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Why You Would Want to Franchise Your Business
| Guest post by: Ken Wisnefski |
Article Overview: Entrepreneurs have a penchant for business transactions. Successful businesses can be made into empires through franchising. The following offers some insights on preparing your business for franchising.
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Free Download - Long and Short-term Marketing By Ken Wisnefski |
Why You Would Want to Franchise Your Business
Introduction
You have a knack for business. Your customers covet your goods and services. Business is going well and has been for a long time. You are thinking that it would be lucrative to branch out your business. What should you do next?
The following article discusses making your own business into a franchise.
Why it is not common
Many businesses eventually franchise, and yet, others do not. Why do the latter hold out? There are several reasons some owners do not decide to franchise: they believe the process to be complex, they do not want to lose control of their business, they are under the impression that it will be very expensive, they do not know their business model can be franchised, etc.
The above are all viable concerns, but they are not reasons to stop one from looking into the process. The truth is that franchising can be very advantageous for a business and the owner’s pocket. It is not something that should be done hastily – it will take time and effort, but when done efficiently, it is well worth it.
How to mold your business into a franchise
Several steps can be taken to ensure a smooth transition from a small business into a franchise empire.
- Create a great concept. All franchises are built upon a great concept. You do not have to reinvent the wheel; you just have to make it work.
- Things need to run smoothly. All of your systems need to be in order. Operational, accounting, marketing systems, etc. need to be tightly running.
- Your model needs to be easily duplicated. You will have to teach others to run your business, so the more easily it can be taught and interpreted; the less time will be needed to address these issues.
- The business needs to make money. If the business will not be successful with others running it, it cannot be a successful franchise. Usually, if a business can make about a 20% return on the investment, it is a franchise candidate.
- Be prepared to think big and change your role. There is a difference from running one store and being the franchisor of multiple stores. Managerial skills will be necessary to cultivate and implement.
- The business needs to be applicable in many locations. For instance, a surf shop will not be as popular in Kansas as it would be on the California coast. The products and services need to be widely needed.
- It will be better if your industry does not offer big business competitors. You want your competition to be mostly small businesses.
- You will need to be open to suggestions. Franchising is a great opportunity, but takes careful planning.
Franchising with all its Success
About 60% of all franchise opportunities have less than 50 units.
Why Use a Franchise Consultant?
Did you know: NIIT Franchise was present in Malaysia in 1997?
Master Franchises Explained
Article Tags: business model, franchise candidate, small business
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About the Author: Ken Wisnefski RSS for Ken's articles - Visit Ken's website Click here to visit Ken's website   Where to Get Funding for Your Small Business Market on the Internet How to Sell Without Being a Salesperson Use Varied Marketing Techniques to Promote Sales Web Design Tips to Facilitate the Sales Process |
Related Forum Posts
Re: Enticing Franchises - Top 9 List
- All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers...
- [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there.
To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1]
Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published.
I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee?
- Dear Colleague
There is no easy answer to this question. Things to consider:
[list=]
The sizeof the Franchise
Clent base
Expected Turnover
Intellectual Property costs (recoup)
Number of Franchises
Number of employees
Original Set up costs
Franchise admin costs
An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc
The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000.
Hope that this gives you some idea
Take care
Ian[/list]
Fed rate cuts . . .
- So just what do the newest Fed rate cuts mean to Franchise and Business Opportunity investing?
Is it immediately felt? What timeframe do you think, or rather, where are we in terms of new vs. existing business investment?
A similar question can be composed for the economic stimulus checks - will they a have any effect if consumers spend a little $$
Re: Hello EvanCarmichaelers, and Thanks!
- "Carmichaelers" ..nice.. Over at the Young Entrepreneurs I'm going to start calling my readers "DSilvelers" - I like the sound of that!
Welcome on board theFranchiseMarket. Do you run a Franchise Business or are involved in Franchising in anyway?
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