Many businesses increase their profits and customer bases by franchising. Others consider both franchise vs independent business owner options. There are plenty of business owners who franchise their businesses themselves and, in turn, increase their profits substantially. As a business owner looking to follow in these successful franchisors’ footsteps, you need to determine whether your business will thrive as a franchise. In order to do so, you need to analyze the different factors at play. In this post, you will gain the knowledge you need to answer your question of “Can I franchise my business myself?”.
Can You Duplicate The Business?
The ability to duplicate your business across different locations is essential to franchising. There are many businesses that simply do not transition well into a franchise. An example of this would be a business that heavily relies on its location, like a restaurant that is dependent on regional ingredients. The problems that arise when these types of businesses change location are not worth dealing with when franchising.
Can You Sell The Franchise?
The ability to sell your franchise to perspective franchisees is imperative to its success. If you start a dollar store franchise, but cannot find any prospective franchisees, you will not succeed. Many businesses owners do not realize that one of the largest challenges with franchising is that it is a new business itself. You need to conduct market research just as you would if you were starting a new company. Prepare yourself to be able to expertly guide your perspective franchisee owners to understand your business. If your business is not presented to be valuable enough to warrant owning a franchise, you will fail before your first franchise is opened.
Can You Return The Investment?
The ability to return the investment your franchisees spend to open their doors is necessary to succeed. If your business is not profitable enough to have your franchises obtain a quality return on investment, do not franchise. Franchising is not a process to conduct when your business is having problems that need to be fixed. Your business needs to already be successful for your franchises to perceive the necessary return on investment needed for growth.
Is It The Right Time?
Finding the perfect opportunity to franchise a business can be challenging. A common mistake many business owners make is franchising their business too soon. The flaws in your business plan need to be already worked out before you consider starting to franchise. Many times people will express their inquiry if your business is going to franchise in the future, which is an excellent sign to consider. If you have owned a property management business for a decade and have received inquiries regarding franchise opportunities in the past, consider taking advantage of them. Experts suggest that three years is a healthy time to discover if it is the time to begin franchising is correct for your business.
Do You Have The Budget?
As mentioned above, franchising is akin to starting a brand-new business, and every business needs an appropriate budget. Plan out for your franchising future with what your expectations are. Research the necessary costs that come with launching new franchises. These costs include infrastructure, branding, marketing, legal fees, and more. A business franchise is not a goal to meet, but a brand-new journey to start. In order to ensure that the journey is successful, budgeting the appropriate costs will answer if you should franchise your business now.
These questions are all vital when determining if franchising is right for you. The potential might be there, but the nature of your business can conflict with the nature of franchising. Location, profitability, timing, and budget are all incredibly important when analyzing your options. While franchising may appear like the answer to your business’s troubles, it may cause many more if the proper questions are not asked before major decisions are made.