Why you should be franchising your business
Is your business doing well? Are you looking to expand? Do you want a way of financing your expansion that’s low-risk and cost-effective? The answer could lie in franchising. Business expansion can be risky, particularly if you’re going to be putting money from the business, or your own cash, into the process. Even if you borrow money, the cost of interest and the possibility of having to service a loan without realising additional profit from the expansion is always a concern. In these circumstances, marketing your business as a franchise opportunity could be the perfect solution. Take a look at three good reasons why franchising could be the way forward.
1. You’ve already done the hard work!
If your business is succeeding, chances are you’ll have put in an enormous amount of work to make your marketing, branding and customer care as good as it possibly can be. As a result of that effort, and probably a few mistakes along the way, you’ll have worked out exactly what’s needed to attract and retain brand loyalty. It’s these results that add value to your franchise. Franchisees stand to benefit from your expertise, but in a way that also benefits you, through the purchase of the franchise.
2. Very low-risk expansion
Unlike the risks involved when you put your own funding into expansion, a fresh franchise is financed by the franchisee. This gives you all the advantages which expansion might bring, but with few of the risks. Additional branches increase brand exposure and customer base, without you having to part with a penny!
3. Cash upfront!
When you sell a franchise, you pocket a lump sum. This means that, regardless of the success of the franchise, you’ve already made your money. Another important way of eliminating risk, cash upfront is a major advantage. Economical uncertainty means the future of a new franchise can’t be assured – however as a seller, once you’ve got the price of the franchise in your bank account, you can start to relax.
If you’re looking for a win-win method of expanding your business, franchising could be the way forward. Contact us at Franchise UK today to find out more.