Your business, which you have built from the ground up, has seen phenomenal success over the years and, now, you feel that it is ready to move forward into the world of franchising.
Franchising is a great way to expand and grow your business, but with smaller risks. Because your franchisees will pay you, you expand your number of locations without using your own funds. It is an exciting next step for your business, but are you ready for it?
You Know Your Business Like the Back of Your Hand
The first and most important question you need to ask yourself before you enter the world of franchising is, how well do you know your business? It is easy to say that you know your business to the core, but articulating your processes in a way that franchisees can replicate is rather complicated.
When you begin franchise development, you will have to draw up a plan that will involve writing down every tiny detail of the processes that your business goes through daily. Some might find this difficult because they have grown so accustomed to running their business that they do things based on intuition.
Unlike you, your franchisees will not have the benefit of improvising, so you have to have a clear idea of how the business is run. Your business model should be clear, concise, easy to follow, and can be duplicated.
Is Your Business Model Working?
Another question that you need to consider is, is your current model working? Although you might have been in the industry for long, you have to show that there is consistent growth and potential for expansion. There is no law requiring you to prove that your model is working, but it will help you sell your franchise to aspiring entrepreneurs. Your business needs to be attractive in order for you to sell that it is franchisable.
How Do You Want Your Business to Grow as a Franchise?
Growth depends on the kind of business that you have. For some, growth means bringing the business across all states and, maybe, internationally. For others, it might require opening only a few branches in neighboring towns.
While most business owners want to see their business become an empire, it might not be feasible. Entrepreneurs have to believe in their product, but that should not cloud their judgment. It is not bad to dream big. It can, however, impede growth and cause financial ruin to the business if your vision for your business is not realistic.
Support Your Franchisees
It is up to your franchisees to run the franchise, but your responsibilities will not completely disappear once they sign a contract and make their payment. Part of your task now as a franchisor is to share your expertise. You have to be in constant communication with franchisees in order to make sure that every aspect or part of the agreement works efficiently.
You also will have to work with multiple experts who will perform different tasks within your business. You no longer are the only person making the decision; you have to delegate work to create a unified system that benefits your franchisees.
When you have answered yes to all these questions, then perhaps you are ready to take the first steps into building your empire. Create a concrete plan, screen all potential franchisees, and watch the business you build grow.