How Small Business Can Transform Into Successful Brand With Franchise Model?

“Your business needs to have a great brand reputation and differentiation of some kind in your market."

      Many small business owners dream of seeing their business grow and scale over time – not just for their own fulfilment, but in the hopes of eventually selling that business and turning in a worthwhile profit. To make that happen, you'll often need a lot of capital investment to spur growth for your business – unless you choose to turn it into a franchise.

Franchising your small business essentially means you can expand your business using "other people's money and franchise model can propel small companies to great success, everyone is conscious of the Subway and McDonald's wealth and success.

      It can be a rewarding experience to franchise your company when performed correctly. With company-owned locations, franchising can provide small businesses with a path to growth and profitability that is not normally achieved.Franchising has, in many instances, allowed small companies to develop into nationally and globally acknowledged brands that permeate the food services industry to hotels.

      Franchising doesn’t happen overnight; it requires an investment of time and capital to get it right from the outset.

Criteria for franchising a business

At a basic level, to be franchised your business needs to be:

Proven – not an idea, but proven proof of success

Profitable – at a sufficient level for both franchisor and franchisee

Teachable – there's no point in franchising a business that only three people can operate

Transferrable – it should be suitable for different geographies

     In your industry, you will also need an excellent brand and some sort of differentiation. And it's essential to have a long-term appeal for your business instead of being a temporary fad.

Consider your business concept and model.

      Your first port of call is to consider your business concept/model and whether it's viable to turn into a franchise. You may be offering the same old service as anyone else, but do you have a unique twist on it? If not, what would compel a franchisee to buy your franchise over starting their own business with the same services?

      Examine whether you have a unique selling point (USP), an established brand name, or demonstrated success with organized plans or refined techniques. These are all elements that will encourage a franchisee to franchise your business over starting from scratch. You want your concept to appeal to both consumers and franchisees, and not be dependent on your own personalization to thrive. In other words, your concept needs to be replicated by everyone.

Prepare your small business for a change.

      You must understand that your role in your business may change when you become a franchisor. Scratch that – it will change. You will no longer be responsible solely for running your business, but also for supporting franchisees and selling franchises. You'll have to give up some of the control you previously had with your business and delegate your tasks to someone else.

      Ask yourself whether you're happy to relinquish some of that control and take a step back from your business operations for a while. If you're so intertwined with your business concept that you can't bear the thought of someone else taking over, then perhaps franchising isn't right for you.

Pick your business franchisees wisely.

      A big mistake many franchisors make is that they want to see their business grow as fast as possible, so they sell franchises to just about anyone. For your franchise to succeed, it's vital that you choose the right franchisees. Often, you'll find that the perfect franchisees are already working for your business.

When choosing a franchisee for your business, capital isn't always as important as finding the right person who believes in your business model. You'll be engaging with your franchisees for the entirety of your working relationship, and it's vital that you choose self-motivated people who are:

• ·         Passionate about the industry.
• ·         Open to criticism and advice.
• ·         Loyal to your brand concept.
• ·         Motivated toward business expansion, thriving on business challenges.
• ·         Willing to adapt to develop the company in their lifestyle.

      As your small business grows, keep an eye out for staff members who have goals and values that align with your business model and have shown loyalty in the past. These will be the best franchisees when it's time to take your business to the next level.

Summary

     For small business owners, franchising is a way to expand more quickly and cost-effectively than opening further company outlets, by granting people (franchisees) the right to run their own business under your brand and systems.Franchising can help you to expand your business and propel it to a whole new level, Franchising your company can be an excellent way to grow your business.

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About Prakash Bhosale:- 

Prof. Prakash Bhosale is the entrepreneurship consultant for startups. He is a serial IT, Media entrepreneur  & leading business consultant He has Over 15 years of experience in education, corporate, IT, e-Marketing, Consulting domain. He is a columnist on business & entrepreneurship with newspaper, magazines, portals, published over  1100 articles. He is the writer of the 4 books on business, entrepreneurship, business ideas. He also guides   PhD fellows, business plans, DPR preparation.

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