Setting up your own franchise may not be an easy task, but it is certainly doable as long as you don’t get lost in all the small details that need looking into. However, since these details are essential in making your franchise a success, how do you go about taking care of matters without getting overwhelmed?
The key is to simplify all the complexities by following a game plan. The steps outlined below does this for you so that you don’t overlook any critical aspects of setting up a franchise, while helping you do it in a very organized manner.
5 Steps to Setting Up Your Own Franchise:
- Evaluate your business for “franchisability” – This is the most critical step to building your own franchise because not all businesses can succeed as a franchise. Sit down on it to ensure that your business concept is saleable, easy to replicate, and will pass all legal requirements. If the answer to any of the questions is no, then go no further and look for other models of expanding your business.
- Evaluate your business’ finances – Are you really ready to expand? The best way to do this is to hire an accountant to help you with this so that you don’t have to do any number crunching and you also get a much-needed outside opinion. Evaluate your finances now as well as the expenditures that go into franchising your business, from permits to collaterals and employee trainings.
- Map out the specifics of the business model – This is where it gets pretty sticky, so I would recommend hiring a lawyer and/or business consultant with a background in the franchising process for this step. This will help ensure that you get invaluable information and that you don’t leave out any important details, from franchising fees to training requirements and just about everything you’d need to go into the contracts.
- Take care of the legal requirements – Make sure you won’t run into problems in the future by learning about ALL the legal requirements for franchising and by following all of them. If you’ll need to take a shortcut to make your franchise happen, don’t do it!
- Hire more help – As you can see above, I’ve already recommended getting the help of accountants, business consultants and lawyers, but you’ll need even more help for regular employees to hold key positions such as trainers, marketing heads, and more. The bigger your vision is, the more people you’ll need to help you make it a success.
Isaac Morris is a professional blogger that provides tips and information on franchise opportunities and investments. He writes for FranchiseExpo.com, the place to find franchise opportunities online.