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Chapter Three: Where to Begin?
So you’ve carefully considered your options, and you’ve decided that franchising is for you. Your business is successful, you have a service or product that will market well in other regions, and you have the time and energy to direct franchisees. What on earth do you do now?
Well, reading this book is an excellent first step. Developing a franchise can seem an overwhelming prospect, and there are complications. You mustn’t expect a smooth ride: there will be bumps and trials along the way. However, your franchise can also be remarkably rewarding, and if you’re willing to put in the time and effort, it’s well worth the difficulties!
Sit and Think
Before you begin looking for a lawyer, doing market research, or contacting potential franchisees, there are a few questions you need to answer. Grab a pad of paper and a pen and jot down the answers to these ten questions:
1. Why do I want to expand my business?
It’s important to be able to state your goals and reasoning in a clear and lucid manner.
2. Who will benefit from my product /service?
This will direct your market research, as well as the individuals and locations you target for your franchise.
3. What is the current market for my product/ service? What do future trends indicate the market will be in five years’ time?
It’s essential that you be able to demonstrate to potential franchisees that they will have financial success with your product. The most compelling way to do so is trends, facts, and figures.
4. What is my vision for my franchise? Where do I want to be next year? In five years? In ten?
You don’t need a thoroughly articulated plan, but it’s useful to know where you’re headed. Otherwise, you’re flying blind. An idea of your goal will give you direction as you develop your franchise.
5. What am I completely unwilling to compromise on -- in other words, what conditions must be met to preserve my product’s integrity?
From the beginning, there will certainly be things that are important to you -- things you know must remain exactly how you’ve established them. Others you will be willing to compromise, or leave to the discretion of your franchisee. You can worry about those later. At this stage, what’s important is a clear sense of what you absolutely will not change.
6. What kind of person do I want running my franchise?
Get a vague idea of whom you want to work with. It can be tempting to leap at the first person that wants to purchase your franchise, but be sure this is someone you can have a working relationship with for the next several years.
7. How will I attract franchisees? What makes my franchise appealing?
Again, you will be marketing your franchise much as you market your product. In the end, your franchisees will work with and under you, but in the meantime, it’s your responsibility to attract them.
8. How much money am I willing to invest in this project?
You don’t need a definitive budget at this stage, but you should have at least an idea of how much money you have available. Working with no budget is a surefire way to have your expenses spiral out of control.
9. What is my business model? Can I put it down in written form?
Right now you are doing this in jot form; in the long run, it will become your Operations Manual. The basics of your business model must be crystal clear in your mind -- and you must be able to explain them to others!
10. Who will be in charge of managing the franchises? Will I do it myself, share the responsibility, or appoint someone within my company to handle franchise management?
If you plan to have someone else in charge of your franchises, you should bring them in immediately. That way, they can have input on the planning stages. After all, if you trust someone enough to put them in charge of the operation, you must value their advice on how that operation should run!
Take a Deep Breath and Pack Your Briefcase
Now that you have a sense of where you’re going, it’s time to get started. Organize your notes, organise your thoughts, and prepare to begin the journey!
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