So you have made a start-up. Business is good and the company is growing. You now want to expand your business to other areas and widen your market base. During this time, you might consider franchising your business as an option.
Franchising is popular among business owners as it can help a business grow at a very rapid pace. However, it may not be for everyone. Franchising can be a huge risk if you do not take the proper precautions to ensure the consistency of your brand.
Here are several things to keep in mind when planning your franchise model.
Setting a Clear Concept
When you are running your own business, relying on your intuition can prove to be enough to be successful. However, when it comes time to franchise your business, a clear and concise plan is mandatory.
Every aspect of your business must be included in your system. Therefore, every franchisee must know your business inside and out. Before deciding to franchise, you must clearly layout what your brand and business is about. Failure to do so may lead to miscommunications, thus potentially resulting in the franchisee’s outlet sending a completely different message; potentially damaging or confusing your brand.
Choosing the Right Franchisee
The relationship between a business owner and a franchisee is a long-term one. Significant time and money will be invested and without careful recruiting, unforeseen problems could become drawn out and bitter.
Always have an array of potential franchisees to choose from rather than recruiting the first franchisee that shows interest. Additionally, refrain from favouritism, providing certain franchisees with better deals over others. Franchisees should also be entrepreneurial and innovative in nature, but still willing to conform to your business system.
Invest in Training
Good and solid training regimes benefits both franchisor and franchisee.
It can help franchisees understand the basic components for daily operations. It can also help franchisees have a smooth start, ensuring that employees are consistent in delivering both the brand’s message and adequate service to consumers/clients. Most importantly, it minimizes errors that will result in the franchisor spending valuable time trying to correct those errors.
Ensure that franchisees do not simply go off to do their own thing without your input. This is your business after all, and you need to maintain control over it. Ensure that you have a unified marketing plan. Ensure that operations encompasses all aspects of the franchisee’s operations, including promotional campaigns and accounting practices.
While you do want your franchisees to innovate and adapt, it should not compromise your business’ overall strategy.