So, you’re thinking about turning your business into a franchise? Amazing news! But, how is it done, you might ask? Well, there are a series of steps involved in order to ensure you have placed your best foot forward. After all, you want to have a smooth transition into the franchise model for your business. Below, I’ve outline five tips to make your business franchise ready. Keep in mind that this is not an exhaustive list and that you’ll of course want to have a consultation with an expert in the matter for your specific needs; such as: the Big Sky Franchise Team (shameless plug).
- Get your books in order!
If you were to have a surprise audit this very moment, would you be ready? If you’re sitting at your desk reading this with a pile of loose receipts mounting in your desk drawer collecting dust, the answer is no! A franchiseable business is a financially sound business. The only key indicator to that is not how many customers are pouring in the door each day, it’s your books. Everyone knows that the numbers don’t lie! We’ve all seen those businesses that ‘appeared’ to be in good shape but the next thing we knew they were featured on the national news with paperwork inflamed in garbage cans and employees looting salvageable office supplies as they created a stampede out of the front door. You want to be able to confidently say that your business is profitable? When your finances are in order, the numbers will say it for you.
- Get operationally organized.
When a new employee joins your team, are they thrown in the lion’s den and forced to ‘figure it out as they go’ or is there an actual training process? Granted, there are certain aspects of most jobs that are best learned by doing, but overall, there should be policies and procedures in place that are easily replicated for a potential franchisee in the future. Beyond employee training, how exactly is your business run? What is your business model? These are important aspects of your company that need to be put to paper. Think about it as if a good friend of yours was coming to your company to be CEO for the day and you weren’t allowed to help, only to show your operational procedures manual. Would it be of any help to them? Remember, professional service providers like ours can help you in documenting your business and putting it on paper. The key is to have the processes and systems in place.
- Cut off the excess parts that aren’t profitable.
Many times, in business when you first start off, your company may be juggling several services or products, but over time, you begin to see what the customers truly gravitate towards. Then, you hone in on that particular aspect of your company. Too often, business owners won’t cut ties with some of those original offerings because they may bring in trace amounts of profits or there is an emotional connection to it. Are they truly profits though? When you calculate the time, energy, and resources that have to be geared towards them they might be costing you more in the long run. Every business owner knows the sweet spot of their business. Stick to that and discard the rest!
- Instill solid leaders and team members in your company.
When you look at the employees of your company, you should see gems. Not the literal precious stones per se, but valuable assets. After all, these are your first draft picks for leadership and growth opportunities as you prepare for expansion. Are they being equipped with the right tools and opportunities to rise to the occasion when the time comes? Seek out opportunities in the work place as well as external conferences and training to assist your employees in shining their brightest.
- Sharpen your sales skills.
Is selling an important aspect of franchising? You bet! Unless you are in a super new type of niche, the likelihood that there are other franchise opportunities available out there with companies similar to yours is extremely high. You want your business to be attractive to first entrepreneurs, and possibly serial entrepreneurs, seeking a new endeavor. That’s where your sales hat comes to play. Are you able to clearly articulate and demonstrate why a franchisee should consider buying an ownership in your company? Are they able to get a good sense of why you like what you do? If your story isn’t compelling and transparent, you won’t be hooking any fish with that bait.
If you want to make your business franchise ready keep these tips in mind. It’s not an easy process, but a very rewarding one when you have the right support. The Big Sky Franchise Team is always available for a consultation when needed! Are there any additional tips you would add to this list? Share them with us on twitter or post below!