Once your business has overcome the financial hurdles of starting up and is earning revenue and engaging its target market, the next question is how to expand it. Grow your business means reaching new customers and engaging with target demographics in new and innovative ways. Depending on your location and financial situation, turning your small business into a franchise may be the best way to expand and make more money.
More Financial Support
Taking your business in the direction of franchise development means selling part of your business to another owner. While this may seem like you’re giving up control, sharing the costs and risks of expanding your business can ease your financial burden and make your business more valuable. Taking on a franchisee, who will contribute their own money to the business as well as pay franchising fees, gives you more money to invest back into your operation.
Ease of Operation
Handing off part of your business to someone else also substantially reduces your workload. Your business will be able to bring in more money, attract more customers and increase the viability of your brand without you having to manage each location. Expanding alone would leave you responsible for staffing each location and keeping track of day-to-day transactions. By franchising, you can pass these responsibilities on to the franchisee, allowing you greater freedom and flexibility to manage your entire business.
Business expansion is always risky, but if you want the financial security and increased flexibility of working with another businessperson, consider franchising your business. As your brand recognition and loyalty increase, you may find yourself using franchises to expand your business more rapidly than you otherwise would. Each new franchisee would give you access to a new market, as well as mitigate the costs of expanding your business further.