If you’re at the point when you’re considering franchising your business, you must have done something right so far. Your business has been growing rapidly and now you’re thinking about setting it free and letting people buy franchises. But you’ve got to be very careful here because if you get it wrong, it could be the end of your business entirely. You’re putting your brand in the hands of other people and it’s important that you make sure that those franchises are consistent with your original business idea. If it isn’t, you’re likely to lose customers across the board. To make sure that doesn’t happen, take these steps before you go ahead with the franchise
Is Franchising The Right Option?
Franchising works well for some businesses but for others, it’s not the right option. If the service and product aren’t consistent then you’ll really struggle, and that’s harder to do in some industries than others. So, the first thing you need to ask yourself is whether franchising is really the right thing to do. It’s best to get in touch with knowledgeable franchise consultants who have more experience than you do. They’ll be able to tell you whether your business model lends itself to franchising or not and give you advice on how to move forward.
Is Your Business Protected?
This is a pretty broad question but one that you need to consider. It’s always important that you protect your business properly but it’s especially important if you’re considering franchising. That means making sure that any company data is secure, and put systems in place so your new franchise owners can do the same. You’ll also have to have another look at your business insurance to make sure that you’ve got the right protection there as well.
What Are Your Standards?
When you franchise your business, you put somebody else in between you and your customer. Until now, you can be sure that you’re giving them good service. But now your fate is in somebody else’s hands to some extent and you’re relying on them to be the face of your company. That’s why standards are so important and you need to communicate them to your franchise owners properly. But you can’t do that if you don’t really know what they are. You need to listen to customer feedback and find out what it is about your company that they love, and then draw up a list of those standards to pass on to your franchise owners.
Where Should You Start?
The final step is to work out where you should open your first franchise. That’s a difficult question to answer because if you get it wrong, the whole thing might fall apart. Market research is the key here because you need to work out where the franchise is most likely to succeed. Look at which demographics your company resonates most with and find a new area where they are prevalent and you’ll be able to find somewhere to open your first franchise.
Franchising is always a big risk but if you approach with caution and ask these questions first, it can really pay off.