Starting your own business is a very exciting time. Even more exciting is watching all of your hard work pay off and your business flourish as a result. If you do have a small business that is performing really well and you are thinking of opening another location or store then it may be time to think about franchising.
It can be a difficult decision, knowing whether to franchise your business or keep everything under your watchful eye. Franchising is a great option of many businesses but can be even more appealing to those who:
- Want to expand their business using a proven business growth model
- Don’t want to use their own funds to keep opening new locations
- Are not wanting to look after more staff or are being bogged down by HR requirements
- Don’t want to be involved in the day-to-day operations of new locations
Before you dive straight into franchising your business there are a few things that you need to ensure before you can move forward.
- Check Your Business is Ready
One of the most important questions you should be asking yourself is if you have a business concept that consumers love and want. Would they really be looking to visit a second store if you had one? Even if your business is doing really well and you are seeing great profits, that doesn’t mean that the demand is there for multiple store locations.
- It’s All In The Process
If you have decided that a second location would be a success then you need to ensure that you have all of your processes and systems in place. You need a system that can be easily replicated as well as processes that someone unfamiliar with your business can understand and put in place straight away. These processes and systems need to be written down for anyone who becomes a franchisee. At the end of the day, ask yourself can my business be cloned without needing my personal touch.
- Law and Order
Turning your business into a franchise model isn’t as easy as you may think. There are strict Australian and NSW state franchise laws that need to be followed. This is where you need the help of a legal expert. A franchise lawyer will be able to tell you your rights and obligations as a franchisor and what you need to do in order to start franchising your business. They will also help to advise you and create a successful franchise model that you will be able to use across all branches of your business. It’s important to note that all states have different rules when it comes to franchising so seek legal help early on to avoid any mistakes that could cost you further down the track.
Your franchise consultant will work with you to ensure that all your franchising due diligence and legal work is complete before proceeding forward. Once finalised, you will then proceed to look for franchisee prospects. The majority of this process is left up to the franchisee and legal team to sort out. You do, however, need to be available to spend some time training new franchisee owners on your processes and systems. Sharing tips and providing support will help them to achieve the same success with their own business. Don’t forget, all successful franchisee locations will ultimately help you expand your business and profit.