Grow your business by franchising
The National Federation of Independent Businesses (NFIB) Small Business Optimism Index jumped in December, 2014 to 110.4 the highest reading since October, 2006. An Associated Press-Times Square Alliance poll said that nearly half of Americans predict that 2015 will be a better year for them than 2014. Since then the cost of gas has continued to plummet putting more disposable money in every consumers wallet and therefore adding to the positive mood rippling through the economy.
If you own a business and are ready to grow, the easiest fast growth solution is to start the process to franchise the business model you have put together.
Franchising a business is definitely not for everyone. If you have an interest, here are some things to consider.
- Franchising is not just for a business in the fast food and auto repair industries. The types of businesses that franchise include accounting, advertising, agriculture, child care, cleaning, education toys, travel, upholstery to water and many, many concepts in between. If your business is in an industry that is yet to be franchised, you have that market open entirely to you.
- Most franchises sell for $25,000 to $35,000 making them an affordable way for new entrepreneurs to get into business.
- Franchising does take time so you can establish it in all 50 states. However, if you tried to franchise in all states at the same time the growth would be impossible to manage. Start either in the most franchise friendly states or the states closest to home and expand as you build a strong system of franchisees.
- With the right planning and preparation you could be ready to franchise your concept in as little to 60 to 90 days, in most states.
- You don’t need to be an expert on franchising. There are businesses that guide and make you “franchise ready.” Part of their process is to analyze the strengths and weaknesses of your business model and your management team, develop solutions and then go to market and be successful. Part of their role is therefore to make you “franchise strong” and build you on your knowledge and skills.
- Finance is not part of the franchisors responsibility. Franchisees can borrow from their personal network or if the concept meets SBA or Small Business Administration criteria, the franchisee can get a 7A loan.
- Depending on the strength of your business, you can fund selling franchises from your existing marketing budget. There are experts to help define that for you.
- Do you like learning? There are new skills and plenty to learn; just like you have done before.
- There is no need to disclose the current financial statements of your current business in order to enter the franchise industry.
- More information is available via webinar on what’s involved. Simply give Andrew a call on 916 570-2674.
How do I know if my business is ready for franchising?
There is no one size fits all to be successful at franchising. A good starting point is as follows:
- Your business has been operating for at least one year; the longer the better.
- Your business is growing and handling the growth. (If your business is not handling the growth then trying to franchise will make your business weaker.)
- Your business is doing well financially with a strong Profit and Loss and Balance Sheet. (If your business is financially successful it demonstrates that if the model is copied correctly its chances of success are high.)
- Your business is different. Customers like trying and buying something new and different. If your business is doing well, can you identify its differences?
- Do you have the financial resources to invest in starting and growing a franchise concept?
- Your business needs to be successful and strong – not perfect. If you wait till your business is perfect you will lose to your competitors.
- Are you willing to listen and hear what’s good, bad and ugly about your existing business and the changes it needs to be a standout and attract new franchisees?
Just as owning and operating a franchise has never been for everyone, neither is turning a business into a multi-dimensional franchise concept. It starts working with your successful business model and partnering with experts who can help guide you to the next level.
If you would like more information about turning your business into a successful franchise and buying an individual franchise, please visit my webpage Buy a franchise or buy a copy of my book: Successfully buy your franchise.
For more immediate help with turning your business into a franchise, send an email to Andrew Rogerson or give me a call on 916 570-2674.