It’s common for someone with a profitable business to start playing with the idea of franchising. How do you know that your company is ready for this next step, though? Read on to find out.
1. Are you able to articulate your brand? Starting a franchise takes more than having an excellent business concept or even a proven track record, according to Entrepreneur. Branding is a huge part of franchising. You need to know what your brand is and what it does for your customers. Then you need to articulate all of this.
2. Franchises run on organization and systemization. It’s important to have solid, tried-and-true, organized outlines for everything from operations to marketing. You need to describe each and every area of operations and branding. A lot of people will be looking at your plans, including potential franchisees and the investors you have your hopes set on.
3. Now that you have your plans laid out on paper, consider how easy it will be to teach everything to a franchisee. The more complex your business, the more complex the training process will be. However, don’t be deterred. According to Quickbooks, even complex businesses and industries can be franchised, so long as you offer solid training.
4. Think about how much your presence has to do with the success of your business. In order for a franchise to be successful, it has to operate under the new franchisee, which means it needs to thrive without your personal or entrepreneurial touch. If you have a homegrown business that’s seeing success in a small town, it may not be easy to replicate that success elsewhere.
5. Make sure you’re willing and able to work well with others. You’ll need to partner up with a lot of experts in order to turn a business into a franchise. Franchisors have to delegate and they have to be comfortable giving up some control. You’ll need to work with PR experts, advertisers, graphic designers, equipment providers and more. This is when truly being a leader comes into play.
6. Decide if you have the money to start a franchise and if you’d still be okay if you lost it all. You don’t want to lose your current, successful business because your franchise doesn’t work out. Ideally, you’ll have your own financial stake in the franchise and you’ll also have investing partners. The cost of starting a franchise is huge and you need to be prepared for that reality.
Everyone knows that launching a franchise comes with risk, but so did starting a business in the first place. There’s a lot of money to be made in the franchise world, so long as you do it right from the beginning.