Success running one business does not guarantee success running an entire network. There are some questions to ask yourself before deciding if you and your business are ready to become a national brand name.
1Can your business model be replicated?
The biggest indicator of a franchise’s success is whether business operations can be duplicated easily. Look around you. Every KFC, Nando’s, Wimpy or Mugg & Bean you walk into offers a similar experience, no matter which one you’re visiting.
Stores falling under the same name are run the same and have the same general look and feel. That’s the secret behind a successful franchise.
If, for example, your personality is too connected to the overall brand, so much so that the brand cannot stand on its own, then your business model cannot be replicated.
This doesn’t mean your business cannot be successful in multiple locations – just that it cannot be franchised to be managed by emerging business owners. It might just be a timing matter, as your business is yet to implement systems that will make it more scalable.
2Are you franchisor material?
This has more to do with you as a person than your business model or its systems.
Ask yourself: Are you willing to give up your entrepreneurial independence? When you become a franchisor, you’ll have to let the franchisees run with your business idea and the only way that can run smoothly is if you develop strong relationships with them as your investors. Remember, their success is yours too.
Your franchisees have the freedom to run their individual branches of your company – you have to ensure you’re ready to allow that. This doesn’t mean giving them full control as you’ll still control branding, product development and general corporate policies.
3Is your business ready to succeed as a franchise?
Think back to how long it took to get your business off the ground – from product development, implementing marketing campaigns and building up customer relationships. Franchising means you you’ll have to produce these results much quicker.
The important question here is: Is your business is stable, mature and developed enough to franchise?
Ensure you’ve done your homework on the ins and outs of franchising your business before you get the ball rolling. This stage of the process could determine the success or failure of your expansion efforts.