How to Grow and Build Your Business With the Franchise Partners
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Your business has reached an optimal scale and size. What’s the next big step you can take to diversify and increase the scale of operations? If you are thinking of outsourcing sales by the channel of creating franchisees and expanding the brand name, you are on the right track.
The franchise is a safe business model with ample scope for growth and opportunity. However, there are words of caution you have to administer while you intend to join hands with a new franchise partner and expand your brand name. It is a big step as it mandates operating in a new territory, may be outside the domestic front as well. Also, you are partnering with someone with a different background and ideology. Do not panic and you will sail smoothly as you keep in mind the following tip-offs to build a sustainable growth channel:
Do the Research and Development Well
Do not be in a hurry and study the market graph and the prospective client market. You ought to study the consumer buying pattern and the purchasing power in the target market. You will want to set up a franchise outlet where the sales are expected to be beneficial.
Reena Aggarwal, the founder of Home Furnishings, says, “Setting up a franchise store would be beneficial if the target market supports the product and relates to it. The study of the prospective client market is mandatory before pitching in the idea of franchise availability.”
Study the Prospective Franchise Partners Carefully
You are putting the power of control in the hands of someone else. You have to make sure that your ideology resonates with that of the franchise partner. Also, it is a relationship based on mutual trust and faith. It is quintessential that the terms and conditions are crystal clear and build a relationship of trust.
Taylor Routsala, Marketing Director of Konnect Agency, endorses, “You will be passing on most of the control to the franchise partner and will be retaining a relatively lesser percentage of it. Be careful as you analyze the profiles of prospective applicants and make sure you are able to create a passion for the brand by maintaining a transparent relationship.”
Reena also emphasizes that you analyze the working capacity of the franchise partner. Simply answer the questions like does your work culture identify with that of the partner. Do they think and act like you? Would their working style give you the desired benefits? These queries will help you take the right call.
Identify Your Goals and Outline Your Policies
This is a major decision-making factor. You need to clearly outline the targets and end goals. Do you want to pass on the brand name to an already established brand and increase sales or do you want to expand the sales and build your own brand name across various markets? Do you wish to retain your identity or let a strong brand leverage your sales? This will help you take a decision in the right direction.
Rajat Bhatia, CEO of Geekay Bikes, suggests, “You need to be clear in your fundamentals if you wish to let out a franchise. This will help you outline the sales policies and the employee welfare policies in the right manner.”
Training and Feedback
This is the most important step to build sustained growth. The customer feedback should be sought judiciously. The franchise outlet should have continuous communication and complete back-end support. The managers and employees should be trained at regular intervals.
Pranav Chadha, Managing Director of Baum, says, “It is the regular training of the new employees which makes them identify with the brand goals. The company should be in touch with the daily practices of the franchise store so as to offer any help and support needed. Continuous communication builds a sustainable long-term relationship.”
The Bottom Line
Letting out a franchise is easier. Building a sustainable growth model with a long-term relationship based on trust is the glitch which needs to be meticulously handled. You have to be clear in your policies and communicate with all your franchise partners articulately. Their doubts and queries should be addressed diligently so that there is no room for confusion and ambiguity. You will have your brand name well established around the globe when you exercise little care and caution.