The positive outcomes when franchising a business can be endless. A franchisor can reach across the full spectrum of business types, ranging from a small independent shop to a large corporation. Franchising a business can result in the development of a brand across multiple locations throughout the UK, with extensive financial rewards.
However, as a business owner you cannot just decide that franchising is right for you. You must undertake extensive research to make sure it can fit your specific business model.
To help, here are our 7 steps to becoming a franchisor:
- Explore the benefits of franchising and make sure it fits your business model. From the outset you need to understand what makes a successful franchise business and ensure your business can match these requirements.
- Outline your franchising plan, consider it an extension to your existing business plan. Key areas to include are longevity of the business, management strategies, flexible and easily translatable processes and earning potential.
- Create a pilot franchise to ensure what you are proposing will work. Very few businesses undertake a pilot when in fact it can give you so much knowledge and understanding of how to get things right from the outset
- Upon successful completion of the pilot, finalise your franchising plans. Make sure you fully evaluate the outcome of the pilot and adapt your initial plans to correct any areas that could cause issues in the future.
- Make sure you register with the correct business and franchising associations to demonstrate credibility. As a minimum we would recommend you become a member for the British Franchise Association
- Take time to assess potential franchisees, don’t just sign up anybody. A potential franchisee needs to be right for you and your business model. This will arguably be one of your biggest challenges.
- Once you have signed-up some new franchisees there is no time to relax, they will need support, help with introducing new clients and most importantly ongoing training. Ultimately, they are representing your brand so make sure they do this in a positive light.
If you have any questions or need help with any aspect of franchising, please call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.