5 Steps to Help You Expand Your Franchise Business
By Kathy Davidson
Filed under Franchise Articles
Establishing your franchise business, assuring its smooth operating and profitability is definitely a challenge. Expanding it to its optimum limits however is what many dream of since day one. How you can expand your franchise business and bring in its optimum amount of franchisee units? Here are five easy steps that can help you out through the process.
How to expand your franchise business:
1. Review your current situation. The fact that your franchise business is running smoothly with the current number of franchisees that you have doesn’t necessarily mean you are ready to expand your franchise business. Review all your documents and make sure they can hold the pressure of a larger number of units. Remember – controlling the operations of a few franchisees is absolutely not the same as controlling a big network of units. Double check all your legal documents and operational manuals and make sure there are no gaps in any of them.
2. Are you ready to compete? Once you make sure your business has the stable foundation to expand, check your competition. Having a small, local franchise business differs drastically from having a large, national or international network. Is your branding name and logos good enough? Are the products or services you sell competitive enough? Can you do better? Are your branding materials and products suitable for the new markets you are aiming at (especially if you are going international)? Getting these issues sorted out was crucial when you were launching your business and they will be crucial when you decide to expand your franchise.
3. Money matters. Money is always an issue to address. You may not need the same amount of money that you needed when you first started, however getting new business will require some additional expenses. In addition you should plan ahead any future expenses for extra office or storage space, new employees and office equipment and so on. If you don’t have enough resources to support an expansion check bank loans way in advance.
4. Set goals. Set realistic goals about how your franchise business will expand. How many new franchise units you want to have opened by the end of the month? After 3 months? By the end of the year? A goal orientated attitude will not only provide the frame for your expansion but will help you quickly review your progress. Remember – you must be realistic in your expectations and set realistic goals.
5. Push on marketing. Once you have all well thought of and prepared, push on your marketing. Your marketing efforts should be consistent with your expansion plan. Advertise in areas where you want to get new business, think of clever ways to get to your prospective partners. Good advertising strategies not always require fat marketing budgets so try to be creative and inventive rather than pour hundreds into traditional marketing. If you feel this is a hard task to do yourself, get an experienced marketer to help you set things up.
