Franchising your business can make this a reality, but there are lots of things you need to get right, here are 6 of them:
1. Sustainable business – the heart of every successful franchise system is a great business that works. It works by consistently delivering quality products that customers want at a price they are willing to pay, and is attractive to potential franchisees. It works by doing this profitably while being flexible to meet changing market demands. You need to establish this base before going any further.
2. Systematic success – your business may be running sweetly, but can it do it without you? Could your business be cloned several times without you being there? Great systems will make this possible by having proven procedures for every aspect of running the franchise operation.
3. Continual improvement – all of your systems must be fine-tuned before bringing in franchisees. One way is to open and run several of your own new outlets relying only on your documented systems and procedures, because that’s what you’ll ask your franchisees to do. Resist the temptation to micro-manage the new outlets, while you monitor and enhance your systems in response to the inevitable challenges.
4. Franchise agreement – even the best of friends have disagreements, so it’s vital that you set the rules upfront with a solid agreement on fees, costs, responsibilities and rights. It’s a highly regulated legal minefield, so you need good legal advice to protect you, your franchisees and your customers.
5. Great franchisees – your franchisees are entrepreneurs escaping the shackles of employment to reap the rewards of running their own business. They will challenge your carefully crafted systems by doing things their way . . . if they can get away with it. Monitor compliance with your systems, listen to their suggestions. Update your system with good ideas from franchisees to encourage them to take ownership in its success, and reduce the need to police compliance with the rules.
6. Exit plan – do you want to build a self-managed cash cow, a business empire to sell at a big profit or do you really want to see you name up in lights in London, Paris & New York? Your vision needs a strategic plan to guide the business along the right path, whether the goal is ongoing growth, a 5-year plan to sell the business or handover to your kids on early retirement.
These are just a few of the key issues needing careful attention while building your franchise business. But perhaps the biggest hurdle will be your own transformation from proud ‘widget’ maker into managing a franchising group which just happens to make great widgets.
The SolutionWise team take pride in providing practical solutions for all of the issues, challenges and opportunities facing your business. Call us for an obligation-free chat about how we can help enhance and prepare your business to take on the World.