As a business owner, you might have big dreams about franchising your business. While this can be a lucrative option for many companies, I believe that the decision to create a franchise is often a romanticized, underestimated challenge.
In my coaching experience business owners tend to focus on the big picture when it comes to franchising, yet learning how to turn your business into a franchise requires a look at the minutiae. Franchising isn’t for everyone, but there are ways to boost your chances of success. Here’s what you need to know.
How to Become a Franchisor
Franchising sounds great on the surface: you get to expand your business while someone else puts in the work of running each franchise. After all, you’ve already done the hard part by starting and growing your company, right? Unfortunately, it’s not that simple.
Becoming a franchisor is a complicated process and can be costly if botched. When thinking about how to turn your business into a franchise, here are a few often-overlooked tips to keep in mind.
- Consider your access to capital. Becoming a franchisor requires an up-front investment of time, energy, and resources. You’ll need to hire an attorney and might want to bring in outside consultants while you’re getting off the ground. These perspectives are crucial in the beginning stages of your franchise and can be a source of ongoing support.
- Create a master plan. How many franchises would you like to see for your business? What are your long-term goals? You need to think bigger than the first franchise. Create a plan for how franchising will look for your business five, ten, and twenty years down the road. You should also have an exit strategy for your eventual retirement.
- Have a proven, repeatable system. If you’re struggling to envision how to turn your business into a franchise, it could be that you don’t have the type of system that’s best suited for this type of business expansion. You must have a formula for success that is based on fact and can be replicated by others over and over again.
- Choose the right franchisee. You can do everything right, but your business will still fail if it’s put into the wrong hands. Just like many business owners see franchising as a seemingly easy way to bring in more revenue, many franchisees are naive about the amount of time and effort it takes to make their franchise successful. Choose wisely.
- Offer quality support. As a franchisor, it’s your job to stay up-to-date with your franchisees and provide them the kind of support they need to help their franchise succeed. Their success is tied to yours, so it’s in your best interest to share your resources and provide guidance whenever they need it.
Learning how to turn your business into a franchise can take time, but a business coach can guide you through the process. That’s where I come in. Fill out my contact form for a complimentary coaching call and we can work through the pros and cons of beginning to create your own franchise.