Posted on
March 27, 2008 by
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Bodies to take you before the opening of 20 offices, without paying the bill for real estate, equipment and development costs or risks. Even more, can imagine the manager for all these places are also committed to growing the business running, and you pay a cent. Finally, imagine that these managers, fire setting and manage all employees and pays the bill for all operating costs and expenses. Sound exaggerated?
Not if you plan on giving the franchise industry, one of the fastest ways to a small business without developing a fortune. For many companies, the franchise of a company (or licensing) is a sensible way to achieve rapid growth and costs, without any control or ownership. Passage of a unique place for a dozen years, or two percent in ten years is possible and well documented, the owner of the franchise, as investors put the entire capital investment, shoulders all the risks and take the entire day updated operational responsibilities.
This expansion with OPM – Other People’s Money. In addition, the franchise company also pays by teaching others the secrets of how you operate your business. First, there is no progress “membership” fee or free of $ 20,000 to $ 50,000 will be paid for the use of the brand and operating methods. In addition, continued royalty rate of 5% to 10% of gross sales for the advice and consultation. Basically, a program of the franchise development of the company can rely in the trenches, and a general control very well paid for their soldiers. Long-term options are also very attractive. Build up an empire and relax, or let the franchise company of a growing number of large companies that are small, but acquired the growth of the franchise. According to the International Franchise Association, 900 new companies in more than in the past three years.
Entering a New ENTERPRISES
The franchise company should understand that it has entered a new business, an entirely different service (training and support very) new customers (business owner-operators). These new businesses require different skills, abilities and experience. The new franchise company, is of fundamental importance for the development of an effective evaluation, documentation, consulting, training and counseling skills. Since these new discoveries are rare within the existing staff, require an expert on franchising in order to train the existing staff and plan for the transition. The first step is to determine whether a company can deductibles, and if so, what is to be developed. Then the franchise strategic planning will be needed to create a “blueprint” for a successful expansion efforts. Experience shows that, as has a building, the Foundation is already developing lasting consequences that affect the relative success (or failure) have the society as a whole. Legal (background information for franchises, franchise agreements) and operational documents (manual of franchise or franchise-training program) were prepared and developed, and finally a process of registration of the franchise is mandatory in some 14 countries, according to (state s ), the company sells franchises. These steps are described below.
The feasibility phase FRANCHISE
A necessary step before creating the franchise program is an analysis of the concept and business model. The concept has been sufficiently proven in the market? How profitable are the prototypes or existing company-owned outlets? The exemption will not solve the existing problems will only intensify with – and usually a serious cost to investors of the franchise. The franchise was not designed as a way to capitalize on and take into account the development of a company that has the existing problems, or how to get rich quickly. There must be a sufficient return on the business model, so that royalties and other payments can be made, and allow the investor franchise with an adequate profit. A feasibility analysis of the franchise, the finding of the in May:
(a) the licensing or ideas of expansion must be done to be postponed or abandoned, and
(b) Assuming a positive result in (a), which must be refined or developed from scratch for the franchise program.
In addition to determining whether and when the company may be deductible, the analysis also provide advice and guidance so that most of the foundations of what will be done by existing staff. This proved to be very effective and significantly reduces the development costs of the franchise. If the feasibility study is positive, the other phases are discussed below. My twenty-eight years of experience in the franchise industry allows me to gain valuable information on feasibility studies of the franchise share. Too many companies jump into the franchise, since it is a feasibility study, or if someone has done a counselor or a franchise group that says all the good news than done – they are all franchise “may”. The vast majority of feasibility studies, the franchise did well to areas requiring the attention before the franchise still a way to remember or ask the customer to identify and explore alternatives.
RELIEF PHASE of Strategic Planning
An agenda for the development of the franchise starts with a solid plan – a foundation for the franchise. The long term goal is to build relationships that support successful balanced integrated business skills to the company goals and image. Create a lasting relationship requires a comprehensive strategy addressing all aspects of the behavior of the franchise.
The starting point is a detailed analysis that includes:
(1) identification of the characteristics of the profile of who the best franchise companies, especially their own;
(2) the competitive position of the franchise from the 3000 + different franchise companies;
(3) space – where and when to sell franchise;
(4) analysis of the strengths and weaknesses of the organization of the business relating to the exemption;
(5) the identification of the franchise organization structure and appropriate staffing and responsibilities and
(6) structuring the franchise relationship for a balanced, win-win scenario.
