If you already run a successful business then you may be wondering about the possibility of franchising it. So long as your business makes good money and you can teach others how to replicate it then yes, franchising is an option. It takes a lot of money and effort to launch but it usually represents a cheaper way to expand than other more traditional business models.
Firstly your business product or service must have proved itself to be successful and able to generate more than a decent yearly income. That's very important because without that fact in place, and the financial statements to prove it, you will not succeed in signing franchisee's.
The main reason for someone buying a franchise is to make money and lots of it.
O.K so you have a business which is successful and you can prove it, next can it be done anywhere or is it particular to your location? Do you have some unique skill which others won't have? For a franchise to succeed it must be very user friendly. That means this business can be done anywhere by anyone with the will to learn it.
The extent to which it's easy for someone else to copy what you do is at the heart of franchising. It's what defines the word so you better make sure your business fits that criteria.
Much thought will have to be put into breaking down the business for someone else to learn. You'll need to write a very detailed Operations Manual explaining every facet of the job and back it up with in person training days as well. These can last anywhere from 1 day to 1 week normally. Your business cannot be so complicated that a complete beginner is going to struggle to learn it.
Of all of these things however, the level of income a person could potentially generate by taking your franchise on is the absolute most important factor. It's the biggest single selling point which will convince people it's worth the initial investment they'll pay you to buy the franchise and take the risk.
There's still a long way to go and in part two I'll talk about the remaining stages in franchising your business. Just because you have sold a few does not mean you are successful, in fact, it only puts you at the starting gate. There's still tons which can go wrong!
Firstly your business product or service must have proved itself to be successful and able to generate more than a decent yearly income. That's very important because without that fact in place, and the financial statements to prove it, you will not succeed in signing franchisee's.
The main reason for someone buying a franchise is to make money and lots of it.
O.K so you have a business which is successful and you can prove it, next can it be done anywhere or is it particular to your location? Do you have some unique skill which others won't have? For a franchise to succeed it must be very user friendly. That means this business can be done anywhere by anyone with the will to learn it.
The extent to which it's easy for someone else to copy what you do is at the heart of franchising. It's what defines the word so you better make sure your business fits that criteria.
Much thought will have to be put into breaking down the business for someone else to learn. You'll need to write a very detailed Operations Manual explaining every facet of the job and back it up with in person training days as well. These can last anywhere from 1 day to 1 week normally. Your business cannot be so complicated that a complete beginner is going to struggle to learn it.
Of all of these things however, the level of income a person could potentially generate by taking your franchise on is the absolute most important factor. It's the biggest single selling point which will convince people it's worth the initial investment they'll pay you to buy the franchise and take the risk.
There's still a long way to go and in part two I'll talk about the remaining stages in franchising your business. Just because you have sold a few does not mean you are successful, in fact, it only puts you at the starting gate. There's still tons which can go wrong!
About the Author:
Payo Hernandez has set up and runs his own successful franchise. He also writes popular product reviews and you can see his guide to Keys fitness equipment. You'll also discover popular info and deals on Proform fitness equipment.
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