7 signs that show your business is ready to become a franchise.
If you own a successful business, you may have considered the benefits of starting your own franchise and growing your brand. It can be hard, however, to know when the right time to franchise your business is. Below we have outlined 7 signs that may suggest your business is ready to become a franchise.
1. You are not dependant on the location of your business
One of the key factors that make a franchise successful is that is must be easily replicated. You must consider if your business would be just as successful if it was in a different location, and was run by different staff. For example, if a café is situated close to a school and receives a rush of service after students are released, a lot of the success of the business may be attributed to the location of the café. Similarly, if a shop is run by an individual who is very social and active in their local community, the success of the shop may be due to the popularity and networking skills of the owner.
If you can confidently state that your business model would work in a new location, with a new group of staff, it is a good sign that your business is ready to become a franchise.
2. You can clearly define your brand
When selling your business as a franchise, you must be clearly able to describe the concept, purpose and atmosphere of your business. You should be able to clearly define what your business is and why your business is successful. In order for a new franchise to be successful, they must have a solid blueprint from a franchisor and there must be no confusion about any element of the business.
If you are unable to clearly define how your business works and what your USPs are, start by drawing a brainstorm filled with the services and goals of your brand. Split the information on your brainstorm into small sections and try to summarise these sections as succinctly as possible. This exercise should leave you with a distilled blueprint of your business.
3. There is excess demand for your business
Do you find yourself constantly having to turn away customers or reject orders because you do not have the time, resources or capacity to meet the demand there is for your business? This is a good sign that your business is ready to become a franchise. It is a further positive sign if you often have customers visit your store who have travelled a significant distance to get to your business as this suggests there is a demand for your business in other locations.
If, on the other hand, cash flow in your business is fairly limited and you struggle to meet your monthly targets, now may not be the right time to become a franchise.
4. You have strong communication skills and strong determination
As a business owner, you may pride yourself on your ability to manage your employees and communicate effectively with your partners, suppliers and staff. Even for seasoned business owners, becoming a franchise can be overwhelming as a business owner must learn how to communicate with other franchises and build a unified franchise system in order for their franchisees to be successful.
A business owner does not necessarily have to have the business and communication skills required to become a successful franchisor initially, but they must be willing to learn and partner with individuals who have different expertise. Above all, a potential franchisor must be prepared for potential challenges ahead but we willing to overcome them.
5. Your business finances are consistent
Look over the financial records of your business from the last few years and determine whether or not your finances have been consistent. It is important you have a stable financial record, as this will allow you to accurately calculate the start-up costs of a franchise and give you a realistic expectation of what a franchise of your company may be able to earn.
If you have a predominately seasonal business, such as selling Christmas gifts, this does not make your business unstable, but it does mean that you must prepare potential franchisees for periods of inactivity or quiet times.
6. You are ready to release some control over your brand
For many business owners, their business is their baby. When you franchise a business UK, you have to trust the name, branding and model of your business to another individual, which some business owners who like to micromanage may find difficult. It is important a business owner is prepared to give up some control over their brand and trust their business model to a potential stranger.
It is unlikely two franchises will look like exact carbon copies of one another, a business owner must be prepared to accept this and allow a franchisee to add their own spin or twist to a business, such as altering the décor of the franchise slightly.
7. You have the support of franchise consultants
Expert franchise consultants will not allow you to pursue turning your business into a franchise if they do not believe your business is ready. It is, therefore, a positive sign if a franchise consultancy believes you are ready to become a franchise and offers their support as you transition your business to the franchise model.
Franchises have a success rate of 90%, whereas independent start-ups have a success rate of 15% which is perhaps due to the expert consultancy and support services available to franchisors and franchisees.
Get in touch with Franchise Consultants UK today
If you would like to learn more about turning your business into a franchise, do not hesitate to contact Infinity Business Growth Network Franchise Consultants UK today. We can help businesses become a franchise and help them secure expert and passionate franchisees for their business. If you have any questions about becoming a franchise, do not hesitate to contact a member of the IBGN team today.