Business Tips: Starting a Franchise
When it comes to growth, franchising is a proven technique. In fact, franchising is a proven technique for rapid growth, which is the kind of growth of which all business owners dream. However, turning your business into a franchise isn’t an automatic route to success. You can’t just click your fingers and have brand awareness like McDonald’s. You have to work at it and understand the process before it begins to pay dividends. It is a long and costly process, and even if you do qualify it doesn’t mean you will necessarily find a buyer. To ensure that you do everything in your power to make it a success, follow these tips to becoming a new franchiser.
Is Your Business Ready?
A lot of businesses see the dollar signs and automatically make the decision. Yes, there is a lot of money in franchising, but you won’t see any of it if you get involved prematurely. Firstly, you need to have the track record of sales and profitability at the existing company. If you don’t have this foundation, the transition will never work. But, there is more. Is your concept good enough? Do you have the financials? Are you prepared to change? Or, is there another alternative that is more suitable? Answering these questions will help you determine whether you are ready to be a franchise or not.
Learn The Legal Requirements
You cannot just step up a franchise and go on your merry way. You have to do it legally and go through all the relevant avenues. For example, in America you have to register a Franchise Disclosure Document with the Federal Trade Commission. Other than the national requirements, there might be local regulations that you have to sort out. The local restrictions can be more daunting and expensive than the national ones.
Register As A Franchiser
Once you have all the legal paperwork completed and you have made all the relevant decisions with regards to your business model, submit your business as a franchise. It can take an incredibly long time for the relevant authorities to get back to you, so the sooner you do it, the better. Still, don’t rush into it if you are not ready.
After your submission, the regulatory body will get back to you with any changes that you need to make, as well as critiques that you have to take into consideration. Just when you think you are done, they hit you again!
You will need all the help you can get, so hire employees who can focus solely on making the transition into a franchise. Trainers and franchise advocates and can answer any questions and resolve problems that arise.
Advertise Your Franchise
The whole point of the transition is to make more money, right? So, like any business you need to advertise the fact that you are a franchise. If you don’t, no one will invest in the company and that is obviously bad for business. Companies such as Franchise Business Review advertise a wide range of franchises for purchase, from painting companies like CertaPro Painters to carpet cleaning companies like Heaven’s Best Carpet Cleaning. Websites such as these are great ways to create a buzz.
The internet is just as important a tool to maximize your brand awareness. An Online presence and SEO is essential for creating traffic and turning traffic into business.
Franchising isn’t easy, but if you follow the tips above you can make your franchise a success and earn a lot of money in the process.