Increase Your Chances for Profitability When Starting a Franchise
An article by Forbes presented information for increasing chances for profitability when starting a franchise. The article provided the following points to consider when franchising a business:
- Get Organized – Think of exactly how your systems in your business work. In order for franchisees to be successful your systems will need to have the ability to be easily replicated.
- Hire an Attorney – Having someone with knowledge of both the legal and business aspect of franchising a business is crucial for the success of a franchisor.
- Be Picky – When it comes to accepting franchisees it is important to not to just accept anyone. It is important to establish specific criteria for what you believe is the perfect franchisee and only accept franchisees that fit that criteria. This can potentially help avoid hiring a bad fit.
- Build and Protect Your Brand – Once your brand has been established it is important to make sure you protect it at all costs. A franchise lawyer can help with the establishment and protection of your brand which should be done prior selling franchise locations.
- Choose the Right Location – Consider keeping your first few franchise locations in the same vicinity as the original business location. However‚ it is important to space out the locations enough so the locations are not interfering with each others business and profits. It is also important to strategically place the franchise locations in areas that have a high amount of visibility.
- Find a Mentor – Surround yourself with a person (or multiple people) who have been successful in franchising their business. They may able to give advice that you may otherwise have been unable to find.
- Know How You Want to Grow – While growth is a good thing‚ it is important that the growth be controlled. Growing too quickly or growing in areas that are spread over too wide of an area can be hurtful to your franchise. Decide if you want to keep the franchise at a state level‚ nationwide‚ or international level and adjust it only when you feel it is time.
- Support Your Franchisees – Get to know your franchisees and continue to build a relationship with them. Establishing a good line of communication with your franchisees will allow there to be less room for situations to arise that could potentially harm your franchise.
Franchising a business is a huge step even for an established entrepreneur. Establishing your business systems and brand prior to franchising a business is a necessary step that needs to occur in order to ensure success in the future.
For more information about how to franchise read The Ultimate Guide to Franchising Your Business.
By Charles Internicola November 21, 2012
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