FOUR TIPS TO STARTING A SUCCESSFUL FRANCHISE

Have a successful model. It is impossible to create a franchise program without having at least one successful operation, a pilot, if you will. It is not feasible to think that if your core business loses money and is unsuccessful, that a franchisee will be any different.

INTRODUCTION TO FRANCHISING
FOUR TIPS TO STARTING A SUCCESSFUL FRANCHISE

By Cambridge Who’s Who Lifetime Member and Contributing Author Harold Kestenbaum

My name is Harold Kestenbaum, and I am a franchise attorney. Many of you may want some information about what a franchise attorney does. I realize that franchising is not a well-known sector of the legal profession unless you work in the industry as either a franchisor or a franchisee. Here is how I became involved in franchise law.

In 1977, at my third job out of law school, I worked for a solo practitioner in Manhattan who represented many corporate clients, some of whom were publicly traded. One company happened to find the opportunity to franchise their business. One day my boss said to me, “Kestenbaum, I need you to learn about franchising opportunities, so that you can handle our franchise client.” Not knowing what in the world he was talking about (I had done everything but franchise law up until then) I found every book I could on business franchising information (there was no Internet in 1977) and for the next four years I immersed myself in franchise law. When New York State passed a new franchise registration law in 1981, I decided that it was time for me to become a solo franchise attorney and resigned my position. I have been practicing franchise law ever since.

Based on my years of franchise experience, I wrote a book, So, You Want to Franchise Your Business, that delves into the opportunity a company embarks on the franchise path. It includes the dos and the don’ts of how to franchise your business. In my book, my co-author, Adina Genn, and I discuss what makes a company have the right opportunity for franchising and how to go about turning a successful business into a franchise company. Here are a few key tips from my book:

1. Have a successful model. It is impossible to create a franchise program without having at least one successful operation, a pilot, if you will. It is not feasible to think that if your core business loses money and is unsuccessful, that a franchisee will be any different. It is imperative that your franchisees be successful, otherwise franchising opportunities will not work.

2. Make sure your business model is replicable. You must be able to build clones of your operation, otherwise, the system will not work. Have you ever seen a McDonald’s without the infamous golden arches? That is just one example, but it goes beyond the look. It is the method of operation that must be duplicated in order to have the opportunity to franchise.

3. Attain capital for your franchise. You must have capital in order to roll out the franchise program. You cannot believe that franchising will cure your cash flow issues, you need to have money in order to roll out the program. Do not view the program as a way to fund an undercapitalized business model.

4. Prove your model works! The concept that you are trying to franchise must be lucrative. You must demonstrate that your concept works before you try to offer it to the public as a franchise. If the business model is a failure, your franchisees will inevitably fail as well. Franchising can be a wonderful business opportunity, but your initial model must work first, otherwise franchising will not be possible.

Why franchise your business? That is a very good question. But to those of us in the business, the answer is quite obvious. If you want the opportunity to grow your business beyond one or two stores, and you cannot afford to build more units at, for example, $500,000 each, then what better way to grow than to let a franchisee buy a franchise and build the unit himself or herself for that amount, and you simply receive the weekly royalty of 5% or 6% of gross revenues? Franchising is a vehicle for growth using the capital and human resources of someone else (the franchisee). How great is that? It is simple, yet complex. The franchising relationship goes much deeper than building the unit and collecting royalties. It is a starting place for companies that want to grow but do not have the internal capital or human resources, like Starbucks, to do it by themselves.
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The Reason Every Young Entrepreneur Should Start A Franchise

Author:

David

Are you aware of the fact that most entrepreneurs will not make it past their very first year in a new business just because they have not spent the time creating a strategy that works? This is something that more and more people worry about when starting a business of some kind but what you need to understand is that not all business are like this and one of the best business to start is a franchise.

What you need to understand is that as a young entrepreneur there will be things that will come up that you will have to deal with and the nice thing about a franchise is that they do all the worrying for you so all you do is go to them when there is a problem that you don\’t know how to fix. The nice part about not having to spend tons of time working on the things that most people hate and that new entrepreneurs don\’t know much about is that the franchise will not be built on a faulty foundation.

If you think that all franchises won’t be successful then think again because as long as a new entrepreneur follows the footsteps left by the main franchise then they should do just fine. If you think that you need to establish your own way of doing business then think again because following the path that the main franchise put into place is your best bet. Just do yourself and your business a favor and follow what was already laid out for you. Just remember that one of the best things about any franchise is that you are getting everything that you need laid out on a silver platter so that you can take over and create your own success.

Something that I know many people like about franchises is that they don’t cost as much as a new business would and you still get all the support that the franchise has to offer you. As a new entrepreneur there is a lot of things that you need to learn along the way and that is why running a franchise and being given all the support and guidance is such a benefit to you. Something that you really need to know is that when it comes to franchises the only problem that you should have should come when it comes time to choose a location or get funding because everything else is pretty much all laid out for you already.

The final that that I want you to know about a franchise is that it is up to you to decide which franchise you want to operate because there are a lot out there that you will need to weed through. What I would recommend doing is to figure out what kind of business you would like to start from the ground up and then go out and see if there is a franchise that offers this exact same thing.

Article Source: http://www.articlesbase.com/franchise-articles/the-reason-every-young-entrepreneur-should-start-a-franchise-5125282.html

About the Author

If you can\’t find what you are looking for then I would recommend that you try to own a Plato’s Closet since they are one of the rising franchises out there.

The author of this article is also highly skilled at mobile marketing.

The Best Businesses To Run In A Down Economy

Author:

David

Do you have an idea of what different businesses you could do now that the economy is not that good? What most people don\’t realize is that there are thousands of business ideas out there for you to start and one of the best ones is to simply operate a franchise as opposed to starting something brand new. What most people don\’t understand about franchises is they are great for new business minded individuals who want to take control of their future and make their own money.

Something most people like about franchises is that it doesn\’t matter how much knowledge you have with running a business. The reason why it doesn\’t matter if you are new to business or have been running businesses for year, with a franchise they will train you to run your business the way that they have found to work the best and they will guide you every step of the way. What most people think about franchises is that the company will just take your franchise fee and then leave you out there to fend for yourself, trust me, franchises have a lot of money put into their business to just let you setup shop and fail.

One other reason why a franchise would make a great business is because there are a lot of different ones out there which means you will have the option to pick the one that works the best for you. If you think that all franchises are the same then think again, the differences com with the training and the support they offer you and that is why it is vital that you get out there and see who offers what.

Tips To Running A Franchise

Stick to the training – Most franchises will give you a presentation as to how they want you to do something and if that is the case don\’t alter it at all until you find a better solution to do the exact same thing. The reason why you have to stick to the training is because the training has already been tested and proven to work so why mess with it.

Run a passion – Do you have a passion for clothes? If you have a passion for clothing then you should run a consignment franchise and see where that goes. Having a passion for what you do is going to make a huge difference in the way the business is ran and that is why you should think about what it is that you really want to do. Most people are not passionate about much and that is why so many businesses fail.

The last thing you need to understand about franchises is that it doesn\’t matter if the economy is good or the economy is bad, they will always have their place here. Remember that franchises are what you make them and not what the franchising company wants them to be like.

Article Source: http://www.articlesbase.com/franchise-articles/the-best-businesses-to-run-in-a-down-economy-5003462.html

About the Author

If an easy business with a lot of support is what you want then I would recommend starting a consignment franchise.

The author of this post is also highly skilled at local SEO, so if you want to know more about it then click here.