Another route to business growth?
Looking to grow your business but concerned about the financial risk in these uncertain times?
Franchising could be the answer, according to David Nelson, director and co-founder of The Business Clinic, which specialises in supporting companies on their franchising journey.
He says: “In these uncertain times successful businesses are still looking to grow. Franchising the business can offer them an alternative, lower risk route without significant investment in property or people.
“One of the big benefits of taking the franchising route is that it reduces the financial risk involved in funding growth. It’s a factor that we’re seeing more and more with our clients.
“It also increases the value of your business, while taking it to that next level and making it more attractive to potential funders, investors or purchasers. Franchising is a way to boost revenue and profits.”
He adds: “The appetite is also there from potential franchisees. The sector in the UK is going from strength-to-strength, with increasing numbers of people with money to invest looking at it as a way to successful business ownership.
“One of the main reasons individuals opt to buy a franchise rather than starting their own business is because they have a better track record of success.
“Building a successful franchise model also helps others to achieve their dream of running a business. You will have motivated partners sharing your vision and growing with you.”
There are around 48,000 franchise businesses in the UK and the sector contributes around £17bn to the economy.
Based in Chorley, The Business Clinic team has worked with companies in sectors ranging from home cleaning to school sports provision, to support them as they embark on their franchising journey.
At the very start of the process, The Business Clinic will produce a detailed feasibility study to uncover if franchising is the right route for a company.
If it is, its experts will work with the business to make sure it has got the right financial structure in place to make franchising a success.
David adds: “We also work with business on their franchise model and help them to put the right support systems and structures in place for their franchisees to be successful. And we will help them recruit the right people to succeed.”
Franchising checklist
Here are some of the opening questions The Business Clinic says owners looking to franchise should be asking themselves.
David says: “These questions can help you initially to decide if franchising is the right route for your business growth. If you are interested and want to understand more, we are happy to discuss things with you at a no-obligation meeting.”
- Is my business profitable?
Franchising is a business model replicating something that already exists. A successful core operation is vital. The business must be working and working well.
- Could my business serve its customers through a network of local branches and operations?
We want you to be thinking about the benefits a multi-business operation can bring from your brand. How might this be of benefit to the industry?
- Do I have something that is different that I can bring to the marketplace?
Here we want you to think about whether your business has a unique USP and/or way of working that will separate from others in the current marketplace.
- Can I document in detail the way that my business operates so that it can be taught easily to others?
Here we want you to ask yourself and be honest about the systems and processes you have in place. Are they streamlined and laid out, so instructions are easy to follow?
- Is the way that I work and operate easily transferable? Or is my business based on my personality rather than processes?
With this question, we want you to consider how reliant your business is on you being involved and hands-on within it. What would happen if you started to take more of a back seat to regular operations?
- Have I got the financial and physical resources to invest in successful franchise development?
This question isn’t designed to put you off but rather ensure you know what kind of investment you will need to put in to achieve an established and successful franchise brand.
- Am I ready for my business role to change from business operator to franchisor?
This is something only you, the business founder/director can answer and needs to be a decision you are ready for as they couldn’t be more different from one another.
- How do I feel about fully sharing the way my business operates and giving other people the tools to run it at a local level?
If your business model is something truly unique and something no other business is doing, we can understand why some people want to keep certain aspects hidden but if you truly want your company to grow in this way it is essential to be open and honest with the inner workings so your franchisees have the best chance of success and equally for you franchise brand.
- Am I excited about the thought of other people being successful doing what I have done? Do I want to share that route map to success with others?
Similar to question 8 above, are you ready to open your business up to the world in order to create that legacy for your brand?
To contact the Business Clinic team visit www.thebusinessclinic.org or call David on 01772 367 367
