What are the signs that your business is ready for franchising?
Franchising is all about replicating a successful business which other entrepreneurs can take advantage of. It’s an ideal form of business expansion as franchisees will be responsible for the entire investment in opening locations allowing the franchisor to grow far faster.
However, many business owners don’t easily recognize signs that their business is ripe for franchising.
Your business doesn’t need to be as successful as Jollibee to be open to franchising. Here are some signs that you’re ready to be a franchisor.
1. People are interested to franchise your business.
If a person is asking if your business is open for franchising, there’s a big probability that he or she believes in your business concept and is interested to invest in your business.
2. Business owners are trying to replicate your business concepts.
Many entrepreneurs copy business concepts to ride on a business’ popularity and success. It’s a clear indication that your basic business concept can be replicated and may contribute to the success of other businesses. While this may negatively affect your business, use this as an opportunity to evolve and level up to get the edge over copycats.
3. You have at least one operating store.
While it is essential that you have at least one operating propotype, it is ideal to have three or more operating stores before franchising. Having multiple existing branches will enable you to streamline business operations and show your potential franchisees the ins and outs of your business.
4. Your business has experienced a year of profitable growth.
Having a year of profitable growth is essential to franchising as it will help you determine how your business will do in different seasons and movements of the market. A year of growth also gives you enough time to polish your business operations and strategies.
5. Business concept and operation can be easily taught.
Most potential franchisees are first-time entrepreneurs so it is important that your business concept and operations are simple enough to teach. There is a need to simplify, organize and streamline your business operations prior to franchising to make it easier for potential franchisees to replicate your business.