The number of business owners who are considering franchising is on the rise. It’s a trend which applies both to people who wish to turn their business into a franchise, and those who wish to connect their business to a larger brand as a franchisee.
The following 5 fantastic tips apply equally to those wishing to turn their business into a franchise, and those wishing to connect their business to an existing franchisor.
Do Your Research
As Alexander Graham Bell once famously said, ‘Preparation is the key to success’. So the most important part of franchising your business should always be to do as much thorough research as possible, to get a handle on your intended market, develop a business plan which will see you through your transition, and identify any future problems before they arise.
Most crucially, you will need to find out what opportunities there are for franchising in your prospective location(s). Whether you’re looking to become a franchisor or a franchisee, you’ll need to make sure that there are others out there who will be willing to connect with your business and help it grow.
Communicate Clearly, Concisely and Often
There are many factors which have the potential to derail a burgeoning franchise opportunity, but communication is the key to not letting these factors turn into out-of-control problems. Providing there is clear and extensive communication between the independent operator and the franchisor, prior to any contracts being signed, you’ll find that you’re much more aware of what will be expected of you, what benefits you will see, and what costs you will incur during the transition.
Identify Your Key Markets
For many, developing their business into a franchise means capitalising on the opportunity to grow their customer base by expanding into new markets. But before you begin your expansion efforts, you should always conduct a thorough analysis of both your target demographic and the potential pitfalls which might stand in the way of your new venture.
For example, expanding into an area of business which is experiencing a decline might mean that your new franchise is doomed to failure from the outset. Additionally, trying to market a popular product in an oversaturated market, or in an location in which your product will garner very little attention, is counter-productive and will result in your franchise seeing very little profit.
Trade in Your Independence
Perhaps the hardest part of developing your business into a franchise is coming to the realisation that you will no longer be able to conduct your business in a way that suits you, but will now be subject to the rules and terms of a franchise.
For many, this clause represents an insurmountable problem which stands in the way of their developing their independent business into a successful franchise. The only way to get around it is to be as thorough as possible when weighing up the pros and cons of your decision; so that any fears you may have about losing your independence will be assuaged by the prospect of trading it in for a chance at financial security.
Learn from the Best
Finally, to get a good idea of how your business might be successfully franchised, it’s always a good idea to take a look at some previous success stories. Whilst it may seem obvious, it’s something which many business owners forget to do. But by learning how other businesses managed to successfully negotiate the transition from independence into franchising, you’ll surely be able to pick up some key tips and tricks which you can implement into your own business plan.
Additionally, for more advice you may wish to consult with other business owners who have turned their businesses into successful franchises. If you’re thinking about becoming a franchisee, this may involve learning about how your potential fellow franchisees achieved their own successes within the franchising opportunity you will soon be joining.