Many business owners at some point wonder if it's possible to franchise. So long as your business is successful, easy to duplicate and you could teach others how, the answer is yes. It does however take quite a lot of time, effort and money to get a franchise off the ground but it's still a more economical way to expand than many other business models.
One of the most important things is to have the financial statements to back up and prove the success potential of your particular business. That's what your selling... your way of making money so it has to work. Without that you'll find it very difficult to get any franchisees and will probably fail.
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.
How easy it is to transpose a business is at the heart of franchising heaven. It cannot be location specific. You are asking people to copy what you do in their own home town wherever that may be.
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.
Selling your finished franchise going to be exciting and hard work at the same time. If you have failed to properly research the viability of your franchise then you may not sell any at all - quite a waste of time, effort and money! The single biggest factor for selling your franchise will be the potential it provides someone else to earn money. Remember they are risking an non refundable initial deposit so they are taking a risk.
In part two of this article I'll complete the franchising picture for you as signing up new franchisees only puts you at the starting gates! There's still plenty of pitfalls which can result in your franchise failing.
One of the most important things is to have the financial statements to back up and prove the success potential of your particular business. That's what your selling... your way of making money so it has to work. Without that you'll find it very difficult to get any franchisees and will probably fail.
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.
How easy it is to transpose a business is at the heart of franchising heaven. It cannot be location specific. You are asking people to copy what you do in their own home town wherever that may be.
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.
Selling your finished franchise going to be exciting and hard work at the same time. If you have failed to properly research the viability of your franchise then you may not sell any at all - quite a waste of time, effort and money! The single biggest factor for selling your franchise will be the potential it provides someone else to earn money. Remember they are risking an non refundable initial deposit so they are taking a risk.
In part two of this article I'll complete the franchising picture for you as signing up new franchisees only puts you at the starting gates! There's still plenty of pitfalls which can result in your franchise failing.
About the Author:
Payo Hernandez has set up and runs his own successful franchise. He also writes great product reviews and you can check out his guide to Keys fitness equipment. You'll also discover great information and deals on Proform fitness equipment.
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