Why franchising is great to expand your business
| Why franchising is
a great medium and
network to start
and expand your
John O'Brien | CEO and past Chair of the Franchise Council of Australia, Asia /Pacific & World Franchise Councils | PoolWerx
As the tides of the economic crisis begin to ebb, and we see consumer and investor confidence return, franchising continues to be one of the most viable options for those considering entering business for themselves or expanding their existing business. In this article, we have tried to analyse three main reasons why franchising continues to be an enticing opportunity towards a satisfying life-defining career.
1. The calm after the (economic) storm: franchising still holding up
Franchising continues to be a strong option because the systems and support unique to this industry offer more stability than most businesses. However, it is not recession proof and during the recent global economic crisis many franchises had to reassess their business development plans and adapt to new market pressures to survive. In some ways it has been a survival of the fittest and it has helped "weed-out" the dead weight leaving the strongest ready to take charge as conditions improve.
Throughout the economic downturn we strongly encouraged our franchisees to follow the franchise system outlined by PoolWerx. Franchising works because it is based on proven systems and those franchisees that rode out the downturn understood the importance of showing extra diligence in following the business model that they have invested in.
Having also experienced the 1984 and 1992 economic downturns I also understood the importance of providing our franchisees tangible initiatives to support them when times were tough. The initiatives that we implemented, including several fee reductions and free attendance to our PoolWerx internal training program, were designed to assist our franchisees to run their business more simply and profitably during challenging times.
2. In business for yourself, not by yourself
The dour economy resulted in many people questioning the direction of their personal and financial goals and considering the benefits of being their own boss. Franchising offers individuals a proven system that has established a brand and market presence. It gives people the tools to begin business immediately without the level of risk that is associated with launching a new business from scratch and, as a result, greatly improving their chances of success in small business.
Entering a franchise also gives you support at every stage of the business including initial training, starting operation, marketing and day-to-day business support. While franchising means you will be in business for yourself, but not by yourself, you will ultimately be the cornerstone of your success. Even with a high-level of support from your franchisor you will need to apply a great deal of hard work and effort to reap the rewards.
3. The franchise system as the right option to enter a strong brand
Similarly, if you are a business owner looking to boost your business, then entering a strong franchise system could be the right choice for rapid expansion. However, this is not the only path leading to potential growth. As a business owner, you should conduct due diligence and seek information on all alternatives including joint venture initiatives, licensing or distribution deals just to name a few.
Being a part of a consolidated franchise system can offer the opportunity to achieve fast market awareness and recognition with minimal capital. As a business owner interested in becoming a franchisee, it is important that you do the necessary research to understand whether a particular franchise system will really match your expectations and your needs for growth. Don't forget that a good franchise model should be simple enough to be replicated, communicated and understood by everyone within the business.
Utilising your business experience within a franchise system may provide quick market penetration and expansion into new territories, but it is not a get rich quick scheme. However, it is a sensible strategy for expansion and to take advantage of valuable assets and brand awareness that are already nationally recognisable. But of course, it will require a defined goal and clear vision of what you want to achieve.
Roll up your sleeves and get ready
While being a franchisee can be a satisfying and rewarding career path it takes a great deal of hard work, elbow grease and commitment to achieve success. Make sure the path you chose is one that fits you to a tee and most important enjoy the ride!