Important Factors to consider for Franchise Business
Have you ever think of the advantages and disadvantages of franchising?
Have you ever thought that whether you are choosing the right franchise partner or not?
So, let’s talk about the advantages that a businessman can get after adopting the franchising business strategy; and they can be the benefits which we get in terms of running cost, recurring revenue, international presence and the advantage of economies of scale which we get because you are adopting the centralized systems in your processes which are ultimately reducing your costs.
But there are some disadvantages as well;
If you will not control or oversee what the franchisee is doing with your business, then you may loss it as well because he has the powers to do anything with your business. But as the real owner you have to always keep an eye what he is doing. It is not like you are free from your authorities and responsibilities because ultimately the business is yours only. So, try to adopt the standard operating procedures and prepare the manuals, also control the critical decisions as well.
Do not ever do hurry in choosing the franchisee, you can’t choose anyone and you can’t handover your business to anyone. You have to look for someone who can use time, money and energy equally; otherwise it will destroy whatever you have started with.
Choose the partner, who knows everything about the business, you are involved in. because if a person doesn’t know about the background of the
business then how could he be able to take the right decisions at right time. Because what management says is that, take the decisions effectively as well as efficiently. The person should know how to follow the standardization, not the variations.
You always need to look into these factors as well like; cleanliness, customer service, pricing and also the quality standards which he is following or going to adopt.
Because the franchising is not like the process of mergers and acquisitions where the company has to operate into the existing operations but it is about to build the new operations with proper market research. One wrong step can make your business identity down which has not yet started.
If I conclude this in easier terms then, you have to be very organized in terms of marketing, correct process to appoint the sales staff by providing them proper training, about the signage, business card, letterhead, tagline and everything which can affect your brand identity. Because if you will not be able to choose these things correctly for your business then you will going to lose your connections due to lack of communication, lack of understanding which are the key factors for the success and for understanding everything.
Now it’s up to you whether you want to hire the deal makers or deal breakers?
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