Posted on: 14 February 2017Share
If you've got a successful business operation, you may be selling your goods or services as efficiently as possible to as wide a customer base as you can while taking best advantage of your company structure. You may be very efficient at your logistics, but feel as if you are 'maxed out' when it comes to your expansion plan. However, have you considered taking a major step forward and in a different direction by franchising your operation? What do you need to bear in mind before you take this big step?
Following the Lead
You may well be aware of a number of successful franchises across Australia, all of whom have been in your position and have considered how to exponentially grow their business. It can be a little overwhelming at first to think about it, but if you ask yourself some key questions first, you could be on your way.
Are You on Solid Ground?
You've got to have a really solid business structure in place before you consider asking others to pay you for your idea. Some business owners consider all kinds of options if their organisation is not doing very well. It's as if they try to expand as aggressively as possible in order to catapult a failing business forward.
You need to be able to demonstrate that your business has several years of clear profit on the books before you can enter this type of marketplace. You have to know that every potential franchisee is going to do a lot of due diligence, and unless you are squeaky clean and ready to go, you're not going to succeed.
How Portable Is Your Business?
You have to see how transportable your business actually is. Is your success based on the fact that you are in a specific area or that you cater to people who are in your area and not necessarily in others? In other words, is it possible to pick up your operation and plant it in another location half a continent away and for it to be as successful there, as well? Bear in mind also that different states and territories have different laws. You will need to do a lot of research first to make sure that you can expect a franchisee to successfully run your business in their patch.
How Sure Is Your Business Model?
How much of your business is in your head and how much of it can be readily and easily transferred to paper so that it is clearly documented? You will need a comprehensive manual as a bible for your operations. You cannot expect to be a successful franchise if you're constantly having to be hands-on by yourself, because your systems were not documented properly.
Getting Support for Your Efforts
If you are sure that other people can make a go of it by following your lead and using your special intellectual property, then by all means have a look into the process of franchising. Because it is so complicated, however, it's a good idea to get support from attorneys who are specialised in this type of commercial transaction.