Are you at a point in your entrepreneurial career where you are giving thought about how to create a franchise from your business?
Just like creating your company from the ground up, franchising your brand is no small matter. That doesn’t mean it can’t be done, however.
In this post, we’ll take a look at some of the steps you need to take to ensure you take the important steps and pay attention to the important details that go with planning to create a franchise. So keep reading to learn more, because the information you find on this page will put you on the path to reaching a wider audience through franchising your company.
Growing Your Business is a Matter of Knowing Your Business
When asking the question of how to turn your company into a franchise, you first need to ask yourself just how well you know your company.
As a strong business leader, one of the most developed characteristics you should possess is a well-rounded knowledge of every aspect of your business and how they come together to keep it going.
Knowing these things is essential to building business processes that will continue to help your company grow as a single entity, never mind a franchise.
So, assuming you know your own company in and out, what do you need to do in order to be a successful franchisor?
Know Your New Audience – Knowing your audience is one of the most important parts of running a business, and it’s equally important when you want to expand your company through franchise development.
Even if your plans don’t involve leaving the state in which you operate, it helps to know just what the demographics of various cities, neighborhoods, communities, and counties are.
Even within a relatively small geographic area, attitudes and beliefs can differ greatly. That means that what works for you in one place might not automatically work a few miles away.
Make sure you do your research into who your potential customers would be before you take any further steps.
Have the Right Staff in Place – When wondering how to create a franchise, you want to make sure you have a strong business team backing you up. Because you will be supporting more than one location as a franchisor, you will need people you can trust to take responsibility for your original location.
This means that they will need to have the skills, knowledge, and attitude necessary to keep your customers happy while you handle the shift that your responsibilities have taken with franchise development.
Put a Plan in Place for Franchisees – You want to make sure the franchises you support hit the ground running, which is why you will need to do another round of business planning.
At the most basic level, you will want to know just what kind of fees you want to charge and how long agreements will last.
In addition, when you create a franchise, you need to make sure franchisees know how to train any employees that they hire, how the business will be marketed, and where those franchise owners will get supplies from.
Laying this framework is absolutely necessary to ensure a successful launch, so you want to go over these things in as much detail as possible when you prepare to expand through franchise development.
Have the Money in Place – This is a step to franchising whose importance cannot be understated. Without the right amount of money in place, it’s easy for the whole venture into franchising to quickly fall apart.
Because no two businesses are the same and many different factors affect the way a company is run, there is no simple answer to how much you should set aside.
Keep in mind that, when you create a franchise, you want to look at legal costs, marketing costs, and a host of others in order to find the answer. This would be something on which you and your CFO would work closely together to figure out so that you can assess the true viability of franchising your company to others.
Leaving No Stone Unturned
In many ways, being a franchisor is starting a whole new business. With that in mind, it comes as no surprise that you can feel like following the steps you need to take to create a franchise from your company’s name can seem like a daunting task.
If you establish a strong foundation through the steps above, you can be sure that you will be on the right path to establishing an expansive presence that will make waves in your industry!
Do you have any additional questions?
Any more tips on creating a franchise?
Leave a note below and let us know!
Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at email@example.com.