Seeing growth of your business must be more than just exciting because it feels like you have accomplished something with what you have been working so hard for. Franchising is one of the forms of how business grow. Growing your business by franchising regionally or nationally can be a good decision but make sure to do the evaluation beforehand.
It is important not to be in a rush when you decide to franchise. There are many factors to consider because franchising is like running an entire different business than the business being franchised. Hence, it is not so simple to make a franchise of your business and make it successful. Here are important questions you should ask yourself before deciding to make a franchise:
Does your business have wider market to grow?
Market research is the foundation of business model. It is something your must rely on when running business and franchising. Find out if there is any opportunity for your business to grow outside its existing location. Also, make sure that there is demand that exist in the market. This way, you can exactly target the right location to fill a need from many people expecting your product or service.
Can your business be easily replicated?
It is important that you make thorough evaluation of how your business is replicated if you make franchise. You need to evaluate the ability to apply your branding, marketing, sales, as well as operational system successfully across multiple locations. When you find franchisees who meet the criteria of your evaluation, the chance to make successful franchise becomes higher.
How comfortably are you with the new leadership system?
Opening a franchise means you will have to navigate your leadership with different role and responsibility. You need to shift your mindset because your responsibility as an owner of a franchise system is different than as the owner of a business you have built. You have to help your franchisees because they are putting their faith in your vision. Your support will be needed by your franchisees. Hence, you will have to help them navigate to the right direction with the business because their success is your success too.
Is the story of your business intriguing?
Story can be one of the keys for successful business. And growing your business through franchising means you will need intriguing stories to attract people. You don’t have to make up such tragic stories. Just make sure you have something to explain why your business was founded, the value of your business, and what commitment your business provide to customers. Those are important selling elements that can build customers interest and loyalty.
A franchise can grow successfully if its franchisees don’t lack the fundamental belief in the brand’s value. Franchising is not an easy decision to make for every business owner. Taking the next step with your business without jeopardizing what you have already built is very challenging. Hence, always take a hard look before deciding to make a franchise.