Franchising is one of the best marketing methods for small businesses to get scaled and duplicated easily. Franchising your business will help you to get finances for your business. These finances will help combat the biggest hurdles that you face while expanding your business. However, smaller hurdles can be easily met with the help of short term loans like payday loans. If you are willing to expand your business but lacking the finances then you can go for franchising.
How to franchise
Franchising means selling franchise rights to individual investors in order to expand your business. The individual investors make use of your company’s name and operating system. In order to franchise your small business you must:
Identify good franchise consultant: in order to maximise the chances of franchising, you need to find the best consultant and tell them your plan. As the consultants have experience they can explain all the ins and outs of your plan.
Identify the best Franchise Attorney: in order to sell out the franchise rights to individuals you need to prepare legal documents and offer them to the individuals. For preparing these documents you may require a well-qualified attorney who has experience in doing so.
Marketing: you have prepared everything to franchise your business. Now you need to convince the investors to become your franchisees. Some consultants help you in doing this so, you can directly approach the consultants or do it by yourself. If you are doing it on your own you need to learn how to pitch yourself in the market place.
Why to franchise:
Franchising is very advantageous when compared to the traditional methods of expanding your business. It offers a number of advantages which are worth considering:
- Franchising allows you to spread the risk of business to individual investors. Investors put their own money and equity to run the business
- Franchising allows you to increase the value of your business. if you don’t franchise your business then earning more profits on business will be low due to risks
- If you franchise your business then there are more chances for you to get multiple small business loans from the government under guaranteed loan programmes
- You never want to give up something which you have built and developed, so by franchising your business you don’t need to give up the identity of your business and you can stay as operating head by selling out the pieces as franchises
So, sell out your business franchise rights to individual investors who can develop your business; this will allow you to expand your business. You should also be careful while choosing the investors as some are incapable of developing your business. So, assess the franchising potential of your business and choose the best investors who have best skills and management experience to develop the business.