Franchising can be a very good way of building your business, but it's worth asking a few questions before you start:
Are you ready for the increased responsibility?
Is it a unique business capable of thriving in a variety of markets?
Are you interested in expanding the size well as its profitability?
If your answer to these questions is yes, then your business may be a good candidate for franchising. Franchising can have many rewards, and even if your business is not quite ready to take the leap into franchising right now, there are a number of things you can do now to prepare for franchising down the road.
Profitability is a determining factor in the success or failure of a franchise. Potential franchise investors are interested in putting their money in a business that offers a guaranteed return. That"s why they are willing to put their hard earned cash into someone lese business model. By demonstrating a consistent record of profitability of your own business, you increase the attractiveness of your franchise
Documenting Systems and Procedures
Efficiency is the key to running an effective franchise. Successfully franchised businesses fine-tune their operational procedures and document them through easily-implemented operations manuals. The manual is the basis for all franchisee training, and is used as a day to day guide by the franchisee.
The advantage for the franchisee is that he/she doesn"t have to reinvent the wheel to find out what works. The advantage for you - the franchisor - is that you maintain a certain amount of control over quality and operations even after you have sold a franchise.
Long before you make the decision to franchise your business, you should begin grooming key employees who will be capable of helping you reach your goals. These employees should have a keen understanding of your business" operating systems as well as the ability to communicate their knowledge to others. A good starting point might be to identify a few, quality employees and involve them in the preparation of your business" operating manual.
Before you decide to fully venture into the world of franchising, you should consider the issue of piloting. Piloting is a good way of establishing a franchise (be it company or externally owned) and check your systems and procedures work. The lessons you learn along the way will give you a preview of the challenges you will encounter when you begin full-scale franchising. You will discover valuable information about the systems franchising will require and start to understand which geographic locations hold the best potential for future franchises.