Ten Reasons To Franchise a Business
Franchising your business can be an excellent way to build on a solid foundation and take things to the next level. Not convinced? Here are ten reasons to franchise a business.
Lower Risk Involved
When you’re a starting a new business there’s always going to be an element of risk involved. Not knowing if your concept will be successful takes a leap of faith. However, when you franchise a business, you’re already capitalizing on a proven model, one with the infrastructure in place to hit the ground running.
Compete With The Big Names
Often smaller independent businesses have to be content carving out their niche and taking a smaller market share. Franchising can allow you to expand your reach and compete with the more prominent names in your sector by improving your market share.
Build A Network Of Creativity
Businesses should always be looking for new ideas, fresh products, and finding ways to improve their marketing and offerings. By franchising, you can build your network of employees who understand your vision and can bring new ideas.
Access To Capital
Capital is one of the biggest barriers to the expansion and growth of any small business—this is something that can be solved when you choose to franchise a business. Franchising allows an entrepreneur or business owner to expand without the potential risks that come from debt and equity costs.
Finding good people to oversee your business properties can be a tremendous challenge—but through franchising, you can open up a broader realm of possibilities. Because your managers are also invested in the business, you will attract candidates with more extensive experience and skills, as well as those who will be fully committed to the success and vision of your business.
Quicken Your Growth
When it comes to growth—time is absolutely of the essence. If you don’t grow as quickly as possible, then your potential window of opportunity could close fast. Because franchising builds on pre-existing infrastructure and allows you to reach new and untapped markets—it can ensure you maximize your potential for growth.
Because so much of the day to day running of each franchise will be left to the owners/managers, you’ll be freed up to spend your time focusing on the big picture problems and ideals that will ultimately guide the fate of your business.
Because of the factors we’ve listed, as well as the positive perception of franchising in general terms, if you do decide to sell your business, it will be valued at a much higher number than if you’d opted not to go down the franchising route.
Increase Your Business Knowledge Base
By franchising, you can tap into a knowledge base that will help you gain the upper hand on your competitors. This could mean using local knowledge and market understanding, or the benefit of someone with experience of your sector.
Improve Your Brand Awareness
By franchising, you can amplify the effects of your marketing efforts, extending your reach and improving your overall brand awareness.