Expand your business – replicate your winning formula
If you have built up a successful business around your own winning formula for delivering a local service, then it could be a prime candidate for franchising. Take our quick quiz, to find out.
Scale up by accurately replicating success – franchising requires you to fully understand and make explicit what it is that makes your current business successful in order that someone else will be willing to pay you for the privilege of doing so. That process in itself makes it more likely that each new branch will succeed and that the business as a whole will retain the original heart and soul that made it special to its customers in the first place.
Get rich slow – once you have perfected the package and the process of opening up new branches successfully, you can safely ramp up the speed at which you grow your network to expand your business. Once you have a viable and sustainable network in place, you can use it as a channel for new products and services. Franchising is a slow burn to begin with, but can lead to much greater gains in the long term.
Share the investment costs – franchisees contribute towards the physical costs of setting them up in a copy of your business, so it costs you less to get a new branch or outlet running. This makes franchising a less capital intensive way to expand your business.
Step back from your business, without losing income
- franchisees also pay you a share of what they make in return for the know-how, expertise and years of experience that has gone in to the ‘out of the box’ version of your business that they own and run; so you can keep earning from your business even after you’ve stopped being involved day-to-day. And because you have packaged all your know-how into something that now has a life of its own, you can step back, without jeopardising the business or it’s expansion.
Share the risk
- franchisees are business owners. Like you, they don’t get paid for just turning up. If their copy of your business doesn't work, they don’t make money, so they are motivated to put in the effort needed to succeed. If you match that effort with a winning business formula that you already know works, then the risk for both of you is considerably reduced. That’s why most franchise businesses succeed where most start-ups fail.
Outsource your management
- franchisees run their own business (according to your methods) and look after their own staff, premises, stock and processes. That means administrative overheads can be kept to a minimum across the board.
- franchises are the original LEAN. Packaging your business so that someone else can run it forces you to think hard about what you do and how you do it. Creating a successful franchise is all about putting in place processes that are streamlined, simple and that ordinary people can run like clockwork.
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