Growing a franchise to achieve a considerable foothold in the local market may be the toughest job of a franchise owner. There will be competitors in every corner, from independent businesses to potentially similar franchises themselves. But how can you build a franchise? What decisions and strategies can you make and use to expand its operations? Below are some tips to answer these questions:
Build a sound business infrastructure.
Even with some business management experience, you still need a workable infrastructure to guide your franchise successfully. A franchise operates in a different game, so a newer capital structure, both social and physical, must be created. Social capital consists of the rules, connections, and standards of dealing with franchisees and your customers; while physical capital includes your budget, equipment, and related technologies.
Create a supplier system for consistent revenue streams.
With a franchise’s collective buying capacity, suppliers can be lured to make business with you, selling you more as the business grows. Typically through discounted prices, you can create a system of suppliers. The more you franchise your business, the more these suppliers will be willing to work with you since they will supply more and earn more. For this, your franchise will produce consistent revenue streams through lower prices alone.
Craft an effective growth and investment plan.
Without proper planning, your franchise may never be able to progress. Given your budget, craft a growth and investment plan that will focus on improving your strategies, your personnel, and your capital accumulation efforts. Think of a production strategy that minimizes cost since the early years of a franchise are costly. Hire enough staff and train them while keeping within budget. Acquire capital that offers high returns. Invest intelligently while you grow.
Like any startups, growing your franchise is never an easy game. To grasp how the system works and later benefit from it, you have to have a solid foundation within your business as a producer and as an organization.