Ever felt like your business has so much potential but lack the necessary knowledge to take it to the next level well franchising your business might be the perfect solution for you. Franchising your small scale business is a great way to procure the desired business growth while minimizing other costs and tensions that comes with the expansion process. By franchising a small business, you are essentially leasing your business model, brand, and standardized operating strategies to another entrepreneur. Franchisees receive a proven business model and ongoing support in return for franchise fees and royalties. Despite the challenges of franchising, it can also be rewarding financially and professionally.
Is Franchising The Right Move For Your Business
Franchising help you to explore new markets with the help of partners who have excellent knowledge about the local markets and ideas required to make it a success. This partnership help you to grow your business while sharing the financial liability with the franchisees, which arguably reduces the franchisor’s risk. But how do one know if his business eligible for being franchised?
Here are a few things to be analyzed to determine whether your business is fit for franchise.
Good ROI. Establish the profitability of your business and demonstrate that someone investing time and resources can expect a similar return.
Simple operations. Is it possible for someone else to follow your playbook and succeed? Start by streamlining your operations without compromising quality or ROI, if the answer is “maybe.”.
Support. Could you support someone else’s franchise needs as they establish their own business? Now you will be supporting someone else and setting him or her up for success instead of running a business. Put together a team that can make this happen.
On analysis of the above factors if your are confident that you can provide these services to your franchisee then you can move forward towards franchising your business.
Once you have made up your mind about franchising following these steps might further simplify the expansion process.
1. Make a detailed study about the market you are expanding to. Make the 1st phase marketing plans that needs to deployed at the same time the franchise is being set up to attract customers. Develop a growth plan and think strategic ways to increase growth.
2. Put your business operations into a step-by-step plan that you can easily follow. From the time you purchase the opportunity through the financially successful completion of the first year or two of franchise operations, you should cover as many operational aspects as possible.
3. Consult a franchise lawyer or a professional familiar with franchising of business entities before drafting your franchise contracts, leases, and royalty agreements.
4. Make sure your franchisees are guided by a service and support team. Franchisee concerns can be addressed by your service and support team, and quality control can be ensured by them. Maintain high internal quality standards and establish service standards.
Ensure That Both Parties Enjoy The Benefits Of Franchising
One of most iconic features of franchise business is that both the parties share the equal amount of risk and benefits. This shared model of the franchise business provides benefits for both the franchisor and franchisee alike.
Both parties benefit from the joint venture, as the franchisor receives capital to expand the business and the franchisee receives knowledge from the franchise company to ensure success. As a franchisee, this means having a trusted partner who has done all the work to deliver a package that you can build upon with your own hard work and contributions.
When searching for a franchisee, look for someone who is financially stable and has proven business acumen, as well as someone who will follow the system you establish. There is more to finding the right franchisee than just that. Franchise BAZAR helps you to connect with prospective franchisees for your business.
Establish a well-defined company culture if you haven’t already. Once you have established a culture search for people who have the ability to mimic what you have put in place. The people you are going to tie your hands with should have a clear love and passion for the industry you are in. If you are unable to find the right guy or make a mistake while evaluating a person, none of the above-mentioned factors matter.
The franchise sector in India is one of the largest in the world, the sector has estimated valuation of about 200 million dollars as of today. Apart from this India has one of the world’s largest younger population in the world the young population raises the demand for more services that can meet their demand this in turn opens up the franchise market for more players.
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