Andy Georgiou from Fransquared discusses the key points you should consider when deciding whether you’re ready to franchise your business.
You should consider a couple of key points for whether you are ready to franchise your business:
1. IS YOUR BUSINESS PROVEN AND PROFITABLE?
Proven in the sense that you’ve been running for an extended period, successfully growing, and showing a clear demand in your market. This might be anything from 18 – 24 months, ideally longer. The longer you have been trading the better as it shows the success over an extended period which both proves your business model works and may appeal to potential franchisees. Anything less than 12 months isn’t likely to be long enough in terms of franchising your business, because it’s simply not enough time for you to demonstrate that you’ve been trading successfully over a period and can prove your concept works.
Profitable means not only will this make someone money, but good enough money for them to consider it a better option than employment and worth their time to invest in. If you’ve got a full-time franchise opportunity that will make the owner an entry-level wage, then it’s probably not quite ready. If it can make or exceed what they’d receive in a job, then the freedom and flexibility of running their own business will be attractive along with the earning potential.
2. IS YOUR BUSINESS EASILY REPEATABLE?
You’ll need to train someone to replicate your business services, products, programmes, customer service etc so ensuring it’s a relatively simple model is essential. If you have a complicated business model, use many systems, onerous administration tasks and various complicated processes then it can become difficult very quickly. Simplify wherever possible.
One of the biggest reports of franchisee dissatisfaction is with the amount of time it takes to do simple tasks in their business (much like any business owner) so if you can automate tasks, create simple systems and processes, and not burden the franchisee with too many time-sapping things to run their business it will be well received and better in the long run.
There are a few other things to consider ensuring suitability to franchising, but the above two are non-negotiable.
For more information on how to franchise your business, visit https://www.fransquared.co.uk and book a call today.
Watch Andy’s talk ‘How to Franchise Your Business’ by clicking here.
Andy is a leading Franchise Business Consultant – fiercely committed to guiding business owners and established Franchisors to build happy, profitable and successful franchise networks. With qualifications in Management, Digital Media and Marketing, he has helped build, advise and grow leading 6 and 7-figure franchise brands over the past decade. His business (Fransquared) is the number one rated franchise consultancy on Google.
Andy is also the Founder Director of ICAP: Institute of Children’s Activity Providers and a specialist in the sector.