Wednesday, December 2, 2015

Headed toward franchising

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     Franchising can be a way to grow your small business. You get established and then you offer to show others the value of buying into the franchising operation you want to create.

     It's a big decision and it's not right for every business. To set up to franchise your business idea takes careful thinking, planning and execution. You are headed toward a different business built on the foundation of the small business you have created.

     Example: Antwan started his own business delivering packages. He delivered pizzas, auto parts, groceries and other items to a local area. Lots of competition taught him to be lean and mean--he didn't worry about Fedex and UPS. His business model was based on same-day, quick deliveries. His dream grew to be bigger than the local towns he served. All calls for services came into Antwan's office, and he hired a delivery person in an adjacent town to handle a wider area. When one of his people suddenly quit, Antwan scrambled to find a replacement. One applicant wanted more than to be a driver--she wanted to have a business of her own. Antwan set up the framework for offering her a franchise and a territory of her own. Today Antwan has sold several franchises in his state. He is now in a very different business--no longer does he deliver packages himself. 

     This is the business side of setting up a franchise. There is also a legal side. You'll need a specialist to lead you through the process. There are strict laws governing franchises. 

     The most critical part in the beginning is your existing business. You must have a going business, and you must have lots of written materials to guide the other people who buy your franchise. 

     A big part of growing your business into a franchised operation is what it will do to you. To run a franchise is quite different than running the small business you have created. Make sure you are comfortable with this. 

     Every business needs a business plan. If you decide that franchising is right for you, do a new business plan. It's where you meet the marketplace. 

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