Franchising can be a very effective way of expanding and growing your business quickly. For a well-run business, with systems and processes in place, franchising can provide benefits and satisfaction to both parties.
When is your business ready to franchise?
• You must be able to prove the success of your concept. The business needs to be making a healthy and predictable profit.
• Having a positive cash flow without the key/critical staff being present. Having the right management structure is a must.
• Your business needs to be unique.
• Your business has a predictable operations procedure with great systems. This may be achieved by having accessible ‘how to manuals’ for staff.
• Strong culture of open and honest communication within the business.
Prior to any business franchising, they must be able to define their target market. If you can answer the following six questions, you have an adequately defined target market.
1. Who is the person that your organisation wishes to cater for? You must be able to provide details (e.g. age, where they live, relationship status etc.).
2. Where is the biggest concentration of this group?
3. What is the problem that you solve for them?
4. When will they need your product or service? How often will they need it?
5. Why will they choose you over the alternatives?
6. How do you expect them to do business with you? How will they communicate with you? How will you know they are interested in your product or services?
If you require any further information or assistance in regards to franchising your business, contact our team of lawyers and accountants at The Quinn Group on (02) 9223 9166 or submit an online enquiry.