Many people find the idea of turning their successful startup business into a franchise appealing, simply for the fact that it is a fast and easy way to experience exponential growth. If you want to succeed with this business model, however, it is important to plan properly. The following tips can help:
- Clearly Define Your Business
Often times, entrepreneurs rely on trusting their gut when it comes to running their businesses. However, as a franchisor, you need to provide your franchisees with a solid plan if you want them to succeed.
You should provide your franchisees with clear, step-by-step instructions on how the business should operate. They need to fully understand the ins and outs of the business model down to the tiniest detail to improve their chances of success. The more specific you can be with your instructions, the more likely your franchisees are to do well.
- Work with the Right People
Choose your franchisees carefully. They play a key role in determining whether or not your attempt at franchising will succeed.
Remember, you will be working with these people for a long time. Not only will that, but both you and the franchisees invest a lot of time and money in getting things up and running. You need to be sure that these investments are worthwhile.
Avoid jumping in and recruiting the first people who show interest in starting a franchise, suggests Simon Smith of Tubz Vending Franchise. Instead, carefully consider whether or not they are qualified. Additionally, avoid the temptation to offer them a special deal just to get them on board. You need to be consistent in how you deal with your franchisees and don’t want to be accused of showing preferential treatment. You also need to have a clear understanding of where the franchisee’s initial funds are coming from and of how they plan to repay them. The ideal franchisee should have a strong work ethic, but should be content working within the limitations of your business model.
- Make Training a Priority
Both you and your franchisees can benefit from in-depth training.
A well-planned training program provides the franchisee with the information they need to successfully run the business. It can help prevent any major issues during the initial start up phase. It will also help them understand how best to train their employees so that everyone who works at the business is on the same page.
Having a solid training program in place also benefits you as the franchisor. When your franchisees are properly trained, you don’t have to worry about them making errors that could wind up costing you both time and money to correct. Remember, the better job your franchisees do of running their businesses, the more money you will make.
- Stay in Control
Ultimately, as the franchisor, you are in control of everything from the overall marketing plan of your business model to its day-to-day operations. Stay actively involved in promoting your business as a whole, and have clearly defined policies for your franchisees on how to deal with everything from hiring to accounting, to rules and regulations around different sorts of insurance required to software used in marketing.
- Make It Easy For Franchisees to Emulate Your Success
No doubt your original business is doing well. Otherwise, you wouldn’t have decided to turn it into a franchise. When setting up your new system, you should design it in such a way that it is easy for franchisees to emulate your success.
Figure out what helped your business succeed in the first place. Then, package that up in such a way that your franchisees can use the same strategies to ensure their own success. Ultimately, starting a franchise is about selling your overall business system that allowed you to become successful in the first place.