If you are looking forward to expanding your reach to a national marketplace for your products or services, it would be a shrewd decision for you to franchise your business.
Franchising will involve letting other people replicate your business precisely, giving them permission to use your company name, trademarks and business model to enable them to establish their own venture in locations that offer a good chance of success.
So that you can go through the process successfully, it is important to find out the profitability of your existing company before you start. It is also important to ascertain whether your business model can be replicated smoothly and painlessly by your future recruits.
There are several ways in which you can profit from franchisees.
* Royalties – Ongoing fees for the use of trademarks. They can either a percentage of revenue or profit, or a regular flat rate.
* Start-up costs – Although start-up costs may seem a lot, most franchisors don’t make that much money from them. Recruitment, training, marketing, legal fees and technology all cost.
* Additional training, upgrading technology.
You will need to be extremely well prepared before franchising your business and find appropriate ways to:
* Marketing to prospective people
* Vie with competitors operating in similar niches/sectors.
* Network with your current recruits.
* Appraise performance on a regular basis.
Progressive detailed instructions on franchising your business:
* You will have to create a suitable business plan: It must be distinct and accurate and comprise information on finances, targets, purpose and concept of the company.
* Compile an in-depth processes and procedures guide: This will be a textual training guide for your recruits on how to run their venture. The guide should be in a printed form and also be available online.
* Assign finances for acquisition and tuition, support, legal costs and research.
* Set up an experimental outlet to test the potential expansion of your company. This will help you to establish whether franchising is an appropriate way forward for you. It will also show that you have comprehended and know how to go about franchising.
The ensuing tips are advice on franchising your company:
* The manual on the structure of your franchise should self-promoting. Instructions should be simple and effectual to make sure that you can rival competitors operating in a similar sector. The instructions should be well-defined so that the recruits can follow them easily and use them in their new venture.
* Create a plan for acquiring new recruits.
* Adopt the most suitable working template to use.
* Decide upon the start-up costs and royalty fees that you are going to charge.
* Generate marketing tactics which will include advertising strategies.
* Determine suitable regions for locating new outlets.
* Get legal advice when compiling your agreement. It should include your rights and also those of your recruits.
* Engage franchise consultants as they will assist you through the process.
They will help you to:
* Ascertain the capability of your business to licence out.
* Choosing prospective recruits.
* Discover the best information regarding principal matters like publicising, efficient communication, promotion and tuition.
* Reinforcing your brand so that customers can identify it easily.
An effective business model can significantly boost profitability if you adhere to this well-defined guide on how to franchise your business.