Every franchisor dreams of being the next Mc Donalds or Subway but what they do not realise is that it takes strategic planning and due consideration to grow to that stature. Planning for expansion would require you delve into some key issues. Here they a
Dreaming big is what paves your path to growth. So if you are thinking of expanding your business to reach out to a grater number of people, you need to be sure that you draft your expansion strategy well. A little negligence and over looking of things can bring down your business and reputation. So when you’re on the path of expansion keep the following aspects in mind.
Analyse your potential
The first and foremost criteria to consider are whether you need to expand or not and whether there is a potential to grow or not. Undertaking expansion when it is not required or advised will be moving a step backward rather than moving forward. If your business is scalable, you need to decide upon how many more outlets you wish to open or the number of franchisees you wish to appoint. So first analyse all the business prospects before you initiate spreading out.
Identify expansion destinations
After identifying your potential to grow, you need to classify areas and destinations you wish to penetrate into. Metros, tier I, tier II and tier III cities, whatever is your pick; your next step would be to decide the vicinity. Within these areas you further need to find the apt locations for your stores.
Seek potential franchisees
Identifying location will be followed by the spotting the potential franchisees for running your business. The criteria for looking out for franchisees will be the same as usual; finding like minded people with enough finances makes the business rolling.
Before entering any market, carrying out a thorough market research is necessary. The research will give you a clear picture of the business aesthetics of that market making it easier for you to evaluate how beneficial it would be to carry out business there.
Every area and possibly every city may have different legal rules. Legal documentation may differ from place to place. To know about the permits, licenses, taxes and other legal issues will help you to deal with them in an effective way. Getting information before hand will make it easier to start operations at a later stage.
Supply chain management
Franchising is all about maintaining your supply chain for making available the raw materials and other supplies to all your franchisees. Before initiating expansion, you must ensure that you can manage your supply chain in those areas as well. Lack of supplies as and when needed will head to lack of upholding the standard levels.
Once all these considerations and practices are in place, you are ready to take on the highway! So go take the leap... Happy franchising!!