It’s a common question small business owners ask at one time or another…should I franchise my business?
Though this is a personal choice for each owner, here are just a few of the reasons that the model has been proven over the years.
- Faster Expansion
- Lower Costs
- Simple Management
- Greater Commitment
- Better Market Penetration
- International Potential
- Less Recruitment
If these reasons weren’t enough, scaling a business at a managed pace can be quite lucrative!
In fact, a franchising concept can be one of THE best ways to grow a brand when an owner doesn’t want to figure every detail out from scratch.
Why should I franchise my business, can’t I just grow it on my own?
The problem with most small businesses is that the first and only location, the heart and soul of the on-site owner. That location may be successful thanks to the instinct of the owner on location.
That is, though the business ‘works’ with one location (generally because the owner uses his intuition), it’s generally not a formula for successful reproduction on its own. Why? The same thing that makes the primary location work, the owner, is missing from all the other locations!
When an owner asks ‘should I franchise my business’, he is generally at a point where it’s clear to him that on site intuition is not the best way to take advantage of OTHER people’s skills and capital to grow his brand.
What’s missing? Well, to run many ‘copies’ of a primary location, precision is required…the business must run like a military unit ‘type of precision’ in fact.
Most small businesses simply don’t have the experience or know how to process steps in such an outlined and repeatable fashion. The idea of making successful photo copies of store number one quickly unravels.
This is where franchising consultants step in with proven methods for franchising models. In fact, sources claim that in 2007 almost 10% of all businesses across nearly 300 industries were franchises…it works.
Franchise development consultants, or franchise consultants, are often there to guide a business owner through the legalities, planning, training, documentation, marketing, the list is exhausting for a business owner to tackle alone (all the while running his business).
So, you may ask as a business owner, should I franchise my business?
We say the proof speaks for itself. Could you do it on your own? Sure, but why would you risk the time and uncertainty?
Call NFA today, as experienced franchise development consultants, we are here to help!