Ready to franchise your own business?
If franchising is the next chapter for your business, you’ll need to ask yourself a few crucial questions, says Phil Mowat
Could you take your business to the next level? Franchising your business is akin to opening a door on a realm of fresh opportunities. But as it’s not for every business, how do you determine if yours is ready (or even right) to expand by franchising? Consider the following:
1. Have you proven the business is successful? Franchising hinges upon the replication of a financial blueprint that has previously been proven. A company with ideally a minimum of two years of financial records is a promising start. By this point, navigating the rocky start-up phase should be in the rearview mirror, and a well-grounded system should have taken root. A successful franchisor has already learned from mistakes, identified challenges, and devised remedies. This groundwork lays the foundation to showcase to potential franchisees that your business model is effective and merits investment.
2. Do you have reproducible and teachable processes in place? Transferring your core business procedures to another party within a reasonable timeframe is paramount in franchising. If your model necessitates specialised skills, the pool of potential
franchisees might be limited. Reflect on your existing systems and
processes. Are they comprehensive and user-friendly? Can they be executed seamlessly without extensive training? Investing time to refine your business model's professionalism and efficiency is crucial before marketing it to potential franchisees. A professional, polished
“Franchising your business could well be the best decision you have ever made”
business proposition that is ready to hit the ground running attracts interest from potential franchisees.
3. Will there be a win-win outcome for all parties involved? Franchising isn't suited for businesses with slim profit margins. There must be a substantial operating profit to sustain growth and innovation while ensuring both the franchisor and franchisee secure a reasonable return on investment. The franchisor requires an adequate profit margin to provide robust support, facilitate development,
and enhance the franchise offering. Similarly, the franchisee must have enough margin to establish a profitable enterprise, considering their dedication and commitment, and recoup their investment during the agreement's lifespan. A win-win relationship between franchisee and franchisor is the bedrock of success.
4. Are you dedicated to nurturing others' success? The success of franchising hinges on your attitude and commitment. Franchisees aren't mere employees; they're self-employed business owners deserving of equal treatment. As a franchisor, your leadership should wield authority while allowing room for dialogue. Franchisees deserve the space to voice their ideas and suggestions, fostering a collaborative environment. Your mission is to build a flourishing business alongside your franchisees, not merely because of them. Franchising is a long-term strategy where both parties reap rewards for it to prosper. Franchisors must be deeply
committed to working with others in realising their business model's potential. This entails relinquishing control and empowering others to succeed with your blueprint. Being a great communicator
20
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116
