Is it Difficult To Franchise A Business?
Franchising is a huge step for any business—and one that can seem a little daunting. We understand that a lot of people feel like franchising a business is a difficult and costly endeavour. This simply isn’t true—franchising is easier than you think and can help your business grow and prosper. There are a few factors to consider first though—these are the areas that could make it difficult to franchise a business.
Is The Business Model Reproducible?
There are a number of factors that could play into a business model not being reproducible:
- The business could be reliant on the skills and qualities of the owner and staff, none of whom will be working at the franchise locations
- The services offered can’t be scaled up, for example if you offer food made from locally grown ingredients, this may be difficult to reproduce without establishing connections in other locations first
- The business could be location-dependent, or reliant on a local client base that can’t be replicated
If the success of your model can’t be reproduced easily in another location—then franchising could prove difficult. However, there is a solution. Franchisees don’t have to rely on the same business model, you could find a way to offer your products or services in a different way depending on your franchise location.
Can You Source The Right People To Run Your Franchise?
This is perhaps one of the biggest hurdles for any franchise model—you’re trusting other people to manage and run the day-to-day operations of a business in your name—and you need to make sure they’re up to the task. One solution is to develop a training program, one that allows you to cultivate the exact skills and qualities you need. Investing in recruitment can also help navigate this difficulty.
Do You Have Sufficient Capital?
There is no getting around it—expanding your business to a franchise model requires significant capital. Especially in the early stages. You need to make sure your business has the capital stored up to survive any early losses, and to fund the franchising infrastructure. One potential solution, however, can come in the form of loans—banks will view franchising as a more secure investment than a start-up business.
As you can see—there are challenges that can make franchising a business difficult but they aren’t insurmountable. It’s an achievable goal that is probably easier than you think.
One of the best ways to make franchising easier is to call in the experts—Lime Licensing have been providing advice and support to franchises for over a decade now, and we know exactly how to help your business grow. To find out more, contact us today.