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Franchising is one of the fastest growing trends in business these days. Most business owners franchise because it has the faster growth margin. However, franchising is not for everyone. When planning to offer your business for franchise, here are the things that you must consider:
- Clear grasp of concept. While business owners usually run on intuition, you have to make sure that your franchisees must have a clear sight of your plan. If you do not have a clear concept of your business, do not expect your franchisees to understand your “plans” or lack of it. Weather your core business model is selling phone cases, or something as complex as modified drones, you need to have a clear understanding of your corporate goals.
- Be careful in picking your franchisees. No, you can’t just sell franchise to just about anyone. It is crucial to recruit the right franchisees. In addition to being business-minded, your franchisee should understand you and vice versa.
- Don’t be cheap and lazy when it comes to training. Both the franchisor and franchisee will benefit from solid training. Basically, trainings will make the franchisee to better understand the ins and outs of the operation. It also makes sure that the employees learn the right skills. Solid training also helps the franchisor to get the business off the right start. Training also helps minimize errors and saves time and money as well.
- Keep the business flow under control. It is crucial for the franchisor to keep the flow of business under control. The franchisor must be engaged in several aspects of the operation, such as accounting software, promotional campaigns, and personnel policies, to name a few.
- As the franchisor, you should have a standard that your franchisees follow. Optimal profitability will be highly possible if the franchisees duplicate your operational system. Spend time studying and drafting the systems that yield successful results. As a franchisor, you are not only selling the service or product, but the system for success as well.