If you own a small business but are looking for a change, franchising is probably the best option for you to grow your company fast. It is essential to handle this move the right way if you want to boost your profitability. Here is a list of tips that will help you transition smoothly:
Think about the entire process of how your business functions. For their business to run smoothly, franchisees need to follow certain guidelines. This process takes a while, but it is ultimately worth the effort. Even if you ultimately decide not to opt for franchising, this experience will help you run your business better.
Handing out operations manuals to franchisees will provide them with quick access to policies. Everything from signage to marketing to business cards have to be executed in a very methodical manner.
Taking the advice of an expert will prove extremely useful during the franchising process. You will need to create a Franchise Disclosure document that will have a clear format that you would need to follow. Engaging the services of a lawyer to help you create this document will prove to be useful. The next step is to set the pricing, have the intellectual property protection aspect in place and create a Franchise Agreement.
Being selective is crucial while choosing franchisees. People with capital are easy to come by. However, it is vital to ask yourself whether they are the right people or not. Do they have the experience to run a business? Remember that the person you select will be representing you and your brand, making it necessary that they are a good fit for your business. Setting up a multi-stage interviewing process will prove useful.
Your most valuable asset as a franchisor is your brand, which makes it crucial for you to protect it in every which way you can. Your brand represents not only you, but also your beliefs and your work culture. When you choose to step into the franchising space, you are providing people with an opportunity to be part of your brand. This is probably the most significant risks of franchising.
Establish a clear set of guidelines for the use of all your brand assets. It is vital that you send one message from one source, and that message has to be evident throughout your organization. It is vital that you monitor everything in a detailed manner, especially all your social media presence.
Ask yourself questions like, which locations are best suited for your business. Where do you have well-established brand recognition? It is essential to keep the first couple of sites close to home, but not that close where it affects the sales of your original location. This will help you manage logistics in a better way. You might want to visit these locations now and then. If they are in another city, choose locations that have easy access to the airport.
Look for a mentor or advisor with some experience in the field. Strategic and steady growth is what you should be aiming for. Ask yourself whether it makes sense to expand your business on a national level or whether you will be better off with a statewide plan. Supporting your franchisees is paramount to the success of your venture. Encourage them as often as you can, and celebrate milestones. It will also be useful if you set up a way for all of your franchisees to communicate with each other via a common platform.
If you want to know more, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form and we’ll reply as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435