With the company store doing well, and the desire to expand your business, you will likely consider self-expansion as your initial method for growth.
It only makes sense, as your managing and funding the growth of your business puts you in complete control, and makes you the primary benefactor of the value increases along the way. Expanding on your own, however, has its dark side. First, you and you alone (or with secured or equity shared capital) will have to fund the entire costs of expansion. Depending on your business model, expanding by only a few units could amount to millions of dollars in new capital investment. Further, expansion urges usually come at a time when owners are just beginning to feel the positive cash flow effects of their successful ventures, so facing the prospect of significant reinvestment and sacrifice cannot come at a worse time. Aside from the capital expense, let us not disregard the challenges associated with recruiting, hiring, training and retaining high-quality management and staff to operate the additional locations developed. Remember, in most cases, there is only one owner, and taking on any material expansion strategy of your own means that you are going to be faced with the senior management and operational aspects associated with each location. Your ability to hire and keep good employees will be critical to your self- expansion success and if doing so is outside your normal comfort zone, then it is recommended that you either defer this skill to another executive or select an alternate expansion method. With money and management discussed, there still remains a fairly daunting list of tasks and responsibilities facing the owner that chooses to expand independently. They include, site selection and real estate or lease negotiation and financing, general administration, public relations, advertising and crisis management. As each location is being developed and comes online, the time commitment and task list will grow accordingly for the owner. As you can see, considering the money, time and risks, self-expansion is a significant achievement for any business owner. Franchising, by contrast, enables owners to leverage the capital and time resources of their franchise “owners” and thereby expand their brand while mitigating the total risks to their capital, their current business assets, and their calendars. If franchising is right for you, contact us and see how we can help to make this transition more seamless. The post Franchising a Business appeared first on The Franchise Builders.
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The process of developing and also applying a franchise system calls for specialized attention and emphasis from people that have remained in business of franchising as well as licensing as well as collaborated with companies making the change from a company had chain into that of a independent distribution design.
When evaluating franchise consultants to deal with a business making the transition into the independent distribution model, it is necessary to deal with consultants that have real experience in the area of franchise advancement. This is a vital element of assessing a franchise consultant because they need to have experience collaborating with new companies in this area from the ground up. It is an incredibly different ball of duties and also experience when a person has dealt with a fully grown and also steady franchise system that has remained in business for many years as opposed to somebody who deals with business making the primary step into the world of independent distribution versions. Franchise Consultants come in all shapes and sizes. There are large firms that have actually beened around for years dealing with much of the sectors most successful companies. These companies, while skilled and well-decorated have the tendency to be less alert to smaller companies and will certainly not provide details, concentrated on smaller sized groups entering the franchise area. There are additionally franchise consultants who have actually operated in the field and also have actually held positions with large, recognized firms. They take their experience to the field of franchising and also offer consulting services to brand-new or existing franchisors. These consultants are a good fit for existing franchise companies that need support or guidance in certain elements of their system's administration. There are also record development consultants that create paperwork to be utilized for starting a franchise organization. These organizations supply documents needed to offer a franchise in a design template format that can be become fit any kind of brand-new version. These organizations generally give little support and also consultative guidance for a brand-new creating company, but do provide the paperwork at a cut rate price. There are likewise franchise consultants in the area that have smaller outfits that concentrate on the advancement procedure with a small group of concentrated consultants that work in tandem with a brand-new franchise company. The advantage to these teams is usually that the financial investment is more in accordance with just what an expanding firm could afford as well as typically these companies will certainly also assist in sales and new business development for finding and closing sales. For a small company getting in the area of franchising, these normally supply the most engaging opportunities being that they will certainly be available as well as much more very closely connected to the success of the new growth program. There are many choices and opportunities for different kind of consultants. The integral part is to have in depth discussions as well as research study on each to ensure that you decide based upon your requirements and choices. Franchise Consultants have a large range of services they can supply and need to provide to a brand-new business, personalities, designs and also choices need to be thought about before making the transition right into the sector. |
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