The life of any business lies with how successfully it can increase its sales and steadily make money from all of the products and services that it is trying to sell.
Therefore, if a business company does not put much effort into expansion, then there would be fewer sales than the company that continuously strives to grow it whichever way it can, because it would mean less exposure to the buying power and you would have very little hope for a loyal follower. Also, if you wanted to expland your business, constant release of advertisements is a must!
Sure, quality goes first and it definitely speaks for itself, but how can the people find your products and services if you are not going to properly promote it, especially in the business world where competition and stakes are always high. And how would the investors put a stake in your business if you have no concrete plans for the future direction of your company?
Now that the business world is thriving though and many people are learning the importance of investments for their own financial security, expansion is right in front you and all you need to do is take the chance and open your business for franchising!
What is Business Franchise?
Every entrepreneur dreams of making their businesses grow and expand in order to increase the profitability, the security of their business, and attract more investors for further development.
Most entrepreneurs go into this route because it would help in the rapid expansion of their businesses without taking so much risks and losing a lot of capital.
After all, franchising your business means selling the rights for another party to use your brand, logo, products and services, and almost everything attached to your business while giving you a more flexible schedule since there is no need to be part of the day-to-day operations of the franchise store while also allowing you to open in multiple locations and being more exposed to the crowd. Plus, you ear a lot of money when the franchised store thrives!
How Do You Do It Open Your Business for Franchising?
STEP 1: Self-evaluation
Of course, before even thinking about franchising your business, it’s very important to take some time to evaluate the internal state of your business including the financial aspect, managerial aspect, and your overall and specific goal for your company.
First off, it is highly crucial to perform thorough research, because even though your business is highly successfully, turning your business into franchise would definitely change everything, and since you cannot be sure if the franchise would take off as successfully as your flagships store did.
Plus, you need to learn everything about your target market and if your business concept is good enough to relate to wider audience. For example, you established a Chicken Restaurant because you know that it’s an in-demand food today and has potential to grow in the future, but there are hundreds of Chicken Restaurant that you would need to complete with, so there is a need to research about the possible ways to make your business stand out from others.
Get a Mentor
The business world is not easy, but turning your business into franchise can make things quite difficult especially if you have zero experience in this area and your only source of information is the Internet and talking with other people involved in business, but there’s nothing like obtaining a professional advice, because this way, you have a guarantee that you wouldn’t get lost in the franchise landscape.
Hiring a franchise mentor would be a great help in determining the first steps you need to take in expanding your business so that you would not lose precious time and he can help in building your networks at the same time.
Evaluation of Business Stability
Probably the determining step in your business, because it’s going to be tough to turn your business into franchise and then later on figuring out that your business is actually not read for it. Turning your business into franchise would mean more responsibility for you and increase in pressure about your branding, so there’s a need to always introduce something new about your brand to the market.
If your business is jumping too early into franchise, you might risk imploding on yourself and increasing the hastening of the collapse of the business within itself.
STEP 2: Fix all the Legal Issues
Get a Lawyer
Once you are finished evaluating yourself and your business and truly decided that this is the time to expand using the franchise method then you’d better get a business lawyer, someone who knows the ins and outs of the franchise business world so that he can guide you about all of the legal requirements you would need to obtain in order to make your franchises legal.
You might need to submit the complete application form of your business, update your tax documents, and provide financial statements of your company and then submit a letter covering the operation’s manual of the franchisee and the experience of your own team in the business.
Draw up a Contract
After you have submitted everything you needed to make your franchises legal, then you are ready to draw up a contract of franchise agreement to your franchisee so that you can transfer the legal rights of your brand, logo, products and services, that would help your franchisee gain control of a franchise store and legally operate in another place.
Step 3: Conditions Of Your Franchise
Terms as a Franchisor
It would be impossible to set up a business franchise without laying out the general rules and your terms as a business owner that a franchisee must meet without fail. After all, they would be using everything related to your business so it’s important specify the needed franchise fee, percentage of the royalty fee, the duration of the franchise and the interval for renewal, the size of the store, and the location of the operation.
Keeping Track of Your Franchisee
Yes, you don’t need to be involved in the day-to-day operations of the franchisee but it’s your responsibility to train the staff in the franchise store accordingly, in order to avoid bringing embarrassment and substandard services to the people, which can hurt the main branch of the business. Also, a visit to the franchise store would also help you in tracking the progress of each franchise store and try to help those who are lagging behind.