Developing a successful business is a major achievement for any entrepreneur. For most, the next step is to grow and expand the business you have built. Franchising is one of the most effective proven models to rapidly grow and expand your business. Before you consider franchising your business it is important to know exactly what is involved and what is the process of becoming a franchisor.
Baybridge Advisory team have put together the basics of growing and expanding your business through a franchise model and what you will need to consider before diving in.
First off, what is franchising?
Franchising is a business relationship where the franchisor (the owner of the business) assigns independent people (the franchisee/s) permission to market and distribute the franchisor’s goods or services. This also includes allowing the franchisee to use the business name for branding and advertising purposes.
A franchisee is permitted to use the franchisor’s business trademarks and operation model. Essentially, this works as a fantastic marketing method. As a franchisor, this business growth model offers mutual benefits for yourself and your individual franchisees.
Why you should consider franchising your business
The below points are some of the great advantages that come with franchising your business:
- Your business grows using the manpower and financial resources of franchisees.
- A franchise network has the ability to grow and expand rapidly.
- As a franchisor, you have few staff challenges and fewer staff to take care of.
- You are not bogged down with the day-to-day operation of each franchise.
- You now have to ability to serve your products and services to a larger audience.
- Profits can be earnt without a high involvement of capital risk.
- Franchisees are motivated by their ability to make their own profits.
That sounds great but how do I know if my business is ready to be franchised?
The main challenge to a business wanting to franchise is proving that you operate a second business without any major problems or effect to profits.
Some points to consider are:oes your business have a solid track record of success? Over the time that you have been operating your business have you been able to clearly measure growth? Before you think about franchising you want to make sure that you have a business model that can be applied to replica businesses and managed by others.
- Does your business have a unique selling point (USP)? Is there a high demand for your products or services? Do you offer anything different to your competitors? You will need to make sure that you have a competitive edge over others, offering a service people will demand.
- Do you have systems in place? Tried and tested operational systems are essential to ensuring that franchisees can learn how to operate your business in a short amount of time. These procedures should be documented.
- Is the business profitable? Does your business have a marketable return on investment for a potential franchisee even after royalties have been paid? If not, then you will have a hard time keeping franchisees happy.
Who can help me franchise?
Baybridge Advisory are the experts in helping business owners such as yourself franchise. We understand that franchising a business may seem like a difficult task however we have worked with a wide range of clients both locally and internationally to provide profitable franchising solutions.
Our experts bring a wealth of knowledge to support your dream of franchising. If you are interested in knowing more about franchising and better managing your business, get in touch with us today.
Why our clients choose us?
- Getting franchise enquiries, but not sure what to do?
- Are you experiencing rapid growth and market attention?
- Is managing staff becoming a constant headache and time consuming?
- Is your cash flow limited for funding future growth?
- Have you proven your business concept?
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