Steps for Franchise Development – A Holistic Approach to Start Franchising Your Business
Franchising is a viable strategy to grow your business both locally and in new international markets. Business owners with aspirations to franchise their businesses for expansion and growth should take specific steps to enhance the viability and the long-term sustainability of the franchise.
For the very first step, an aspiring franchisor would need to clearly identity and offer the unique selling propositions of the business to franchisees. Only then would the franchisees be able to compete effectively in the marketplace. In light of this, resources should be invested to make key business components transferable and replicable.
In the next step, the new franchisor has to establish clear and sound franchise strategies. These strategies would include determining the format and extent of the franchise; put simply, the ‘how’ and ‘where’ of the business expansion. A well thought through franchise plan would also consider factors such as whether to grant a Single-Unit, an Area, or a Master Franchise (where a franchisee to allowed to sub-franchise), in view of external conditions such as the size of the target franchise market, the competitive landscape and the capabilities of a franchisee.
Then, the new franchisor needs to set up a robust franchise support structure so as to ensure the smooth roll-out and running of the franchise business. The structure would, amongst others, include the setting up of proper recruitment and supervisory procedures, as well as the documentation of an effective operations manual to facilitate the transfer of know-how from the franchisor to the franchisee and the replication of the business by the franchisee.
Last but not least, the new franchisor would need to value and put in place a win-win relationship with its franchisees, for an ongoing and thriving network of relationships is the foundation for a successful and flourishing franchise business.
By FT Consulting Pte. Ltd.