Opening up a business is tough. There are so many things to consider, but ultimately you need a product you can make money on and one that people want. Having a successful business may be enough for you, but some wish to expand and have multiple locations. You can do this by owning each one or franchising your business.
Expanding your business franchise means working with the best people and equipping them with the training to be successful. You may expand into multiple franchises, and that is pretty impressive. If you want to grow beyond that, how do you do it? Here are some tips on how to expand your business franchise.
1. Perfect the business model.
Your business needs to be strong before you can franchise it. That means it is profitable, popular and will work in several markets around the city and beyond. While these are business traits you want at your location, it is also vital to duplicate your success.
Creating an easy-to-follow business model will help you grow and give your franchisees a clear-cut roadmap to follow. You have to perfect your offerings and streamline the production, so it doesn’t fail. Make sure your location is running seamlessly, and you can communicate that success to the other locations so they too can be profitable. Give them the blueprint to thrive based on your business model.
2. Hire a franchise lawyer.
Navigating the franchise landscape is daunting. You can sell your business concept to someone else and help them open up their location, but to be successful and protect yourself, you need to seek professional help.
A franchise lawyer is there to help you structure your franchise system to be successful and make you aware of any legal issues that can result from expanding. They will prepare all documentation, including agreements, leasing, disclosures and protect your interest above all. They are a vital member of your team and the first expert you should work with.
3. Build business relationships.
Being a success is a group effort. You must have a strong relationship with your franchisees and vendors, accountants and other business contacts. You are selling your dream to other people, and they need to know they can trust you as they get up and running. Treat your franchisees like your best customer because you both need each other to thrive.
This relationship will benefit you the most because their success is your success. The more trust you build in your business dealings, the more you will expand.
4. Provide business training and resources.
Nobody is profitable by accident. You worked hard to make your business a success, but your franchisees don’t know your journey to get there. They need to follow the same path you did, without the pitfalls, to do well. Standard operation procedures allow people to duplicate your location and keep the brand on point.
Become a teacher and spend time training them. This includes managers to employees. Build an extensive training manual that they can turn to learn your methods and be available to them when they call because they will contact you a lot. When they have the tools to succeed, your business will thrive.
5. Let the business expand naturally.
One of the biggest mistakes is trying to grow too fast. While there may be reasons for quick expansion in certain situations, it’s better to let it happen organically. You want your brand to make it, and the best advertisement for your franchise model is the popularity and profitability of your locations.
As you expand your business, don’t put your name and reputation at risk. Choose partners wisely because it’s hard to manage franchise owners. Expand when the right people come to you and watch your brand flourish.
As you grow, you need to be open to change as well. Businesses evolve, and to maintain your success, you will have to pay attention to the market and pivot when necessary. This includes your offerings as well as marketing and operational procedures.
6. Think local and national business expansion.
When you expand, it doesn’t have to be across the world. It will be easier to contact and get new locations up and running if you start more local. There is nothing wrong with opening up locations around the country if that opportunity opens up. Just remember to help all locations connect with their community. This gives the brand a small business feel when it does local marketing and is involved in local events.
Make sure there is room for growth by analyzing the territories your franchises move into. You don’t want to compete with yourself. Support all franchisees regardless of their location.
Having a national marketing strategy is great, but it must work for all locations. Find that balance as you expand and keep your identity local and international.