Franchising can be a fast, cost-effective way to scale your business. But it isn’t right for everyone, and not all franchises succeed. With the correct approach, you can allow your business to grow in the hands of others and reach new heights.
Firstly, consider if your business is ready
Make some key health checks. Is your business profitable? To persuade others to invest in it, you must demonstrate a track record of success. Do you have a clear brand identity? If your company is still named after you, it isn’t ready to franchise. You need a strong brand image that franchise partners can use and make their own, not just yours.
Is your product or service needed in other areas or markets? What competitors are out there, and do they vary by location? Answering these questions can help you pinpoint the how, when, where and why franchising can scale your business and identify the right franchise partners to make it happen.
Consider other ways to grow your business
Franchising offers enormous benefits, but there are drawbacks, too. You must be ready to allow others to take some control of your company. Not everyone is prepared to let go, especially if you have spent years building your business. Could you take on more staff instead? Buy more premises? Access finance to allow you to invest? Think whether outsourcing or using freelancers could help you grow in a different way. Considering these alternatives will help crystallise whether franchising is the best scale strategy.
Speak to franchising experts, current franchisors and franchisees in other businesses or attend franchising expos to understand the franchising world. Many people are happy to share their stories of what worked for them and what they learnt along their franchising journey. Listen to your gut as you go through those conversations. Their experience will either ring alarm bells for you about the potential pitfalls or leave you excited about the future opportunities for your brand.
Be clear on your vision
Think about what you want to achieve for both yourself and your business. What is your ambition? How will you get there? Discard other people’s views or expectations. Focus on yourself and the future you want. What does it look like? Some people might dream of building their brand nationwide and seeing their stores on every high street. For others, it might be about better work-life balance or the ability to retire earlier.
Articulate your vision in whatever way works for you – a vision board or a simple description of the business you want to create. Getting the vision out of your head and into words and pictures gives you something you can define, reflect on, and share with others. Being able to communicate what you want to achieve through franchising will help when it comes to recruitment. Potential franchisees need to trust you enough to buy into your business and believe in the vision you are striving to achieve.
Act like a big business
Establish scalable ways of working by designing clear processes, supporting materials and policies. The way you did things when you ran your business alone or as a small team won’t work if you are managing a team of franchisees across multiple sites or areas.
Rewrite your processes for the scaled-up company you want, not your current business. Creating a franchise manual is an essential step. This should allow new franchisees to learn everything they need to know to run their business, from hiring employees to marketing and sales. Remember, you must sell your franchise to others and encourage them to part with their investment. The more professional your franchise looks through training manuals, software packages, branded communications, processes, etc, the more likely you are to build that all-important trust in potential franchisees. It also helps to create a consistent franchise brand, which is key to long-term success.
Know when to ask for help
Scaling your business through franchising can be exciting. But it is also a big step into the unknown. To succeed, you might need external help from a business coach or franchise consultant or to outsource admin tasks to free up the time you need to achieve your dream of successfully scaling your business. Don’t be afraid to seek that support. It could make a huge difference.
Particularly founders can find it hard to delegate and let go of control. But you can’t function effectively as a franchise if you work that way. Founders must be open to change and adopt a collaborative style that brings franchisees on board with the combined business journey.
Franchising is a fantastic industry, offering massive potential for ambitious business owners. Your business future lies in your hands, so don’t let anything hold you back. Get started on scaling your business and achieving your vision today.
