How to Franchise a Business

How to Franchise a Business

First recognizing the jungle is how to franchise a business.

First recognizing the jungle is how to franchise a business.

Truth 1. Most successful entrepreneurs ask how to franchise a business.

Asking how to franchise a business might be the most common inquiry among successful entrepreneurs. Why? First and foremost, the whole idea of growth through franchising is fascinating to the entrepreneur. And why shouldn’t it be?  The successful entrepreneur wants to continue growing, yet that person has struggled long and hard to be successful and the idea of repeating the same effort is not welcome. So, the psychology of growth leads to the question of how to franchise a business versus doing it all over again themselves. If growth is the objective, and yet the idea of years more at hard labor is repulsive, then of course franchising makes sense; at least initially.

Truth 2. Knowing how to franchise a business is not a signal to commit.

Another common thread that runs through most entrepreneurs is that of speed. That doesn’t mean recklessness, just the drive to get something done once a decision is made. Asking how to franchise a business and then deciding IF the business should be franchised are two entirely different issues. There is a dangerous crossing point where the old adage of ‘just enough knowledge to get into trouble’ becomes critically important. One can read a book, study online or hire a consultant to learn the basics of franchising, but making the decision to apply that knowledge is a different story altogether. Walk don’t run.

Truth 3. Forget about how to franchise and focus on whether or not it’s a good idea.

The only way to make a good decision about actually taking the plunge into franchising is to study the options for growth and make an objective decision about those options, including the franchise option. The operative word here is ‘objective.’ Entrepreneurs tend to not be objective about their business. The solution we’ve always recommended is a hands-off, impartial third party. However, that third party is difficult to find because most consultants are very eager to encourage franchising. That’s how they earn a living. You must be rational and try to keep your emotions at bay to decide if a prospective consultant is moving your forward for a fee or being honest. Trust this advice. It could save your life.

Truth 4. Focus first on making a good decision, not on the how to franchise the business.

Bibby Group was the very first consultancy to offer a sensible process to determine the feasibility of franchising that was completely void of salesmanship and suggestions that a business owner franchise their concept.  As stated above, if you listen to what is being said and how it’s being said, you’ll know if the counsel is for your benefit or the benefit of the counsel. Just be careful. Be far more intent on finding out if franchising is a good idea versus how to go about it.

Truth 5. Success in business does not translate into knowing how to franchise a business.

Franchising is not a do-it-yourself project. The entrepreneur’s expertise in their business in no way equals franchise expertise. Franchising is an industry, a psychology and a mindset unto itself. Do not be fooled into thinking differently. We have published many articles on this subject alone and they are worth reading. Be advised that many have failed because they refused to observe this truth.

 

 

By |December 20th, 2016|Categories: Franchising, Franchising a Business, Franchisors, Uncategorized|Comments Off on How to Franchise a Business