Once you’ve successfully established your business, the next logical step to take is to scale it up. Franchising is an excellent business strategy for acquiring new customers through distribution. However, vetting and securing the right vendors with a deep understanding of state requirements will take a bit of work. To ensure that you’re taking the right steps towards effective franchising, be sure to accomplish the following.
Establish Specific Goals With a Timeline
As with any new venture, you need to set specific goals that are realistically achievable within a given timeframe. Treat this as similar to a business roadmap. Initial goals that you want to set a timeframe for are:
Make Sure You Have Sufficient Capital
How much capital you’re able to afford upfront can determine your ability to become efficiently operational and the financial performance of your initial franchises. Remember, starting a franchise will require an initial investment of up to $300,000 in the first year, and anywhere between $1 million to $2 million in the following five to ten. If you can keep expenses running lower than your revenue, chances are you’ll be able to scale at a much quicker rate.
Create a More Simplified Business Model
A business model that is too complex can make it difficult to achieve strong unit-level economics. Full-service restaurants or retail shops with several branches, for example, can be notoriously difficult to operate. However, incorporating the right tools and technology can better equip your business to scale. Project management software and inventory tools can help streamline your processes and achieve financial targets for just a small upfront cost.
Assemble a Franchise Leadership Team
As you set up new franchises, your top priority shifts from focusing on your initial existing business to making sure your other branches are thriving. As you scale up, placing all the responsibility on yourself becomes unsustainable. You can assign a leadership team to:
Intelligently Award Franchise Agreements
You can’t simply hand out your first franchises to anyone who promises to deliver results. After all, this is an opportunity for your business to develop a powerful franchise infrastructure and validate your brand for future investors. Scout candidates with a strong business acumen, who already work within your industry, and are confident in your business as a whole.
To properly execute your business model, it’s important that your franchisees have everything they need from the get-go. These include standardized processes and the proper technology to ensure that all your units and assets are accounted for. When communicating with your franchise leaders, practice active listening, and use their first-hand reports and data to improve your processes as your business grows.
Scaling up with additional franchises starts with fostering a deep understanding of the current state of your business. At Optamark Digital, we run a full audit of your business and help you develop a fully-functional marketing plan and strategy based on your strengths. Contact us today for marketing solutions that are trackable and scalable!
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