There is no question, as outlined above, that franchising can be the perfect expansion model for any business. However, not all business owners or companies should franchise.
So how do you know if it is right for you and your business? The answer is you need to go through a validation approach as the first step. Whenever we work with clients who are considering franchising, we take them through this validation process as the first step. What I am going to do now is take you through simply the very first step.
Fit for you personally
This is often what is not looked at and is, in my opinion, the most crucial point.
You see – it is essential to have a clear personal and ideal scene for your life so you know exactly what your business needs to look like so it can achieve your personal scene, goals and have the life you designed. We covered how to put this together before, but if you would like a template of the Ideal Scene, I’ve linked one here.
Depending on what this looks like, you will determine if the franchising/licensing leverage model is likely to be a good fit for you personally and where your business needs to head.
Some of the things you should consider during this process are:
- What do you like doing and want to spend time on
- What do you want to avoid and not do in your business
- What is your appetite and level for risk
- What is your exit plan, and what is going to support this exit
- Where do you want to be in one year, three years, and five years
- What is currently going on in your world that you would like to change
- What are some of your key policies and non-negotiables as you move forward
Remember, this refers to you personally and what you expect (and deserve) from the growth and expansion of your business.
Once you have asked these seven questions, you will begin to see if franchising is a fit. Suppose you want to work on the ground in your business, not on your business. Then franchising won’t be for you.
Low-risk appetite? Perhaps spending money developing your business won’t suit you without a clear outcome. Franchising may not be a fit for you. But the true purpose of this exercise is to know that.