When you feel like your business has gotten big enough, you might be tempted to rest on your laurels for a little while and rake in the dough. But no matter how big your business grows, there’s always the potential for more growth and opportunities. That’s when the question of business expansion comes in, and more than just mere expansion comes the question of franchising.
Franchising can be a big step for any business. It isn’t for everyone, but it does present a particularly lucrative opportunity for all businesses. With a successful franchise launch, you can bring in even more customers, more sales, and more opportunities for your business to expand. Who knows, your business could be the next big franchise in the industry. No matter what industry you’re in, having a good franchise plan can make all the difference in its growth. So here are five tips to help you establish a successful franchise and keep it growing from there.
Evaluate Your Company’s Choices
Before you jump on the bandwagon and go all in, you need to take a step back and evaluate your company or business’s current standing and choices. You need to ask yourself if the time is right to expand to a franchise and if you have the right resources and budget to franchise your business. As mentioned previously, franchising isn’t for everyone. Maybe part of the charm that endears customers to your business is that you’re a small, independent business that isn’t part of a larger corporation.
You also need to evaluate what exactly your business brings to the table if you choose to franchise to a new area. What do you sell, and how can you market it to a new audience in a new area? Would it work well as a franchise? Would people actually want it to be a franchise? Make sure that you evaluate all your possible choices and options before making a decision as big as this, and make sure that you and your business are ready for this.
Fulfill All Legal Requirements and Paperwork Before Registering
As with all things business-related, you’re going to need a ton of requirements and paperwork before you can register your business as a new franchise. These include a Franchise Disclosure Agreement and other state-specific requirements that you need to fulfill before your registration can be approved. For these, you’ll have to prepare your business’ financial statements and a business plan for your future franchise. Most of all, you have to prove that your business and your team are ready for a franchise and can afford it, which is why you need to evaluate your business before you apply.
The process can be long and daunting, but as long as you have a good business plan for your franchise, you need to fill out all the paperwork and submit it to be approved.
Create a Good Franchise Marketing Strategy
So you’ve officially registered a trademarked name for your franchise. Congrats! Now it’s time to find people interested in becoming franchisees. Your franchisees will basically fill the same role that you do in running and managing your business, except they don’t own the rights to it. To do this, you’ll need an effective franchise marketing strategy that can sell your franchise ideas to them and prove that your business is worth investing in. There are many ways to do this, but a standard method uses the same strategy you might already use to market your product or business.
The most important thing to consider is building brand awareness and having a comprehensive business plan that focuses on bringing in a high return on investment. These can all be very important in finding franchisees and even customers.
Choose the Right Location
Finding the right location for your first franchise is essential because it can often make or break a business. First, you need to take into consideration all sorts of state laws. Different states have different business laws, all of which you’d have to comply with if you intend to operate a business there. They’ll have different requirements and processes, so be well-prepared for that.
Aside from legal matters, you’ll also have to take into consideration the costs. If you plan to set up a franchise nearby, hiring local movers for a low price might not be an issue. However, if you plan to move somewhere a little farther, you might need to spend more money moving your equipment from your prime location to your new one. On top of that, there are real estate costs, such as mortgage payments, construction costs, and overhead expenses.
Of course, there’s the audience. Does your target audience comprise a large part of the population? What kind of things do the people in that area want or need? These are all things that you need to consider when choosing a location.
Find the Right Franchisees
Just as you should be discerning when it comes to location, you should also be discerning when it comes to who you sell your franchise, too. When looking for a franchisee, you need to ensure that they have the right business experience and vision to help you build and grow your business. You don’t want to give it to just anyone. Becoming a franchisee is a big task, and you’ll essentially be handing your business over to a stranger if you don’t manage your new location yourself.
Make sure they have all the right qualifications, and don’t be afraid to ask a ton of questions when you’re considering selling your franchise to them.
The importance of a comprehensive business plan cannot be overstated enough and should be prioritized over everything else. With these five tips in mind, you’re well on your way to expanding your business and making the next big franchise chain in the country.