Next time you go out for food, service or anything, pay attention to the businesses you go to. 60% of these businesses are some sort of franchise, from clothing stores to food joints and speciality services.
Franchising is the key that will unlock the growth potential that you simply cannot do as a corporate store.
When your shop/business is booming and providing great service to the clients, you naturally want to expand it. Franchising not open helps the business owners expand quickly but they are able to do so without much risk to their capital and still be lucrative to the investors.
However, there are pit-falls to watch-out for when franchising your booming business
Pitfall #1: Hire a consultant that charge you a fortune (Yes literally!)
You see when franchising your business, we are almost not sure where to start! We rely on the knowledge of a consultant who can guide them. In the quest to create ultimate brand, we fall into this trap of paying some a fortune for the things that they will do in the end eventually!
Consultants are able to charge so much money because the business owners have no idea on how to franchise their business. But, once you understand the framework of a “Master Franchise Blueprint®”, they are not only educated but are able to have a 30,000 birds eye view of the path they need to make this happen! There are not many books written on this subject matter (at-least not that I have read).
To avoid someone charging them a fortune, get yourself educated on the process of franchising. Most successful businesses who are franchises have followed a blueprint, that you can use to convert your business into a franchise fast!
Pitfall #2: Your business is booming, but it cannot run when you are not there
Ok, I know it feels amazing that your business is doing great and you feel proud of it (and you should be!). However, when you are not there, the business just stops to operate or the sales drop considerably! This is a big problem for you as a business owner, because you just simply cannot give this business to someone when you are not there!
Now to fix this issue, you have to learn to take yourself out of the equation slowly and make processes and systems that will make sure your business runs on auto-pilot when you are not there. Every aspect of the business has to be automated (when i say automated, it means a process has to be developed that everyone follows like a machine), that will streamline your business and give you the output that you desire.
If you look around, all major brands (McDonalds, Subway etc.) have systemized and automated their process to the N-th degree. From coffee machines that make exactly same coffee to burgers. Everything is automated and followed by franchisees like blue print.
Pitfall #3: You expect that your franchisees will become as successful as you are
Its a common belief with small business owners that since they are successful, their franchisees are definitely going to be! Well, I am sorry to say, but the truth is that it’s not the case. For your franchisees to be successful (especially when you are new and just started to expand), its important that you nurture the new business owners completely to make them follow the foot steps you have followed to be where you are! If you are able to have great client conversation and able to retain more clients by doing so, then you have to make sure that you teach same strategies to your franchisees.
Many such strategies are often overlooked and we think that we cover all such aspects in their initial training. You have to make sure that there is a great difference between training on computer screen and training with real scenarios (hands-on) experience. Your franchisee MUST learn all those small nuances and strategies you used to be successful.