If you are keen to turn your existing business into a small business franchise, then read on. It means everyone can buy the rights to use your business trade name, trademark and business model to set their own businesses. In the end, you charge them royalty fees in addition to the initial fee. You need to determine how successful your business has been before you start the procedure of turning it into a small business franchise.
Characteristics you should have to succeed in a small business franchise:
– You should be ambitious: A small business franchise will require you to be ambitious to expand and meet set goals and targets.
– Should have leadership and management skills: You need to focus and lead by example if you are to succeed as a franchiser.
– Requires innovation: You should be able to get new ideas to grow your business.
– Set pilot models: You should test your ability to run a franchise first by operating a few outlets that are complete replica of your current business.
– Build strong networks and teamwork: The franchisee must be willing to cooperate and give their best in everything they do to ensure maximum profits at the local and national levels.
How to start a small business franchise
1. Seek the services of a franchise consultant: A franchise consultant will assist to execute your plan. They act as a link between potential franchisees and you, the franchisor. They will also offer you invaluable advice concerning important areas such as marketing and advertising.
2. Seek the services of a franchise attorney: A legal expert will also assist you to design a good franchise agreement. This agreement contains information about your rights and those of the franchisees and the amount of fees in general they are supposed to pay you.
3. Marketing your plan: Go out and spread word to potential investors that you want to franchise your business. A franchising consultant can assist you in this role as they act as a link between you and the franchisees. Research well from the internet and other successful franchise businesses.
4. Change your management style as your roles will now be different. Ensure that your franchisees have fun during training, periodic meetings, and all other activities that they engage in.
Coming up with a small business franchise has an advantage in that you will enjoy the growth of your business from other people’s funds. More people are franchising in order to expand fast.
Other advantages of franchising include:
– Franchises can be set up fast
– A franchiser is an entrepreneur i.e. is responsible for the profits and losses.
– You get to be always highly motivated and psyched up.
Basically, you will need to set up the same model in all other franchises. You can choose the same uniform, same logo, trademark, and signs. The franchisee sells his own products, but using a model that has been tried and tested. The pricing may also be similar for the purposes of advertising. If you are decided to put your efforts into a small business franchise, do your research homework and consult widely.