Franchise Your Business: Research
When considering how to franchise your business, the process requires a significant amount of research and planning in order to make the right business decision. Franchising is an extremely unique market niche and requires a detailed understanding of it in order to not only decide whether to get into the business, but also how to develop a successful expansion strategy. Many business owners entering this industry are now aware that their competitors extend beyond the consumer marketplace competition they face leading in to the business. In the franchise industry, businesses that may sell other goods or services, but have a similar initial investment will become competition to your business opportunity.
If you were to franchise your business, one of the first steps would be to conduct a series of research studies to truly understand what your particular industry segment looks like in the franchise marketplace. If you are in the sandwich business, the fast casual sandwich franchises should be reviewed and understood as to how they implemented and executed their franchise expansion strategy. There should also be a legitimate study done on the financial dynamics of your franchise competitors. What are the other franchise model’s ROI, typically unit cash flow and franchise fee structure? Where have they marketed and how have they closed new franchise acquisitions? There are always a host of business strategies and ideas to gain from other’s mistakes. It wont take long to see where other organizations missed steps or could have improved efficiencies. Utilize that information for your own gain and build a stronger plan.
In order to franchise your business, the research should be all inclusive. Every element of the franchise competition should be reviewed to best position your franchise concept. Territory is always a key variable, how big or small of an area will you provide to a franchisee when they invest in your franchise concept? What is the initial investment? Particularly in today’s market, the initial investment can be one of the largest single influencers in a new franchise’s ability to get off the ground and launch the franchise model. Good research is always at the heart of a good plan.
Franchising can be an exciting and dynamic way to grow a business, but there are multiple factors that must be addressed in order to have a business that could successfully be duplicated. Start with the research and help answer those questions prior to launching a new expansion program.