Helpful Business Franchise Strategies for Aspiring Franchisors
By Mike Hirst
Many people are aware of the top fast food franchisors such as Subway, Dunkin’ Donuts, McDonald’s, and Pizza Hut. Nevertheless, what many individuals are unaware of is that these giants all started out as small businesses. If you’re thinking about following the footsteps of your favorite fast food chains, why don’t you use some business franchise strategies that can help you boost your business and increase your chances of success in franchising?
Of course, there are no guarantees in franchising. However, if you apply all the right business franchise strategies for your restaurant, retail store, beauty salon, gym, or what have you, you are likely to overcome the risk and succeed in your attempt to grow your business.
The cost of franchising your business requires a small investment, as compared to building a new structure and hiring personnel to operate your store. One of the best things about franchising is that after investing and developing the business model or system of operation, all the remaining costs of the expansion are transferred to your franchisees. In addition, all the risks associated with the business are passed on to them; this is the case because franchisees pay you a straight up fee and royalty payment which, in essence, is your slice of the revenue pie. With the correct business franchise strategies, franchising your business can be an almost immediate money spinner.
All business strategies, whether for startups or franchises, require establishing goals and processes. In general, however, strategies for successful franchising include: consulting, designing, building, analyzing, enhancing, establishing, deploying, and realizing. These may sound a lot but in reality, they are simple processes that only need to be followed carefully.
Before finally deciding to franchise a business, it’s very important to find out about your franchising potential by doing a feasibility study. Research about your target markets, where they are, how a franchisee would suit the business, how a franchisee would generate profit, etc. Know about the industry as much as you can and use the information you’ve gathered to help you design the franchising system, including the advertisement cycle, recruitment manual, website content, franchise agreement, operations manual, and training systems, among others.
Using the model processes that you have designed, it’s about time to build and roll out the franchise. Try to open a couple of units and learn how the business concept works in various locations. Try to analyze the systems and processes. Have them tested and verified to figure out your likelihood of success. If there are details that need improvement and modifications, don’t be afraid to implement changes. This is part of the enhancement process and is very crucial in business growth.
Now that everything has been prepared, tested, and approved, the complete process is now ready to be established. The business is now ready to reap its rewards and realize its goal. These business franchise strategies are what make up the framework of successful franchising. The process needs to be systematic, as missing a step can make or break the business.
When making a decision as important as franchising a business, you definitely want to be sure that you’re going to last long and reap the full benefits of franchising your business. While there are no guarantees that franchising will always work in your favor for the next several years, there are a number of ways to position yourself for a greater chance of success. It’s pretty simple, franchising your business is among the best ways of expanding it on every level.
However, if you’re new to the business, you’ve got to employ business franchise strategies that will serve as your guide as you embark on your franchising journey.
