So you have a successful business, and believe it’s a great fit for the franchise model. You may be right—but before you decide to take the plunge into franchisor-hood, there is a very important point that you need to take to heart.
Forget flexibility: framework is the name of the game.
As a business-owner, you have no doubt become adept at “going with the flow,” adjusting to changes initiated by lawmakers, suppliers, and customers. Heck, you may even have found success flying by the seat of your pants.
And that’s great, if it works for your business. The thing is, it’s not likely to work very well for a franchise. Here’s why.
- Your franchisees need to have a model to follow—and more than follow: they need to be able to basically replicate what you have done to achieve success. The whole point of a franchise is that customers anywhere in the country (or anywhere in the world!) can expect the same quality product or experience. If you can’t provide a model that your franchisees can replicate, how can they possibly ensure that the franchise’s customers will always enjoy the same quality?
- You need to be able to train your franchisees how to run the business. That means you need to have the principles of the business set in stone, ready to hand over to the franchisees. Solid training will help them to avoid errors that they will require time and money to correct.
- Your proven business concept and marketing plan are what will attract franchisees to your business in the first place. If you don’t have a firm framework, your franchise is not likely to get off the ground—or if it does, it’s not likely to attract the kind of franchisees that will keep it thriving.
The first step to developing a successful franchise model is to document the systems that have made your original business successful. That documentation will allow you to sell the concept to future franchisees—and allow them to replicate it, growing your business and your franchise reputation.
For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of businesses that require specialized insurance packages and knowledge. With offices in California and Indiana, Beall Financial and Insurance Services serves clients nationwide.