I Want to Franchise My Small Business - What Do I Do Next?

Many small business entrepreneurs build a local business and do such a wonderful job that they have people lining up at their doors, literally. Many of the customers are quite happy to give them that unit of trade we call a dollar for their goods and services. Then one day someone who knows something about business, or maybe not too much, states;

"Boy, you have a great little business here, you should Franchise This!"

Then they put in a little caveat, "and, I want the first one since, I thought of it!" Interestingly enough, the customer didn't really think of it first, generally when an entrepreneur sees all the customers, he or she, thinks; "Wow, we could put a business like this in every city in this state, or country, maybe the world!" And yet, it often takes a number of customers over quite a few months for this dream to develop, and for the entrepreneur to say; "Yes, I really should Franchise This!"

That is when the daunting task of what it takes to franchise a company really sets in. You see, it often takes a million dollars or more to develop a solid franchising program and to become a franchisor, and there are never any guarantees of success. Did you know that the failure rate of Franchisors is something like 5:1 in the first 5-years?

It's true, and generally it is because of lack of capital and unforeseen costs, including lawsuits, as it is a very litigious industry, which any franchising executive can attest too. This does not mean it is impossible, and there are 1,000s of examples of companies that have beating the odds in the franchise sector. But you are going to need some advice from some competent experts to pull this off. So, please consider all this.

Lance_Winslow

Enter Your Email Address For Update :

Delivered by FeedBurner

Related Post :