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Strategies to expand the business through franchisee

Strategies to expand the business through franchisee

Undoubtedly, franchising is today one of the few systems of doing business that allow companies to grow in short periods. All the figures and data regarding the franchise system reflect continued growth, even in the most challenging times. However, the bottom line is that this is a very important sector of activity. It is becoming more and more powerful and is present in all areas of the economy and business. For all this, do not miss the opportunity to franchise.

However, structuring a franchise system requires high commitment from the owners and the support of a highly qualified human team. It is a project with different stages of development:

Develop good strategic planning 

Strategic planning is essential for anyone wanting to expand the business through franchising. Bearing in mind that this is an in-depth analysis of the brand and it’s functioning, it is always important to look at the company from different angles and identify the best way to position itself in the market. When it comes to increasing operations, it is necessary to have well-defined goals and objectives, creating actions aimed at achieving them. Knowing how far your franchise plans to go and what results from it intends to achieve is fundamental to creating a successful strategy.

Careful branding 

Taking care of the positioning of your brand is a task that cannot be neglected. And that requires careful branding. Remember that branding is a set of strategies that concerns the way that customers see your company. It is necessary to use this concept when defining actions that contribute to maintaining the positive look already achieved. Expanding business through franchises is a possibility to expand that power. But, for this to happen, franchisees must develop a job capable of generating the expected results. 

A franchise branding requires constant monitoring of quality indicators and customer experience. The reflection of this is what will direct the actions to improve and maintain what is working. In franchising, there is a "loan" of the brand for franchisees. This reality reinforces the importance of well-done branding, in addition to management with defined standards and easy to be replicated.

Know all the variables of the market in depth

Starting a business is not immediate, as it requires the analysis and evaluation of many variables that will influence the performance of the activity. It means deepening the knowledge of the market, from the total number of inhabitants, the average income, the busiest streets, the average age of the population, or the seasons of the year with the highest consumption. 

All of these parameters must be weighed across all available locations to determine the best option. The greater the knowledge of your target audience, the greater are your chances of having significant benefits in the future. But that does not mean that they arrive immediately. You must arm yourself with patience and be aware that at the beginning, you have to make a significant effort and that the benefits will come. 

Search for the right franchisees

 The franchise is, above all, a partnership between entrepreneurs, which must be guided by a well-aligned work pattern and the correct execution of determined tasks. The fulfillment of this demand becomes easier when the choice of franchisees is correct. Many companies are considered extremely strict in the franchisee selection process - which is quite justified, considering the weight that such a choice has for the brand as a whole.

While dealing with the franchisees' dream of having their own business and need to enable them to do it successfully, the franchise needs professionals who wear the shirt and can maintain the standard of excellence by which the company is known. This is not an easy task. Some tips for doing well in the endeavor are: 

  • Precisely define the ideal type of franchisee
  • Divide the process into steps (which will be able to filter stakeholders).

Automate processes and optimize time 

The amount of work a franchisor does when managing a network is a lot. So, in addition to having a team that helps you keep the company in compliance, automating processes is something that is increasingly necessary, especially in large networks. By automating processes, we include improving communication channels with suppliers, as well as optimizing the use of products and machines in stores. These measures ease the work of everyone in the franchise.

Wrapping up

If you already have your own business and they are prospering a lot and giving you a lot of profits, the idea of ??expanding your model in franchises or even carrying out a traditional expansion process appears as an obvious alternative. However, these may not be the best options, as they involve a lot of effort and capital demand, which will cause a delay in profits.

On the other hand, instead of creating your franchise, you can simply buy a license from another one that is already well established in the market. Certainly, the costs will be far less than expanding your current business. Besides, by choosing this option, you can start to learn from an experienced franchisor how to create a successful franchise and, who knows, one day, you will be able to apply this model in your initial business.