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.