Big businesses can make a lot of money from franchising, but what about a small business? Of course, there’s no doubt that launching a franchise requires a great deal of time and money for any business — and it’s an investment which shouldn’t be taken lightly. It will require you to not only market your franchise, but to also train franchisees thoroughly and support them throughout their business venture.
However, with the right direction and motivation, launching a franchise could be just what your business needs. The British Franchise Association reports that: “For over 20 years consecutively, around 90% of all UK franchisees reported profitability over the previous 12 months.” With this level of success at your fingertips, find out why a franchise could work for your business and what you need to get going.
The Benefits of a Franchise
If you’re looking to expand your business, perhaps to make it a national or even international brand, franchising is a great way to do this. A franchise enables you to reach out to like-minded people and provide them with all of your knowledge, skills and, most importantly, branding. With the assistance of like-minded business partners, franchise allows your brand to get bigger and cover a larger area, without losing sight of your core business goals.
But what about those who choose to work with you? Many people are becoming franchisees because it means having help and support when starting a new business. They don’t need to start from scratch, as a franchise can set up their business and help to prevent any potential pitfalls they could encounter during their first year or two.
Although the initial costs of setting up a franchise will be expensive, if you’re successful with your franchise, it can increase your profits in the long run.
How a Small Business Can Attract Franchisees
Like any business, your franchise needs a strong unique selling point (USP). Why should someone choose you instead of another franchise? Your USP simply has to answer this vital question if you want to stand out from the competition.
This can be difficult, especially if you’re up against some big brands. However, there are some effective ways to do this. Think about why somebody chooses to use or work with a small business instead of a big business. More often than not, it all comes down to personality.
One of the reasons my lawn care franchise has been successful is due to the personal approach I take. If you’re a business owner, a personal touch to get to know the person who wants to buy your franchise can have a huge impact. Demonstrating that you are passionate about career development will attract people to your business and make you stand out from the crowd. This is what can compel people to invest.
Stand out from the crowd by offering in-depth, personal training which is thorough and efficient, covering all knowledge and skills required for the job. Add something that goes above and beyond and won’t be found regularly elsewhere, such as a 24/7 support line in case of issues or emergencies.
Another important factor to consider is the price of the franchise. Obviously, creating a competitive price within your franchise industry is important; the cost is a huge factor which many people consider before investing in a franchise. Creating a slightly lower price than your competitors (without risking the profitability of your business) can be a strong way to market your franchise. Making the initial franchise fee high doesn’t mean the franchise will be successful, nor will it make you money in the long run. If you make your initial fee low, even temporarily running at a loss, but teach and train your franchisees well, they will be successful. Their quality and work and service over the medium and long-term will undo any negative short-term numbers.
What Should I Do If I Want to Franchise My Business?
If you’re considering creating a franchise for your own business, you need to do thorough research within the market, creating a budget and plan around that knowledge. These are simple essentials which need to be done before taking the leap.
It will take time and energy, and you need to realise that if your franchise isn’t successful, this could have a negative effect on the business. Build your franchise once you know that you have everything you need. Once you are, be sure to check out The British Franchise Association to give you further guidance.
Author Bio: As an expert in lawn care, Terence Nicholson is the owner of Lawnscience. Terence is passionate about helping others start their career in lawn care and created an incredibly cost-effective, quality lawn care franchise in the UK.