If your business has been happily ticking along for several years, it might be time to take it a step further. Franchising your business can help you to compete with big companies, as your company will suddenly have a far wider network and a pool of support from the franchiser.
But it’s not always easy to know when this is the right option. In 2021 alone, between 8% to 12% of franchise businesses left their franchises, mostly due to financial failure. It is important to know exactly when the time is right and whether your company is prepared to go big. Here are seven signs that indicate when you are ready:
You Have Realised Your Business Is Not Location-Specific
One of the reasons franchise businesses fail is because the owners have failed to realise they are location-specific. Your business might be doing supremely well in Manchester, but that might not translate to the rest of the UK or, indeed, the rest of the world. For B2B companies, specifically, it is important to be aware that a client base in one location might not be the same elsewhere. With strong B2B communication – including social media platforms with far reach – you can ascertain if you have broad appeal, and this is a sign that you are ready to branch out.
Your Business Concept Is Already Being Replicated
If your business is already being copied by other businesses, then don’t take this as a negative. In fact, this means that it is the right time to franchise your business and gain success quicker than those who are attempting to cash in on your ideas!
Your Business Has Engaged Employees
Your business should be not only popular with consumers but employees too. If you are going down the franchising route, you are about to attain a wide number of new employees, so it’s important that the ones you have indicate strong engagement and enthusiasm about what they are doing. This means that the company is strong and the infrastructure can be built upon.
Your Brand Is Going To Land
A good franchise means a good brand. If you have re-examined your USP and realised It is still unique, no matter where you go, then that means your brand is the right kind for expansion.
You Have The Budget To Expand
Franchising your business is not cheap, and you need to know that you have the budget to survive those first few months. There are many reasons why a franchise might fail to scale, with one of them being an ill-judged budget before the work has even begun. If you have a healthy revenue, however, then you have a way to back your franchise up and set it off on the right foot.
You Have Nailed Down Its Longevity
Franchisers are always looking for a business with long-term potential. Your product or service, then, has to withstand the test of time and continue to appeal to consumers long into the future. Take a look at your business plan, take into account potential market changes and work out if there is still room for development. If its longevity is looking assured, then the franchiser is likely to take this into account.
You Are In The Right Mindset
Lastly, it is crucial that you are in the right mindset to take things forward. This business is, after all, your own sweat and blood. Giving control of it to franchisers is not going to be easy, so you need to be resilient and ready for things to change. A franchise will always fail if the leadership is not there, so make sure you take a look at all your options and be content with what you are doing before you take that first step.
Image by Volodymyr Hryshchenko on Unsplash