Franchising isn’t just about the big names and the global brands—it can be a tremendously effective way for businesses of all sizes to grow and branch out into new markets. However, it’s not something that is going to be well-suited to every business. This is why it’s important to have as much information as possible before you make the decision to franchise a business. To help you out—here are some of the advantages and disadvantages of franchising a business.
The Advantages Of Franchising A Business
A Path To Growth
Once your business has reached a certain level of success—you’re going to look to capitalize on that with growth strategies. But for some businesses this can be difficult, leaving business owners faced with what looks like an insurmountable plateau. Franchising your business can be a cost-effective way of achieving that growth.
Because franchisees are in charge of managing and overseeing their franchise—there is no additional burden on you as the owner when it comes to managing and operating. This is especially true if you hire an effective franchise manager—someone who brings ideas, skills, and knowledge to the table—becoming an essential part of the growth of your business.
Build Your Brand
One of the essential keys to the growth of any business is brand awareness—the more people who are aware of your brand identity and unique selling points, the larger your potential customer base is. By franchising into new locations you will be increasing the reach of your marketing and branding efforts.
Improve Your Resources
Franchising your business will enable you to draw on a larger wealth of resources in terms of growing your business. There are two key areas in which this will be especially helpful. The first is purchasing power—with more security and profit you’ll be able to access better equipment and other resources. The second is idea generation—new ideas are the lifeblood of business growth, and through your franchises, you’ll be able to test new ideas and pilot schemes, as well as take on the suggestions of your franchise managers.
The Disadvantages Of Franchising
It’s Not An Easy Fix
Franchising is a great way to grow your business—but only from a stable platform. It is not a means to inject capital and resources into a business that is failing to generate profit already.
We understand how important businesses are to their owners—not just on a financial level, but also an emotional and personal level. Which is why being in control of their business and its success is something that owners can prize. With franchising, you will be turning the operation of an element of your business—one with your branding and products—almost entirely to the franchise manager.
When it comes to franchising a business there’s no substitute for expert advice. By being able to rely on people with experience and proven track record of success in facilitating franchises you’re increasing your chances of success. To find out how we can do just that for your business—contact us today.