The introduction of
franchising over the last
50 years has provided many businesses owners with a fast and effective means of
leveraging their business. The idea of
using other people’s time and money to expand your own business in today’s
economic climate is still a very attractive proposition to a business owner.
One thing we’ve learned at The Infinite Group over the years is that a
step-by-step approach is
vital. We’ve devised a simple and yet extremely effective method of taking a
business to franchise. Although your business is unique the foundations for
success are rooted in a common process. Whether you have an existing system or
are just starting franchising, there are certain areas that need to be covered.
The Infinite
Group step by step franchise process includes:
·
Identifying the opportunity
·
Writing the operations manual “your way of doing business”
·
Franchisee recruitment
·
Franchisee induction and training
·
Controlled growth and support
Statistics show that where roughly
50% of new businesses fail in the first year 95% of franchise businesses
succeed. Indeed these figures are reflected in the longer term 5 year figures
too. The upfront cost of the know-how or the ‘system’ fades into oblivion in
light of this statistic alone.
1.
£13.4 billion- UK Franchise contribution to the UK
economy 2011-12
2.
594,000- The number of people working in the UK
franchise industry
3.
14% Growth and job creation by new franchise start
ups 2011-12
Source
NatWest and BFA
In
economically challenged times, franchisee sales tend to increase. The common
denominator for a prospect looking to buy a franchise is always life-change.
This is often coupled with a general dissatisfaction at their employers and of
course, severance payments can lead to rich opportunities for the franchisor.
The key
element for any business looking to franchise is: can everyone make some money?
If the answer is no, then it is doomed before the outset. Additionally and
often omitted is the importance of the franchisor being properly rewarded!
So, to answer the question: It’s a fantastic way to build a business
leveraging other people’s time and money to build your company and brand but tread
lightly and don’t take your eye off the cash ball. And ensure you have someone who understands the
pitfalls to ensure you get off to the best possible start and not only a
business owner but as a franchisor! Good luck.