Written by Efranchisesale Staff Wednesday, 09 June 2010 12:44
Do you have dreams of expanding your business, but lack the capital or manpower to do so? Becoming a franchisor may seem complicated, but with the right resources it can be the safest way to raise capital. This post explores why you should franchise your business.
Spend a few minutes on a “Franchises for Sale by Owner directory” and you will find a lot of non-traditional businesses looking to expand their enterprise through franchising. That’s because the cost of franchising is usually much smaller than the cost of opening a new outlet on your own. To get started, the only investment one needs to make is the cost of the franchise program itself. All the remaining costs of expansion are assumed by your franchisees. Most franchises for sale require an up-front fee to the owner, so you may even find a venture like this to be an immediate source of low-risk revenue for your company.
Of course, there are some ways to ensure that franchising will work well for your business. Before you enter the Franchises FSBO marketplace, here are a few of the most important factors to consider:
• How long has your operation been in business? Is it large enough and stable enough to make an attractive investment?
• How about your profitability? How consistently and predictably is your business making money?
• Is your concept marketable? Can you effectively communicate the concept of it to others?
• How easy (or difficult) would it be for you teach others how to run your business? Can your success be easily duplicated?
• How organized is your business? Is it systemized in such a way that it can be fully described in an operations manual?
• Do you do something that can just as easily be done in another part of the country, or is it dependent upon certain market situations or seasonality?
• Is your concept original and unique? Is it different enough from your competitors to make it stand out in the crowd?
The answers to these questions will help you determine how feasible it really is to become a franchisor. Before you start writing your marketing plan and before you post your first ad in the eFranchiseSale Franchises FSBO Directory, be sure that franchising is really a fit for your business model.