No doubt risk is scary. However, if you are like most business owners the risks you have taken so far have made you stronger. In our experience, there is no such thing as a business owner that does not take risks. While some risks are a “sure bet” most of the time they are unpredictable. More than likely you scrutinize a decision and look at all possible outcomes when faced with the idea of taking an unpredictable risk. While franchising your business does not fall into the “sure bet” category it is not totally unpredictable. So it is common (and expected) that you ask yourself, “is it risky to franchise my business?”
“Progress always involves risk. You cannot steal second base and keep your foot on first.” — Fredrick Wilcox
So Is it Risky to Franchise?
When you started your business there was nobody that gave you the green light, you took a chance. Likewise, franchising your business is a calculated risk. It is a chance that other entrepreneurs are going to find your business attractive enough and the system you put together comprehensive enough to want to invest their time, money and resources into your brand (more on why people invest in a brand and why people buy a franchise). Even when that happens you cannot guarantee their success because there are too many variables (for example: how they run their business, how they manage money, how much they advertise and market, etc.). So sure it is risky to franchise, but it is a calculated risk likely worth taking.
Ask Yourself These Questions
There is no guarantee that you will be successful at franchising but it is easy to find success in franchising. There are thousands of businesses who have been and continue to be successful at franchising. Their success is attributed to not only the system they created but also their execution (check out our article on how to be successful at franchising). The only guarantee you have is yourself and your team. So ask yourself these questions:
- Is there a demand for what service you perform or product you provide?
- How strong is the business model you created?
- Is your business and the systems you created sustainable?
- Can you motivate a team?
- Can you teach someone else how to motivate a team?
- What ideas do you have to keep your brand alive in the marketplace?
- Do you have patience to teach others how to become business owners?
- Are you willing to invest your time, your money and your resources into a venture that is contingent upon other people?
Also ask yourself are you a control freak? Is your business successful because you touch every element of it and you feel you have to touch every element of it? Or is it successful because you’ve taught others how to do certain tasks and you can delegate trusting others to execute such tasks effectively (read about control freaks and franchising).
While it is not possible to guarantee if you will be successful at franchising there are many things to explore as you think about going down this path. This is where we come into the picture (more about us and The Franchise Maker). Call us directly at 1-877-615-5177. We are committed to help you determine if franchising makes sense and Dave (our CEO) takes it one step further. He will ask the tough questions and compare you and your business up against the attributes of successful franchising companies to see if you have what it takes that historically leads to franchising success. You may be surprised.
- How to Know if You Should Franchise
- Dangers of Franchising Before You are Ready
- Mistakes to Avoid when Franchising
- Steps to Franchising
- Habits of Successful Franchise Systems
- Things to Consider When Franchising
