Benefits of Franchising Your Business
As an entrepreneur continues to grow their business, managing all aspects of the day to day business effectively quickly becomes a challenge. Multiple locations of any enterprise involves many moving parts, all of which need to be monitored and maintained in order to sufficiently and successfully exercise a typical day of business. Elements such as staffing, customer service, sales and brand continuity all become more and more difficult as Growth can lead to unsustainability if not acted on properly. Business owners frequently wish for expansion, but fear their ability to control each operational process will become muddled or lost altogether. And, in most cases, they are probably right. Many times, business owners who grow through company-owned and managed locations run into obstacles that hinder growth as the business expands beyond what they can manage directly.
It is at this crossroad in a business’ growth that franchising becomes a viable expansion option. Franchising your business allows you to multiply a brand’s footprint, but with added manpower and capital to scale the growth. The value of having independent business owners who have money invested and their direct, onsite focus is enormous and the performance of franchise-owned and operated businesses almost always outperforms company-owned locations of the same business model. Franchising your business can also reflect positively to the business’ image, as the public sees this new business as locally owned and operated and if the franchise owner is the right person they are connected to the community and know how to connect to consumers in the area.
People are naturally attracted to familiarity, and a process that is consistent regardless of the location in which it is being executed will lead to successful results. Franchising allows a brand to grow and duplicate at several levels. At the national or global level, all franchisees and corporate units contribute to a marketing fund that is used to promote the brand and build awareness for the company. At the regional level, franchisees work together through regional cooperatives where advertising dollars are spent in a region to build local awareness and leverage economies of scale in advertising and promotion spend. At the local level, franchisees are required to spend dollars in promoting and advertising the business in their immediate market. The combination of the advertising platforms maximizes the opportunity for brand development and makes franchising a win-win relationship between franchisor and franchisee.
Franchising your business allows entrepreneurs to attract other like-minded people with a thirst for owning their own business, but with the desire to have guidance and support along the way. Many do not want to endure the time, effort and risks inherent in starting a business from the ground up. By purchasing and joining a franchise, franchisees are able to reduce the stress and increase the chances of success. Franchising your business will naturally pool resources together – collaboration amongst franchisees leads to sharing of ideas and proper quality checking of each system and process. A business owner benefits in having easy access to criticism in an appropriate and relevant manner.
The benefits of franchising your business can be extensive, but when it comes down to it, the key benefit is a transition from operational focus to strategic. The entrepreneur who is able to make this transition stops focusing on the small items inherent in managing a business and begins to focus on what strategic aspects will help drive the growth of the brand and scale the business. The funny thing about this transition is that people who are stuck in an operational mindset many times are busier and work harder than those who are strategic-minded. Franchising is a big picture initiative where the product becomes the business model itself and with each transaction, the brand grows exponentially.
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