The dilemma: You have said to yourself that you are ready to take your business to the next level. Your clients and/or customers ask you all the time if you have other locations. It is time for expansion but you’re not quite sure how to do it. So what is the best growth strategy for your business? Your choices are either to open more company-owned locations or franchising. Each has its own benefits and risks. Here are a few points to consider:
This is the best method if you ARE well-funded to open multiple locations quickly. You will:
- Need to fund each location and you will be responsible for all costs;
- Be responsible for the management & operation of each location, including hiring & training managers and employees.
- Have 100% liability for each location;
- Need to learn about the demographics for each location, so you can properly market and advertise;
- Experience slow growth & branding as this is contingent upon how much money you have to continue opening locations. You will need to open multiple locations quickly in order to achieve effective branding.
- Be challenged with employee turnover and constantly be teaching new employees how to run your business.
Franchise expansion (Franchise Your Business):
This is the best option if you are NOT funded to open multiple locations quickly. You will:
- Not have any fiduciary responsibility for each location;
- Not be responsible for hiring employees or daily operations of each location;
- Bring into your system enthusiastic entrepreneurs who will invest their time, energy and funds into opening YOUR business in other markets;
- Experience rapid expansion into markets you could not otherwise reach;
- Experience an explosion of growth resulting in quick branding because franchisees are opening locations;
- Be responsible for creating a culture of like-minded people who you have trained and continue to mentor into success and you will be getting paid for it.
Of course, everything is not always black and white. Some things just “feel” right. It is the “fire in your belly” attitude that drives you and many other successful entrepreneurs! Passion, motivation, initiative and attitude are what got you this far. Now may be the time to harness what has made you successful in your own market so you can teach others (who have a vested interest in the business) how to be successful in their market. To explore the idea of franchising your business further, Contact Us or call us anytime at 1-877-615-5177.