Entrepreneur Success # Franchising
# 5 Things To Do Before Brought to you By Michelle Peters- Partner of the Alchemy Network
Many businesses are suitable for franchising, but far fewer are actually ready to be franchised...
The single most important factor that establishes if your business could be successfully franchised is how easily your business can be replicated by others. Not just replicated by other ‘experts’ who are as talented, specialised, or experienced as the franchisor, but by people of average ability and/or with the average skills and qualiications within the sector in question.
But just because you have a business suitable for franchising, that doesn’t mean you should start franchising it right away. If you want to franchise successfully then it is essential that you take the time to properly prepare your business before you start.
This will be time well spent as you reap the rewards of your preparation by being able to attract better prospective franchisees, charge more for your franchises (whether upfront or ongoing fees) and ensure the long term success of your franchisees and of the franchised network as a whole.
Before you franchise your business, there are 5 things you MUST do:
Establish a Track Record of High Sales Levels and Proitability • A prospective franchisee will want to know that your business works in reality, not in theory, so you will need to have a pilot franchise with a proven track record.
Develop a Highly Effective and Reliable Sales and Marketing System • A Prospective franchisee will pay you signiicantly more for your franchise when you can prove there is a reliable system for bringing in new customers, getting them to buy more products and services and buy more often, and retaining them as customers for as long as possible.
• A franchisee will pay more for a franchise, which shows high levels of proitability, particularly if there is a Return On Investment (ROI) within a short period of time.
• Prospective franchisees will want to know that the track record of the pilot franchise is not due to luck, current economic climate, or the particular skills of the franchisor/manager running it. You must be able to demonstrate an effective sales and marketing system will give the prospective franchisee conidence that he or she can replicate the same success as the pilot franchise.
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