A true businessman is one who is always excited about the expansion of his business into new horizons. There are a number of options available for the expansion of the business. Out of the available options, franchising is the most appropriate and success
Expansion of a business is a dream of every businessman. How and when to do that, is what an aspiring business has to consider. Franchisors rise or fall due to the amount of expertise and foresight they have and what they have transferred to their staff, in order to avoid the inevitable hazards. It is important to consider three stages while going for expansion of the business. These are franchise practicability, legal help and management of the franchise business.
Franchise concept or practicability
Some franchisors start franchising without doing any research on the feasibility of the concept. This can be a detriment to their business as well to their franchisees. Franchisor intending to franchise the business must have comprehensive knowledge about the marketplace, about socio-economic conditions of the people and about various systems related to the franchise business, etc. If the business has a lot of competition and the franchisor has nothing different to offer than expanding it would surely lead to failure. Aspiring franchisors should employee and take the guidance of a good franchise consultant for expansion. It is true that any business (whether profitable or not) can be franchised, it doesn’t mean that a business ‘should be franchised’.
Establishing a franchise company is the prime concern of any new franchisor. A lot of proficiency is required to correctly complete this work but many emerging franchisors unfortunately believe that franchising is a ‘do-it-your-self’ project. Providing a ‘franchise kit’ is important but starting a franchise business needs more than the mere kit. Recruiting professional help in undertaking the rigorous tasks of compliance with disclosure laws and the drawing up of contracts when starting a franchise is the best course a franchisor needs to take. Employing a franchise attorney to prepare legal documents for executing franchise plans is a must for any new franchisor. All the franchising plans should be in legal form rather than in the franchisor’s mind.
First time franchisors are usually successful entrepreneurs who have selected the franchise path over other means of expansion, but they have a natural tendency to think that because they were able to successfully run the previous business, they can also run a franchise company. Franchising is a highly complex and competitive industry in which some extraordinary skills are essential. Emerging franchisors need to hire experienced personnel who can assist in expanding the business. No matter how good the concept is or ,, the amount of effort you have put in to research or have also hired attorneys but if your management is not up to the mark then it will lead to business failure.
Franchising the business presents tremendous opportunities for personal and professional growth. When handled correctly, the role of a franchisor can be as exciting and rewarding as any business venture conceived.