So your business has been booming for the past years, your line graphs moving up, and everything’s been sailing smoothly. The next thing you’re probably thinking is “How can I franchise my business?” This may seem like the next best thing to do – to expand and to bring investors in. But just like any other business endeavor, you just can’t jump into it without careful planning. Here are three things you should do before franchising your business.
1. Do Your Research
There’s a lot of things you’ll have to research on before doing any pre-franchise work. One example is how your business may thrive in other locations or other countries. Are your products suitable for different types of audiences? Is the market or your industry growing or is it facing any challenges at the moment? Is it the right time for your business to expand?
2. Check Your Financials
This isn’t just about knowing if you have the money. You have to take into account the fact that there will be expenses for new locations, new staff, and new equipment. You’ll also need to hire a lawyer who can handle all the paperwork associated with franchising. You have to make sure that all the paperwork is correct and that you’re in the right position to franchise your business.
3. Re-assess Your Business Model
Review your business model. Can it be easily duplicated without complications? Are your business rules set in stone and easy to implement? Are there things you might want to change before actually being open for franchising?
Remember that you’ll be dealing with different types of people to run your business in different locations. And it’s a possibility that they won’t run it like you. Keep an open mind and stay on top of things much as you can. Be sure to lay down the rules before putting your business in the market. You’ll never know when you can be the next McDonald’s.