Looking for the ultimate growth plan for your business? Try franchising. Here’s our guide to duplicate like a boss, how to franchise a business in a few steps.
Do you feel like your business growth has stalled?
Perhaps you feel like you can’t grow any further. After all, there’s only so much you can do on your own as an entrepreneur, right?
Not necessarily. If you’re looking to grow your business beyond its humble beginnings, franchising it could bring you rapid returns. But how can you make it a success?
To help you, here’s everything you need to know about how to franchise a business.
Know Your Angle
What is it your business can offer?
Your business needs an “angle” that can help it grow into new markets. A unique selling point that sets your business apart from the rest.
Developing this isn’t only important for attracting new customers, but it’s also important to attract potential franchisees to your operation. After all, you want to show there’s enough reason for them to take a risk on you as much as you have to take a risk on them.
Not sure if your business can work as a franchise? Here are five principles of franchising businesses to help guide you.
Research Your Market
What works in your state or city might not work in another. Market research is essential for you to be successful when you franchise your business.
Check how successful your niche or industry is within the areas you want to grow into. Is there a demand for what you can offer, or is the market already saturated?
Franchising can work for businesses working in all kinds of industries and niches, so is yours one of them? Check out these 10 most popular industries for franchise growth.
Your finances need to be in order before you can consider whether to franchise your company.
For instance, are you comfortable with your profit margins? Are you making a profit consistently, and do you think this can be duplicated?
If you only operate out of one location, it might be worth seeing if you can duplicate your success elsewhere before you look at franchising.
Of course, another way you can make more money is to make your existing business operations more effective. Here are 4 ways you can become more efficient in your own business.
Learn to Be a Franchisor
As a business owner, you’re in control of everything. You’re involved in every element of your operation.
You’ll need to learn to become a franchisor. Your business locations need to run independently of you if you want your growth to be successful.
You need to be teaching others to be effective managers of your business, especially your first franchisees. You’ll also be primarily responsible for ‘selling’ your business and gaining these initial franchisees in the first place.
Perhaps you’re considering whether a chain business is better? This page should help you decide between operating a chain business or franchising instead.
Draw up Your Legal Documentation
You need to register with the Federal Trade Commission if you want to operate a franchise, so it’s important to have your accounts and your legal documents in order.
You may also need to register with state authorities, depending on where you’re based. A local attorney will be able to advise you of the process.
Once you’re confident you know how to franchise in your location, get your legal documents for franchisees ready. Decide on fees and profit percentages, and draw up a legal agreement that protects and benefits you when you deal with your franchisees.
Know How to Franchise a Business Effectively
Becoming a franchisor can be a satisfying next step for a business on the up and up, but don’t become seduced by the temptation of riches without being prepared.
Knowing how to franchise a business is only the first step in your challenge. Be prepared to find good quality franchisees who can be trusted to take your business brand further.
It’ll be hard work, but with the right preparation, franchising your business could be an effective way to supercharge your business growth.
Liked our guide? Then you’ll love what we’ve got for you next. Check out our other articles on the best business ideas to give you inspiration.