STARTING A FRANCHISE
IT’S SIMPLE — BUT IT ISN’T EASY
Starting a franchise is simple— but it isn’t easy. Much like venturing any path in the business landscape, it requires advanced planning and impeccable strategy, followed by right execution, to grow and sustain in the long run. There’s a host of things that need to be factored before striding ahead and committing yourself.
Here are 7 broad steps that one should go about to have their foot set in the right direction:
Step 1- Is your business ready?
Not every business is ready for franchising – most of them aren’t even suited for this model. So before venturing this path, run things through different parameters to make sure yours is an establishment that’s ready to take a giant leap ahead. Do a thorough market research, understand the pros and cons of this model, look at your finances, and then prepare for the big change.
Step 2- Get familiar with the legal juggernauts
Adapting to the franchising model includes a wide range of legal juggernauts, right from registration to following the country’s various regulations. While you can hire professionals for assistance, you must also get yourself familiar with the entire legal paperwork process.
Step 3- Time to make some important decisions
There’s a wide range of important decisions that you are to make in this step. Consider your own goals and preference and then prepare the terms of your franchise agreement. Decide on the geographical area you want to cover, what will be the royalty percentage, the marketing strategy for your franchise and what kind of training will you offer the franchisees. Take a 360 look, factor everything and keep an eye on small details.
Step 4- Register as a Franchisor
Now that all is done and planned, it’s time to move forward with definite actions. Get together with the experts and create the required paperwork. Register your establishment as a franchisor.
Step 5- Build a reliable team
When you’re on the journey to create something very big, you need a strong and reliable team of like-minded people—there’s no other option. So when the registration is done, start making key hires and building an awesome team. Have directors, HR, and other important members of the staff first.
Step 6- Attract the prospects
This is possibly the most important and difficult part. Attracting prospects and selling the franchises. A simple approach is to understand the concerns of the to-be-franchisees and act on them via smart marketing strategies. Leverage powerful tools and social platforms to get your name out there in the market.
Step 7- Assist and support the Franchisees
If you’re planning to sustain your business for long, it is imperative that to have an excellent support system for the franchisees. Get them familiar with the products and other aspects of your business through the right training. Assist them in getting started and offer them a pleasant experience by addressing their problems and helping them grow with rich resources.
Of course, there’s a lot more to starting a franchise than the mentioned process. But these are the broad steps how one should go about in this direction to keep things quick, simple and efficient.
franchising your business
Franchising business concept is relatively new in India. However, its host of benefits has brought it in the certain limelight. The model enjoys prerogative over other business models when it comes to advantages. If you aren’t sold to it already, here are 10 biggest benefits of Franchising.
Given the surging trend in this industry, the opportunities that there is for the new and existing undertakings are remarkably positive. Both the Franchisors and Franchisees are on the receiving end of high-flying outcome. Following the basic franchising framework, the involved parties can swiftly stride towards the ultimate goal of higher revenue.
Too Many Opportunities—Are You Banking on Them?
A franchisor can exponentially expand its wings to new market and wider audience base without getting directly involved in the process. The investment required here is low, with few could-be-bumps in the early stages but a smooth journey in the long-run.
For the Franchisees, the opportunities are just as much to start a company, with less hassle and on-spot expert assistance. The chances of succeeding is much higher, followed by the increased return rate in the given time period.
With all being said though, Franchising is much more than just creating a company’s structure and leveraging brand’s goodwill to own benefits. Even for Franchisors, in the mix of upbeat opportunities, the stake is just as high to preserve their brand’s goodwill by picking the most qualified and dedicated franchisor. The need for reliable professionals and agencies for both the involved parties is essential.
Mentioned already, starting a franchise is simple—it isn’t easy. The real challenge is at the go when things are just taking off. Keeping the fundamental whats, hows and whys clearly sorted, both the Franchiser and Franchisees must have a definite, well written plan to keep the business running smooth and sufficiently.
This plan centres on who you are, what you want to achieve, who’s your partner, what’s your interest—why did you get into this business model? Answer these basic questions to shape your growth plan and strategies that sheer your next course of action.
A Sustainable Model with Low CAC
Franchisees must pay heed to how they can optimally use brand’s market goodwill to penetrate in the market with the least of Customer Acquisition Cost (CAC). After all, just because it’s there, doesn’t mean it’s easy to grab. Just because the brand or partnering company is a renowned name in the industry, doesn’t mean banking on its reputation is going to be easier.
For the franchisors, the initial development phase is equally important. Finding the right franchisee and carrying forward the business in sync with both parties’ goals and preference—it’s a thin line that the franchisors must walk on carefully. They must strive to foster a healthy relationship with the partner that’s beneficial for both.
To keep things sweet, simple and high-rewarding, having professionals by their side is quite important for the Franchisees and Franchisors. Growing and sustaining franchise takes time and right strategy, which subsequently requires experience and expertise.