All business owners will admit that they have a secret desire for their company to expand as well as possible. For many, this is one of the primary aims or motivation for having the business at all. One thing is for sure: it is often seen as a strong sign of ongoing success. However, that is not to say that owning a franchise is a walk in the park. Even once you get to this stage, there are countless potential problems and issues which you may have to deal with. Indeed, your work does not end when you franchise; in many ways it has just begun. In this article, we will take you through some of the key considerations you should bear in mind if you have a franchise to run. Let’s take a look at what those might be.
One of the main reasons that you will successfully springboard into being a franchise will be because of a strong brand. It is this which will enable you to spread your resources thin and still operate well. Of course, this means that this is also one area which you need to focus on in a strong way. You need to ensure that you are remaining loyal to your brand, no matter where you operate. This is something which can be difficult to maintain, but ultimately it just comes down to communication. As long as you are keeping in touch with the management of your various chains, you can ensure that the brand is being adhered to. It might even help to set out a style guide for your people to go by. That way, you can make sure that everyone knows exactly what you expect of them. Doing this will ensure that every limb of your expansive company remains as brand loyal as possible. And the more brand loyal it is, the stronger the brand itself is. This itself leads to a better performing business in the long run.
Many business owners find themselves franchising out a business because it is a good way of making more money in a short amount of time. This is true, and it is one of the main benefits of doing this. However, there is another side to it all as well. When you have a franchise to look after, you will soon find that there are also a huge number of hidden costs which you should be aware of. Knowing about these beforehand will help to give you a head start when you go through with it. A lot of these costs are simple multiplications of what you will already be paying out. Yet, many people forget to take them on board. Let’s take a look at rent, for example. It goes without saying that you will be paying rent on all of your buildings. But have you calculate just how much that is? And are you sure you can afford it before the next profit comes in? You need to be absolutely certain that your business can take this kind of hit first of all. And that is not to mention utilities and so on. On a more personal level, there is also a good chance that you will have to spend considerable money on travel. Chances are, you will be travelling from one outlet to the next. Make sure you can definitely afford the entire venture, otherwise there is little point.
Of course, having a franchise means that your business is operating in many different locations at once. The ultimate goal is for these to operate as one seamless whole. Yet, there is a strange paradox here which needs investigating. While you do want to make sure that your business operates as a single unit, you also want to afford the same kind of existence to your individual chains. It is essential that you allow each part to operate locally, as ultimately that is where they are actually carrying out their business. In fact, it is all related. If you look after the way in which the business runs locally, you are looking after it as a whole. It might help to use a local brand analytics service like chatmeter to ensure that this is landing correctly.
Here’s something they don’t always tell you. When you first franchise your business out, it will actually experience a drop in sales for a short time. This happens to almost everyone, and there is a very good reason for it. At first, your franchises do not know how to operate optimally. It takes time to get used to this, even with a lot of experience and money behind you. Bit by bit, however, you need to put some effort into ensuring that the efficiency improves. This can actually be achieved quite easily. Ultimately, it is all about integrating the various processes from the bottom-up. Doing it this way round gives your people the power they need to succeed. It also takes advantage of any local differences that there might be. A more efficient business will get back on its feet a lot faster, so this is vital.
Expanding At The Right Rate
Chances are, you are keen to continue expanding long into the future. Again, for many this is the whole point. If that sounds like your dream, then there is nothing wrong with that. Just bear in mind that you should be careful to expand at the right rate. What does this mean, exactly? Ultimately, it is about taking it slow enough that you can be sure of any continued success. Yet, you don’t want to take it too slow, or you might end up stagnating. Finding the perfect balance can be tough, but all it takes is some forward-thinking and a little practice. With the right approach, you will soon find your business expanding at just the right rate. Then it is just a matter of knowing where you would like to take the business next.