How to Know if Your Business is Franchise Ready
Free Book Preview: Brand Renegades
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
If you know that you are gaining popularity in the new arena you have stepped in, it is time to ask yourself some questions and check whether you are ready to offer a franchisee model to prospective stakeholders. Here are some questions to ask yourself:
Are you Creating a Brand
You should also have your brand philosophy and systems, Standard Operating Procedures in place. Once you initiate this, you will find it easier to break a mental barrier and plan on lines of becoming a Franchisor. As an entrepreneur, organize outlines for operations, communications and methods for franchisees to attract new customers. Entrepreneurs must clearly and succinctly describe every facet of branding and operations to everyone, from investors to potential franchisees.
Can your business model be replicated?
“Remember that while you might be a great entrepreneur and work best at your own establishment, the others that will be replicated need to be self-sufficient and function on their own’” Kyle Zagrodzky, Guest Writer / President of OsteoStrong Franchising. Again, have operations for day-to-day functioning well defined and ready for the model to be replicated and ready to be taken on by a prospective franchisee. A company can only thrive into a great franchisee when it is independent enough to function and handle challenges without the franchisor’s physical presence.
Am I ready for more think tanks?
While your own business is best handled by you, if you feel you are mentally ready to share your strategy, invite newer ideas and willing to take your entrepreneur model to the next level, then it is definitely time to become a Franchisor and invite more like-minded franchisees.
Popularity Speaks For Itself
This would mean that people are asking about your business, then it is time you should think of franchising. These franchise inquiries mean that, not only are more people on the prowl for a franchise business to invest in but also that your business concept is unique to them and is actually worth replicating in their territory. Of course, franchise inquiries alone are not enough to say that your business is ready for franchising, but they are a strong indicator that people will be interested to invest in your business concept once it opens for franchising.
Profitability has been Proven
Sam Christopher Lim, Senior Vice President (marketing and strategy) at Francorp Philippines, a franchise consultancy suggests, “a prior proven record of three to five years of profitable growth prior to franchising is a good option. However, one year of profitable growth is enough to determine how your business will fare given the different seasons and movements of the market. Also, this would have given you enough time to further improve business operations and strategies, which will be important once you go into franchising.”
This article was orginally published on Franchise India by Uttara J Malhotra.