So you are thinking of franchising? It’s an exciting yet also scary concept. Who will buy? Will it work? There is a world full of possibility and growth for your business…if it’s well thought through. Here are a few things you need to think through before starting your franchise.
- Feasibility – There are various options for company growth: franchising, licensing or internal company growth. Some concepts work well for some businesses and not so well for others. If you’d like to franchise you need to think through the feasibility first. A few examples of things that you need are proven success, profitability, business models that show franchisee profitability, and repeatability, the ability to take your concept and drop it into new locations and make it successful. As you can see, it takes more than a good idea.
- Strategic planning – Once you’ve decided that the concept is feasible for franchising, now what do you do? Key to successful franchise growth is strategic planning. You need to think through your vision for the company in terms of geographic locations, organizational structure, and strategies for continued innovation. How can you communicate your vision, sell the brand, and continue to offer value to your franchisees? Determine your vision and then back up and determine steps on a monthly/quarterly timeline on how it can be done. If you need help in this area, let us know.
- Documentation – Once you have your strategic plan in place it is time to get down to the nitty gritty of your business. One of the first things a potential franchisee asks is to see your operations manual. They are looking for assurance that you have systems, that they are well documented, and that they are repeatable in their location. Using proven professionals to walk you through this process allows you to see your business from an outside or customer’s prospective. Outside consultants walk through your processes with a fresh perspective and streamline and improve things you are already doing well. Your business is then documented into a manual that is used as a training program for franchisees and potential employees. The development of this manual then assists in the development of your legal material, the Franchise Disclosure Document (FDD).
If you think your business is ready to franchise, let us know and we can help answer your questions and start you on the path to success!
