How Franchising Your Business Leads You Down Two Different Paths
by FranchiseKing, Guest Blogger
- Created: August 5, 2010, 4:09 am
Le;s say that yo-ve done the legwork tha-s needed to determine that your business is franchise material.
Yo've done a feasibility study. This study probably included;
- An honest assessment of current and possible future competitors
- Legal due diligence for name, patents, and trademarks
- A study of current market conditions for your product or service
- Market research study-for the consumer side
- Franchise industry conditions, and possible legislative changes that could hinder development of your franchise
So, your franchise concept is feasible. Congratulations! Now the work begin'
There are two distinct paths that you will be going down as a franchisor.* 'm talking marketing paths.
The first one will be how yo'll be marketing your unique products and services. If yo're using a competent franchise development firm, the'll probably be able to help you with this. They may not know everything about your business, though.
Ther's an entire library of information on marketing over at MarketingProfs.com*, a 360,000 member website of marketing experts, seasoned small business owners, and yes, newbies like you. Ther's quite a bit of free information available, and they have a paid membership area, too.
As a suggestion, use a combination of your development team's strategy and advice, and combine it with your ideas, with what you're able to learn on your own. (By on your own, I mean what you're learning by using all of the fantastic resources on marketing and advertising available 24/7 online).
The second path you'll be walking down is the more difficult one of the two; it's the franchise sales path.
On this twisty road, you'll find thousands of other franchise company executives competing for the same pool of prospective new franchise owners that you're looking to attract, and ultimately convert into your franchise owners. This is a challenging pool to swim into. Make sure you have salespeople that have sold franchises before. There are actually executive search companies that specialize in the franchise industry, and they'll probably be able to help you find sales people.
The other challenge is quality. New Zealand franchise expert Dr. Callum Floyd* writes, Creating a franchise system of quality is a complex, time consuming and expensive task. Franchisors need to excel in not just one market, but two. First is the market for franchises; second is the market for end-users of the products and services. Therefore, the franchisor must develop a business concept that is attractive to customers and profitable enough to generate sufficient returns to franchisors and franchisees over the long-term.
Well, no one said that turning your independent business into a franchise business was going to be easy. There are lots of steps to take, and lots of details to work through. You can do it.
* Non-US Government links
Here's some information on franchise rules for sellers, provided by the Federal Trade Commission
More Information, including a checklist on franchising a business from Business.gov
Find out which states you'll need to formally register your franchise with FTC.Gov
(The Franchise King, Joel Libava, is president of Franchise Selection Specialists Inc. Joel helps those interested in exploring franchise ownership all over the country find great opportunities that are a great match for them. He is frequently called on by the media for his no-spin insights on the world of franchising. You can follow Joel on his award winning, and balanced blog-The Franchise King Blog.)
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