. You will be asking other people to invest their money in your vision which means they will expect a return on their investments via the success of their business / your franchise. While you do not have to have clean concepts of what your business may be testing five years from now, you should be prepared to provide franchisees with valuable products and services that will bring them a return on their investment and in turn, bring you a larger profit for your business.