Franchise As a Growth Option
Do you own a business that is successful? Do you want to break territorial boundaries and even make more money? If your answer is a resounding ‘yes’, then franchising might be a viable option for you. But before you take that plunge there are certain assessments that need to be made.
You need to ask yourself if your business is ready to expand. Do you have the ready finances? Do you have a structure in place? It is best to get to have a franchisor professional help you consider the pros and cons before you go ahead.
Here are some important things that you should look at before considering franchising as a growth option:
How Much Do You Have to Spend?
It is impossible to expand your business without having a sizable sum at your disposal. You will need to increase your operations and probably take on new staff to cope with the operations and developments. You might need to make payments to a franchisor that you find interesting. You might even need to make payment to a franchise business that you hope to take over. These things cost money. If you do not have any funds, you will not be able to take any significant steps.
Can You Cope With the Changes?
A franchise might mean increasing your territorial spread. It can also mean getting a bigger space or renovating the space that you have now. All this depends on the franchise that you want to set up. You need to understand what is required in terms of expansion, administration and personnel.
Keep up to the Market
You need to keep eye on the market and adjust yourself accordingly as do your competitors. Due consideration should be given to product/service age, sales growth, profit margin, quality etc. as loyal customers may be quick in finding alternative providers.
There are certain things that can facilitate the growth of a franchise. Ensure that you grow at your own pace, if you grow too quickly, your situation might become increasingly difficult to manage or contain.
If you are a potential franchisor, make sure you continually update your business plan. A business plan helps you to solicit funding, keep tabs on your current performance and point you in the right direction when a franchise opportunity comes along in future. Regular updating and revising your business plan will surely help in the healthy growth of your Franchise.