The price of success often includes investing in growth to open more locations and get into larger markets. One possible way to do this is to turn your small business into a franchising opportunity.
“A good product or service and a concept that a lot of people are interested in will lead to a successful franchise,” said Eric Newman, former executive vice president of Bojangles’ Famous Chicken ‘n Biscuits chain. “Once you find a model that can be reasonably executed, you can do a lot with it.”
Business News Daily spoke with successful franchise leaders about their tips for achieving rapid franchise expansion. [Want to turn your startup into a franchise? Here’s how to do it.]
Expand your “home base.”
Before you try to open franchises outside your immediate area, build up your share of the market you’re already in, said Newman. If you fully penetrate your home market first, you can gradually grow your base and expand outward.
Allow for organic growth.
Accepting large sums of investment capital to build more locations may seem like an attractive way to expand your business, but Newman warned that this artificial growth could hurt you in the long run. Build up your brand and reputation, and let your business grow organically, even if it takes a little longer at first.
Perfect your business model.
Newman advised using your early franchise locations to test out and perfect your concept. Do you have a great product with wide appeal? Is your business scalable and economically feasible? Will it work in other locations? The success or failure of each individual location can help you answer those questions and figure out what needs to be tweaked to guarantee future success.
Continue to evolve.
Rob Price, president and CEO of School of Rock, noted that the most successful franchise concepts work hard to keep the business model fresh to “fully capture the imagination of their outstanding owners.” This includes evolving both your consumer offerings and your marketing, technology and operating model, Price said.
“Franchises must have a robust business model to perform well and be a formidable competitor in their given industry,” added Steve Jackson, CEO of Hungry Howie’s. “Successful chains start with a stout business model, [then] continue with growth of the right scale in ideal locations to reach peak market saturation.”