If you are a business owner that has established several stores that are performing well, franchising is likely one of the best options you can choose to further expand your business. Franchising has established the many different renowned brands we know and love today, allowing businesses to grow to amazing heights.
With enough time and dedication, even your small and upcoming business can become a household name that people will remember for years to come. Franchising is an amazing tool that business owners can use to grow their companies efficiently and effectively.
That being said, there are certain characteristics that a good franchisable business must possess to maximize profits. Although not limited to the following, here are a few desirable qualities your business should have for franchising.
It has a desirable location
Having a good location for a business is extremely important, especially if your business caters to the general public. Good locations can vary from inside malls as well as near busy roads, which further boost your profits. Other desirable locations can also be commercial spaces near popular tourist spots, which are easy to access and visible to most people.
Each coin that you could earn by choosing the right location is the profit that you will want. Even if your business does not need people to come to you, location is important nonetheless for the visibility of signage.
Your business is marketable
If you want investors interested in your business, you have to see that they will see your business as marketable. You must ensure that your business stands out and will be successful compared to your competition. Your business should give people a reason to choose it over other brands and prove that you have a competitive advantage over investors.
If you have not made a name for your business already, make sure that people will be able to know your business’s existence. Both investors and customers will be interested in a business that could become the next top brand.
It needs to be easily replicable
Your business design should be simple enough for even the average person to understand. The best way to test if your business is replicable is by asking yourself if you can learn how to operate your business in less than three months. You should also have several methods and systems that will ensure growth for your business.
One important thing that you must never overlook is documenting each operating procedure as well as expenses for your business. A franchisable and profitable business has to be tailored so that just about anyone can understand its inner workings without compromising your business secrets.
You have a good history
If you have already established other franchises, you have to make sure that each one of them is doing well and in your track record. For that, you also need to ensure that all the employees that you are planning to hire do not have any stains in their career and can give their hundred percent to the job. If your employees have a negative remark from their previous employer, or if they do not possess the required qualifications for the current job, they might affect the overall success of your franchise. It, therefore, becomes prudent for you to carry out a background check of your prospective employees with the help of firms like Checkr. It can help you to be sure that you have hired the right person. Remember that investors are more likely to be interested in your business if each of your other franchises is proven to have been successful. You have to ensure that your business stands out from the rest and is a worthy investment with a history of success. And your business will stand out from the rest only when you have employees, who are right for the job, help you to turn your dreams into reality. However, did you know how to attract talented individuals to your business? By offering a multitude of employee benefits! Yes, you heard it right. When the word spreads that your business cares about its employees and provides them with bonuses, lifestyle benefits, overtime pay, and health insurance, candidates with exceptional calibre will opt for the job. Most importantly, when your candidates learn that you care about employee health, both physical and mental, they will also recommend other people to go through the recruitment process. Remember that when you take care of your employees, they will take care of your business.
Affordable but profitable
Naturally, a franchise will cost quite a bit of money; however, you must make sure that both you and your investors will profit from the business despite the price. Your business has to convince people that they will profit so that they pay and invest more. Having the right technological aids and resources that help in reducing costs can make this possible. For instance, if you have a fleet business, fleet fuel consumption is one of the many things you ought to manage for cost reduction. There are fleet management solutions like what Lytx provides (try this here) that can be leveraged to monitor the mileage. Similarly, check what other technical assistance needs to be leveraged for improving your business profit. There will be instances where people will hesitate to put money into their franchise. So your job is to make sure they can trust your prices while making more profit.
Your business must be able to guarantee a return on investment. Franchises will be happy and motivated if you give them a return on their investment. Typically, a business should generate about a 15 to 20 percent return of investment for franchises. Ensure that these investors will see the money work in their favor within ample time.
Franchising is quite complicated, especially for a small business owner. Even if it may be difficult at first, you will surely see the fruits of your labor by looking into franchising your business. Any business owner will want more branches dominating the market and beating their competitors; franchising does exactly that. Consider the profit you could be making and the brand you could grow into because franchising is the future for your business.