Do you think your business is ready for franchising?
Franchising is basically replicating a successful business on which entrepreneurs can take advantage of. This allows the business to grow faster with the ideal expansion as franchisees will be the one responsible for the entire investment in opening locations. Despite of this, there are lots of business owners that don’t easily recognize the signs that their business is ready for franchising. Owners should know that they don’t need to be as successful as Jollibee to be open to franchising.
If you doubt about your business capacity, here are some signs that you are prepared to be a franchisor.
1. People are interested to franchise your business.
Having people around you asking if your business is open for franchising is a clear sign that they believe in your business concept. They probably think that there are great opportunity expanding it and is interested to invest in your business.
2. Business owners are trying to replicate your business concepts.
There are various entrepreneur that copy your business concepts to use the business’ popularity and success. This is an indication that your basic business concept can be replicated and can possibly contribute to success of other businesses. On the other hand, this may negatively affect your business. Simply use this as an opportunity to develop your business and have the edge against your imitators.
3. You have at least one operating store.
Even though it is essential to have at least one operating prototype, it is more ideal to have three or more operating stores before going to franchising. It is because having multiple existing branches will easily enable you to streamline business operations and show your potential franchisees the ins and outs of your business.
4. Your business has experienced a year of profitable growth.
Experiencing a year of profitable growth is very essential to franchising. This could help you determine how your business will do in different seasons as well as different movements of the market. This also can give you enough time to polish your business operations and strategies.
5. Business concept and operation can be easily taught.
Keep in mind that most potential franchisees are first-time entrepreneurs so it is important that your business concept and operations are simple enough to teach. You need to make sure it is simplified, organize and also streamline your business operations in order to make it easier for the potential franchisees to reproduce your business.
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