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| Turn your business into a franchise. |
According to Wikipedia, a small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorship. However, any small business need not stop at this level. There could be a chance that this will work out for another person or group in the form of a franchised agreement.
Franchising, in principle, is practicing another company’s or firm’s business model based on terms and conditions or an agreement.
Here are 10 questions that must be asked to know if a business is good for franchising.
1. Is the business really successful and different?
It has to be proven that the business has been successful throughout the years and has a good track record, and has a unique quality. Solid evidence must support these claims.
2. Could its success be replicated?
A franchisee should not need to acquire new specialised skills, but rather be able to apply the systems and methods provided to reproduce the successful operation of the business.
3. Do you have a standout brand?
This is important because franchisees would want a company that already has an established name and a high-level recognition in the market.
4. Do you have detailed, tested business systems?
A franchisee would want to know if all the elements or components of the business are already in place. They should not want to have to work things out for themselves.
5. Can your business continue to adapt, evolve, and grow?
Handling a business also means being able to constantly adapt to the changes and challenges around. Competition and new market conditions can destroy even successful companies if they are not adoptable.
6. Have you got the necessary skills and attitudes?
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| Famous business franchises |
Being in a business is tough. When you attempt to extend running your business to running a franchise, additional skills have to be developed. One example is communication skills that will be required to train the franchisees.
7. Can you create a realistic market plan?
It is important for the business owner to hire professionals to help in creating the marketing plan. Since the company is looking for possible franchisees, a convincing marketing plan is necessary. This may include having to promote the franchise brand, help franchisees market their individual businesses, and market the company’s franchise offer to possible franchisees.
8. As a franchiser, can you keep adding value to the business?
Being a franchiser does not mean staying confident, complacent, and relaxed the whole time, expecting the money to keep rolling in. Remember that competition always has changing trends, and the franchiser has to develop and refine the business model to stay ahead.
9. Will you have adequate financial reserves?
Make sure the company has financial reserves in place to support franchisees in the initial stages.
10. Do you have access to specialist franchising expertise?
Franchising involves complex legalities which may be difficult to handle for the business owner themselves. Expert advice must be available to yield the best results.
Franchising can be complicated endevour, for it involves larger management coverage. Therefore, it shoul be well thought through before being undertaken.
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Franchising your business is a proven route to rapid growth. But becoming a franchisor is not an automatic ticket to success, especially in this challenging economy. Will certainly visit your site more often now.
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Thanks for your comment. There are advantages and disadvantages when you engage in franchising, and these should be noted so that you'll know what you have to risk and gain if you become a franchisor.
When you're about to start a franchising business, you need to have a strong management to handle your company. A franchise requires a lot of work and sacrifice. But once it has a strong foundation as a business, it can be very successful and enduring.
Clint Shaff
This is a really a good piece of information for me as I want to convert my family business to a franchise. Can you suggest me any agency or consultancy that I can consult in this regard?
It is necessary to ask yourself if your business is ‘franchisable.’ And be able to provide concrete explanations as to whether or not it is franchisable. Success isn’t the sole basis to decide whether or not you should franchise your business. It should be able to generate profit big enough to attract potential franchisees. And the most crucial part is, as you’ve said it, you have to be 100% sure that your franchisee will be able to experience your success. You should also be willing to provide support in training and marketing. It is laborious so you should have a big heart to succeed!
- Lonnie Lisa