If you’re one of the army of dedicated entrepreneurs who have managed to build a successful business, then now may be the time to review how you are going to grow in the future. Expanding a brand involves getting the right people in place and having key strategies for growth as well as deciding how much is going to be invested.
One option you might like to consider to develop your business further is to operate a franchise. It’s something that most entrepreneurs consider when their company has started moving forward and is past the start-up phase because there are a number of benefits.
Sourcing Great New Talent
The people who take on a franchise are normally highly motivated and are willing to invest in your idea. That means you improve your talent pool while also developing the opportunity to expand. Bringing bright new minds on board who are going to be as focused as you can help your brand move into new and exciting areas. Because these people have invested themselves, they are undoubtedly likely to work harder to help you develop your company.
Getting Talent to Invest
Because franchisees have to find the money to invest in your operation the financial outlay for expanding your business is reduced. You are basically bringing in additional revenue in exchange for a bigger share of the profits, rather than paying an individual a set wage. This enables you to expand into several new areas in a short time rather than waiting until you have the capital expenditure available.
If Your Business is Good, the Risk is Low
As you won’t be putting as much of your own money into the franchise opportunity, this is a low risk way of expanding without investing in infrastructure and, if you have the right business model and select the best franchisees, means that you can earn good royalties.
While it sounds great, there are, as you might expect, some caveats that you need to consider:
- First of all, you have less control of the people who take out franchises – in other words, you can’t treat them like normal employees.
- Secondly, it can sometimes be difficult to get individual franchisees to work together as a team and bring your brand forward with a clear vision.
- And thirdly, it can also be difficult to innovate – when you want to bring in a new idea you may have to negotiate with franchisees to get them on board which can be time consuming.
A lot will, of course, depend on the type of business you run and whether moving to the franchise business model will work for you. It’s not simply a case of putting your brand out there and looking for people to invest their time and money. You have to have the right selection process in place and be clear about your plans for the future. Get it right and you can develop your brand wider and faster than you would be able to if you were simply dependent on the investment capital you have available at any moment in time.
If you would like to find out more about franchising your business then we would love to hear from you. Get in touch and we’ll be happy to answer any questions that you may have.
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