5 Steps to Build a Franchise for a Small Business
Contrary to popular belief, franchising is not just something big businesses can do. Every large business starts small and creates lots of opportunities to grow quickly using the franchise method correctly. So, what are the most important of these opportunities? What are the issues that small businesses should pay attention to during franchising? Below, you will find answers to these questions and more.
1. Start by Evaluating the Business Model You Offer and the Customer Group You Address
First of all, you need to determine how suitable your business model is for franchising. It doesn’t matter what you do: you can work in the food sector, the service sector, or even the online gambling sector. In fact, the number of betting booths you see on the street shows that franchising can be implemented even in the gambling industry, especially if you live in the UK. For example, you can draw attention with a special no deposit bonus in the UK, create a loyal customer base and use this advantage to start a franchise.
In any case, however, you need to determine how suitable your business is for franchising and whether it can create a trend. For example, if you are in the food industry, can the food you sell be used for the “healthy food” trend? Or can it be adapted to the cuisine of a particular country? In short, do you do business that can be presented in multiple branches while maintaining the same theme and originality. If the answer to these questions is yes, you are working in a business line suitable for franchising.
2. Get Help from Professionals
You’ve heard the McDonalds story before. We’re sure you’ve heard many other franchise stories based on one person’s success. The problem is that all of these stories took place in the ’60s, and things are quite different in today’s world. No matter how dedicated and ambitious you are, you can’t run a franchise operation without professional help. This help should also be taken at the beginning of the operation. Ask a lawyer or franchise consultant how suitable your business is to branch. If the answer is positive, let them determine the steps, duration and cost of such an operation for you. Purchase not only advice, but also management: hire a lawyer or a consultant until the end of the whole operation. Instead of relying on your luck, let professionals do the job.
3. Prepare Yourself and Your Business for Changing
Perhaps you will be surprised, but the most difficult thing to change will be yourself. So far, you have taken all decisions by yourself and have not felt the need to consult with anyone. Moreover, even on the smallest issues, you made the decision because you liked to keep control. Prepare for the change: Franchising does not mean that you will only open a few branches. This is a move that will change your entire business and its management from start to finish. You can no longer make any decisions by yourself, and you cannot waste time dealing with small things. Begin to get used to the idea that you will not have full and complete control over things.
4. Start Raising Capital
Franchising operations are costly – you can be sure that it will be costlier than you originally thought. It will be very difficult for you to carry out the daily operations of your current business and collect the capital required for the operation. Therefore, hire someone to manage your business for you until the operation is over. You should focus on the capital-raising business. Identify potential investors and make sure you can present your idea in the best way. Don’t forget to use figures, templates and graphics- visual presentations are the most effective. You don’t have to completely transfer control of your business to others, just collect enough investment for your dream project. Starting the whole operation with a full budget will make things go much faster.
5. Think About Your Partners Too
You have to impress not only potential investors, but also your business partners (franchisees). What do you offer to your partners who will be part of your franchising network? Why should others want to be a franchisee of yours? Remember that promising high dividends is not enough. MLM operations also offer very high percentages, but none is realistic. Identify and highlight features that will keep your potential business partners working with you for years to come. Do you help with training? Do you supply the necessary equipment? To what extent do you help your partners when they have a problem? The franchising industry is highly competitive, and if you want people to choose you, you should be able to offer a range of features that create a difference. Identify what these features are and build your entire operation on them: instead of chasing after your potential partners, let them come to you.
