Franchising a business is one way of expanding and growing one’s business network and investment. More and more business owners consider this as it does not entail a lot of capital expenditure, but the returns can be very favorable.
In its My Own Business Portal, Santa Clara University discussed the many reasons why you should considering franchising your business. In its article it highlighted that franchising speeds up expansion, helps acquire capital for business growth, and helps the franchisor avoid problems relating to human resource management.
“A well-executed franchise program can catapult a sound business concept into a worldwide organization. 7-Eleven© operates over 56,000 stores in 18 countries. Subway© is operating over 44,000 shops in111 countries. If you are operating a business with multiple locations you may have a good model for franchising. Growth can be accomplished by utilizing the capital and motivated management provided by franchises. But franchising can be a double-edged sword. Mistakes made in a faulty franchising program can turn a successful business into a disaster.”
Read the rest of the article here.
Franchise Your Business
The Canadian Government meantime came up with a comprehensive guide for entrepreneurs who are considering to expand their business through franchising.
“When you create more distribution points for your goods or services by developing franchises, your business will gain market share. Because your franchisees will have invested their own money and efforts into your brand, they will be committed to working towards mutual success and growth.”
The whole comprehensive guide can be found here.
What is in it for Small Business Operators
SME South Africa also endeavored to explain why you should consider franchising your business. In its article, it discussed the pros and cons of being a franchisor, even from small entrepreneurs. Franchise a company
“Owner Operator – An owner operator who is at risk will always outperform an employee. Very often the franchisee has invested his life savings in the business and must make it work! – Reduced risk – You will not end up with branches running at a loss. We often get companies wanting to franchise their loss making branches – this is not possible – however the chances are these branches would have been profitable had they been franchised.”
Read the rest of the advantages that they discussed here.
Franchising one’s business is a good option for business owners, who want to speed up expansion with careful planning.