Until about a year or so ago, your local pizzeria business remained the anchor of your community – but lately sales have dropped as your once loyal customers flock to the latest pizza franchises to hit South African shores. At first it may have seemed like a fad, but very few customers have returned and you’re dreading the inevitable.
Instead of closing shop, you could convert your business into a franchise to compete. “But why would you want to trade in your independence to belong to a franchise? What do you get in return? And how can you decide if the leap from independent to franchisee is right for you?” asks CEO of FranChoice Inc. Jeff Elgin.
Here are four reasons conversion may be just what your business needs to boost sales and show marked growth:
1. Acquire brand influence
Being associated with a recognised brand could yield significant marketing advantages. Aligning your business with a name that has national top of mind awareness gives you the benefit of the franchisor driving brand recognition and customer growth on your behalf.
“Brand recognition can boost traffic right away,” says Laurie Pollock, a senior franchise consultant at FranChoice. “Effective marketing techniques are of significant impact as this is often an area where small business owners struggle.” Your monthly marketing fee could fund a national marketing campaign that dwarfs your current flyers on specials board currently posted on the shop window.
2. Receive support from the franchisor
Right now, as an independent business owner, you are responsible for every detail of your business operations. From finding an efficient bookkeeping system, to cost analysis and sourcing quality suppliers for any new options your customers might be interested in.
If you join a franchise system, the resources to help you figure these things out will be available to you from your franchisor. “Franchisors keep abreast of the changes on behalf of their franchisees, so owners can focus on their customers,” says Pollock.
3. Benefit from increased purchasing power
As a franchisee, you should expect significant savings on inventory thanks to the franchisor’s bargaining power. Besides the benefit of being associated with a large system, franchisors are industry experts. This helps you – as experienced as you are as an independent business owner – capitalise on a combination of best practices and the latest technology, in addition to group buying power.
4. Adopt a proven (winning) concept
When you started your business all those years ago, it only had a 10% chance of being successful. Sustain your triumph thus far, by buying into a system tested and proven by other business owners in the franchise chain. The franchise’s current franchisees who have produced the highest possible level of success from the business are good testimonials while making your decision, but remember that:
“Before converting and becoming part of a franchise system, you may need to shift your thinking from ‘I’ve always done it this way’ to ‘I’m ready to learn a new way; I’m ready to do it your way,’” advises Pollock.
