Are You Ready to Take Your Business to the Next Level?
Evolving an independent business into a franchise system is one of the most complex and dramatic transformations the business world will ever witness. Even at a basic level, the franchise development process requires a significant amount of research, testing, legalizing, packaging, and more testing before you can put it to market. All of this at a cost that can range from $30,000 to over $100,000, depending on your anticipated level of expansion.
For now, don’t let the cost factor put the brakes on your business’ potential. First, you have to take the initial steps to determine if your business model has what it takes to make it as a franchise system. Then, it will be important to determine if “you” have what it takes to make the system succeed – and become a franchisor.
You’re Ready to Expand – Now What?
Franchise development is a slow and tedious process which will not differ much from one business concept to the next. The first step is to ask yourself:
- What is the motivation behind expansion
- If there are there any expansion strategies other than franchising?
- If you are emotionally, physically, and financially ready to tackle an entirely new business model, that of being “in business to sell businesses.”
In other words, there is research to be done before the research and development actually begins. You have to put yourself in another frame of mind because once you pass the threshold from independent business owner to franchisor, you will be entering the world of big business.
Do You Have What It Takes to Be a Franchisor?
Your new responsibilities will no longer involve just one business’ needs and requirements but potentially hundreds – all across the country and perhaps internationally. You will need to build a team to manage this growth and a reputation in the marketplace to sustain this growth. As a franchisor you have to be at the leading edge of franchise innovation and leadership and have the strength to deal with franchisee failure from time to time without it compromising your own goals and values. Plus, to make this all happen, you must have deep pockets or at least know someone who is willing to back you up financially without knowing if the concept will take off at all.
So, are you ready to take the next step?
What follows is a general criteria list that where you can being assembling some of the larger pieces required for franchise development. As you delve deeper into development the process naturally becomes more complex and it will be up to you to educate yourself on the many facets of the franchising industry.Criteria #1
Does the Market Currently Have a Concept Like Yours?
There are fewer and fewer original franchise concepts entering the marketplace. The reason could be due to the consumer demand for quantity instead of quality. The masses do not speak the language of “quality” so if you plan to cater to the exclusive few, your concept better be a money-maker. In franchising, to be successful does not mean you have to be original – just better at it. If you’re not sure that your concept exists, start by reviewing some of the franchise industries in business right now.
