Starting a business from scratch requires a great amount of preparation and dedication. With a franchise, less effort is needed. But there is an option in between: franchising an existing business. In this article, we look into how to start a franchise. There is no need to think ahead with questions like “How will I grow my franchise?” or “How much capital do I need to survive my second year?” Let us focus first on building it from the ground up.
1. Plan and organize first
It is important that you know how your business operates. Your franchisees will replicate your business model, so they must be provided with everything they need to successfully grow your franchise. Author an operations manual that franchisees will follow. Create a strategic plan as a guide for growth. Also, do not forget to hire a mentor and a lawyer to help you with all the requirements of the franchising process.
2. Choose intelligently
When you choose a location and potential franchisees, be wise. You have to choose areas where more people can see your franchise units, where demand can grow organically for brand recognition, and where competitors are weak or do not exist for competitive advantage. Be strict, too, in choosing franchisees. They must have a good background, a natural business sense, and willingness to help you grow the franchise.
3. Build efficiently
With all your plans, locations, and franchisees in their proper places, begin to build your brand with efficiency of use. Your brand is your franchise’s greatest asset. Market it accordingly. Make sure that it is utilized with the right language, for the right targets, and by the right people. Protect it from misuse. At best, set guidelines for your franchisees to follow. They are bonded to the same purpose, so they must know how to use the brand properly.
Franchising your business is entirely a new business in a sense. But your simple idea of expanding your business as a franchise can become a great success if you prepare well enough to understand how your business works and how your brand will react to the franchise model.