By Riya Sander
Starting a franchise business is no simple task. It requires a significant amount of time, effort, and research in order for it to be successful. Franchising a business is a big step to take for the untested entrepreneur, and isn’t without its pitfalls. The modern day market is a volatile and constantly in flux, so be certain of your decision so you don’t find yourself treading water. That being said, there are plenty of effective strategies toward developing a success franchise. If you’re interested in building a franchise from the ground up, here are 10 steps to remember.
Know Your Business
Any successful entrepreneur will tell you that one of the most important aspects of operating a business is to know it inside and out. This is especially true when it comes to building a franchise. Months and sometimes years of research and knowledge go into running a franchise and you are responsible for ensuring that your franchisees learn how to run a business like you would in order to create continuity within franchises. Don’t forget to create a thorough franchise business plan you can return to.
Develop a Clear Vision
It is hard for a business to be duplicated if there isn’t a clear and consistent vision in place. Developing a franchise is all about selling a specific brand to consumers. If the purpose of the company is unclear to potential customers, they are far less likely to give you their loyalty. A visionless company is a ship without a rudder, and will find it nearly impossible to grow.
Study Your Competition
Chances are that you aren’t creating a one of a kind business and that there is someone out there offering something similar to yours. Be smart and study up on what makes your competitors successful. Ensure that your ideas are going to equal or outdo the services or goods of a competing franchise. If you don’t know and understand your market, you won’t be prepared to react or fight changes or obstacles that they may later set in your path.
Hire a Franchise Expert
Nobody knows it all, and this applies to you. You may understand the ins and outs of your business plan and market, but a second opinion never hurts. This is oftentimes most important when it comes to comprehending the legal side of franchising. Hire a lawyer or professional franchising expert to teach you the specifics of the laws and regulations you are going to face.
Create a Growth Strategy
The purpose of building a franchise is to allow others (franchisees) to buy into your vision and help you establish your brand. It is hard to become a blossoming business with plans on how to grow and create more franchises. It is essential to create a plan on specific areas you are targeting to expand into as well as provide opportunities for your franchise to take advantage of changes in the market. And don’t forget that word of mouth is still extremely important in creating growth.
Find a Niche
Few franchises are prosperous because they offer everything to everyone. Specialization is the key to growing a business in the modern world. It allows you to continue to learn better, more affordable ways to offer a higher quality good or service to consumers.
Borrow Success, Innovate Failures
Especially when analyzing the competition, it is important to identify what works and change what doesn’t. The key to entering a market is offering everything and more than a competing franchise can, as well as improving on the aspects that consumers wish were better within your competition.
Be Selective About Franchisees
Adopting a franchisee who is all flash and no substance can be a business killer. You are trying to establish a brand of continuity and excellence within all your franchises. Bad ratings at one site will definitely impact another store and so you must be extremely careful when selecting your franchisees. Make your franchise agreement clear to them. Don’t just let the first person to come along and buy into your vision be responsible for growing your franchise if you aren’t extremely confident in that person’s abilities.
Set Franchise Restrictions Within Reason
While you are trying to create a united, continuous brand that people can appreciate and recognize from location to location, it is still important to give franchisees some liberties. Despite embracing an already established business idea, they are still entrepreneurs. Remember that they bought into your vision and probably have some original suggestions on how to innovate and create new franchise opportunities.
Support Your Franchises
One of the advantages of franchise business is that you are not alone and neither are your franchisees. Make a concerted effort in supporting your franchises so that they can experience maximum growth. Appreciated, well supported franchises will lead to faster growth and productivity. It will also provide you with different people who you can use as a springboard for innovative ideas and changes.
Developing a franchise business is an intimidating process, but it doesn’t need to be overwhelming. Careful preparation and strategizing will save you plenty of stress and mistakes over the long run and lead to a successful franchise business.
Riya Sander is an Australia-based writer. With spending her years working in management, she is very delighted to work with aspiring small business owners. Check out her Twitter.