Franchising is still a relatively new concept in business and if you look at some of the massive business empires that were built just in the last 50 years then it goes to show just what a franchise can do for any business. When we think of a franchise we tend to think of fast food outlets like Burger King, Taco Bell and KFC, but franchises have spread like wildfire into virtually every sector of the economy. Supermarkets, health food shops, clothing stores and even car washes. Virtually any business can be franchised but there are some important things you need to keep in mind.
Franchising your own business can be a huge step. Its the ultimate form of leverage as it gets other people to grow your business for you. They profit and you profit and the win-win relationship can be a very profitable one.
For you to franchise your business it obviously has to be successful. You can only do it with a successful and a proven business model. Nobody will buy your franchise if the concept is in doubt. You need to have a refined business model that is proven to work and that has a solid track record.
Any good business has systems in place and these systems allows virtually anyone to run the business. Think of McDonald’s – it’s basically run and managed by teenagers which is a testament to the great systems they’ve got in place. This means that you can quickly grow the business because you don’t have a long learning curve for new employees and there is very little room for error.
If you were to take your business and open 3 new branches yourself (and with your own capital) it can be a logistical nightmare. No-one can run 3 businesses. But, if you sell the franchise to 3 separate business owners, they will start it themselves, run it and grow it and you get your franchise fee and a percentage of the profit. Effectively you do less and earn more.
Franchising your business is the fastest way to grow. Its also the best way to build your brand and to expand your reach without taking all the risk upon yourself. Although you do sacrifice some profit, the growth potential is immense and unlike anything you can achieve on your own.