Expand Your Brand
Many successful entrepreneurs who have ventured into the world of franchising often find themselves contemplating the next logical step: brand expansion. Expanding a franchise generally includes increasing the areas in which business operates; this involves payment to franchisor or to the owner of a current franchise you wish to get affiliated with.
Franchising business is a bilateral business whereas the favourable outcome of the franchisee will directly affect the achievement of the franchisor and the failure of the franchisor will show reversal on the franchisee's business. Thus, the relationship is very co-dependent.
In case you are preferring to expand your business by taking over an existing franchise you will need to look at the new business in detail and go through the process with due diligence. Begin with by inspecting the financial condition of the business, evaluate its growth potential and decide if you can bring about improvements in its effectiveness. You aim to safeguard your ongoing business from any liabilities.
The initial inputs which begin with getting the locations ready, acquiring capital, consulting a lawyer, hiring staff etc. are part of the procedure.
Some of the criteria
- Permit natural growth-you should not go in for large amounts of investment capital to build more locations. To begin with, they will appear very lucrative way for expansion. This is artificial growth and may be detrimental in the long run. First, structure your brand and reputation and let the business evolve naturally even if it takes a lot of time.
- Fool-proof your business model-test the business model through your initial location and try to make the model flawless. Ask some questions like is my business scalable and economically feasible? The growth or stagnation of individual location can help you get the answer to your questions. This evaluation will lead you to future success.
- Persist to mature-this will be based on your consumer contributions and your marketing, technology, and operating model. Try to construct the business in such a way that you are a formidable competitor in the given industry. So, start with a robust business model.
- Select shrewdly- selecting franchisees can affect hugely the success or failure of a business. So, select sensibly is the baseline. Ensure that franchisee candidate have a drive for business and the necessary financial business expertise to do the job. In your assessment, you are sure that they will maintain extremely high standards. Look for brave innovative franchisees who are capable of multi-task.
- Communicate-after the beginning familiarization period is over maintain contact at regular intervals. Owners who are also visionaries must know about the ongoing activities of their franchisees and are updated on their progress. This support will lead to the growth of the brand and lead toward success.
Franchises do not see franchise expansion as part of the business but view it as a drive for their business. They focus on growth in a manner they use multiple-unit and multiple-brand franchising to drive that growth.
