How to Turn Your Dreams of Franchising your Business From Vision to Reality; Using a Premeditative Approach

by Jason Stangroom

Franchising your business is one of the fastest and most lucrative ways to grow your company– it is also one of the riskiest. Most business owners fail to franchise because their franchisees can’t successfully copy what appeared to be a proven business model. Therefore, you need to be certain that you have a business model that can be successfully copied. Yes, I know you have a proven business model that has made you extremely successful. You have run your business for 20 years, you drive a luxury car, and you have a condo in the Bahamas. You have done well and I commend you. However, in all likelihood, you are successful because of YOU, not because of your business model. Your business model likely has gaps that you have made work because of your own experience, and business acumen. In other words, you have made a faulty system work well. When you try to replicate your faulty model, your franchisees will fail because they are not you.

To ensure that you can successfully franchise your business you need to develop a scalable and replicable business model by following these 7 premeditated steps,

1. Identify a Market and Value Gap
2. Review and adjust your strategy model using best practices
3. Review and adjust your operations/financial model using Best Practices
4. Review and adjust your marketing model using Best Practices
5. Review and adjust your sales management model using best practices
6. Review and adjust your sales process using best practices
7. Align your business departments, close the gaps and integrate everything together.

To ensure precision and compliance, it is best to obtain a 3rd party perspective. Someone who is not emotionally or financially attached to your company like you are. Owning or managing your business creates an emotional bond with every decision you make. These decisions at times are reactive to stress and counterproductive to your stated goals. Working with a 3rd party specialist provides you with objective direction no subjective opinion.

After the gaps are closed and your business model is adjusted to minimize franchisee failure; you can then start taking action steps to franchising your business.

6 Action Steps to Franchising your Business

1. Calculate corporate asset requirements for expansion
2. Calculate employee staffing needs for expansion
3. Write a strategic business plan
4. Plan timelines needed to layout your franchise development
5. Seek legal advice from a lawyer who specializes in franchising
6. Seek advice from a company that specializes in franchise development. Companies who chose not to work with a franchise development firm in an effort to save money end up spending twice as much money making mistakes.

Franchising is not for the faint of heart. It takes effort, commitment, resources and an open mind. Taking a premeditative analytical approach of your business model will minimize risk and help ensure your success as a Franchisor.

About the Author:

Jason Stangroom is the CEO of Revenue First Group Inc., a Burlington, Ontario based business coaching and advisement firm. Revenue First Group Inc. specializes in integrating sales, marketing, financial management, and business strategies into one outbound revenue capture program to maximize corporate revenue growth.

Jason is a Certified Business Performance Improvement Coach with the Value Forward Network. Jason works with senior executives of start-ups, privately held companies, and Fortune 1000 companies in both the private and public sector. He is a staff writer for the largest marketing and sales strategy newsletter in the world, BDM News, with over 160,000 opt-in subscribers in 110 countries world-wide and with the CEO newsletter called CEO Management.

As an internationally schooled MBA graduate, Jason has worked with Canadian, US, Australian, European and Asian based companies to create successful international business revenue growth programs.