How To Start A Franchise Business?

Listen to most franchise consultants and they’ll say you need a unique product before you can successfully start a franchise business.

I’m not sure that’s true. Just look around at the number of pizza franchises and you’ll see my point.

Of course, you can start a franchise based on a previously untested idea and business model, and if it’s good enough, it will work.

However, most business owners get into franchising by converting an existing business that’s already up and running.

Documenting the systems for running the business and hiring lawyers to draw up the legal agreements that formalise the relationship with franchisees, are all part of that process, but unlike franchise consultants who leave it there, I think there’s more to starting a franchise business than this.

Of course, documented systems are the backbone of any franchise business, if you want your business to be managed consistently across multiple outlets. And legal agreements do back up your brand values because they help ensure that franchisees do what they promise.

But if you want to start a franchise successfully, I think you need to look at your business as a whole before you set about turning it into a franchise – if it’s not ready, you’re likely to be wasting your money and your time.

I’ve been working in the franchise industry for the last 30 years – and during that time I’ve discovered that it’s possible to systemise not just day-to-day franchise operations, but also the actual setting up of a successful franchise in the first place.I’ve developed this into a straightforward seven-step plan that focuses firmly on the ‘must dos’ for successfully starting a franchise.

So here’s the process I’ve used to help dozens of business owners to franchise their business successfully, increasing their profits substantially while working fewer hours:

ONE) Learn about franchising before you begin. If you don’t know how it works, you won’t be able to make it work effectively for you.

TWO) Assess the suitability of your business for franchising and whether you have the skills, confidence and personality to make a franchise work.

THREE) Review and, where necessary, improve your current business operations before encapsulating them in clear and comprehensive documentation that others can act on.

FOUR) Grow your franchisor business by strategically developing each of its component parts.

FIVE) Establish a pilot franchise operation to test out your systems and to show that the business can operate as a successful franchise.

SIX) Recruit your franchisees, selecting them carefully so that the right people are in place.

SEVEN) Think about the future and your franchise plan. If you want your franchise to be a success, you must offer effective on-going training to your franchisees, as well as keep your brand current and fresh by protecting it brand from erosion.

By following this system, many who were new to the industry have avoided a myriad of mistakes that have derailed the ambitions of others who have tried and failed to start a franchise successfully.Here’s an example of how one franchisor, Ken Murray, went about building a successful window cleaning franchise, KenKleen, controlling costs so that he had the funds needed for franchise development.

When he set up in 1987, Ken specifically chose window cleaning for franchising because there was no product to buy, no expensive stock to hold and little investment necessary in franchisee training.

That meant Ken could keep things lean and mean. With his documentation amounting to no more than a five-page manual, and with Ken personally training his franchisees on site, there was no fancy spending here.

Ken also ensured that recruitment costs stayed near zero by selecting the first franchisees from people in his church group, and then through friends, family and referrals from customers.A similar low budget approach was taken with marketing. Leaflet drops in local streets proved highly effective and cost very little.

In all, Ken spent just $3,000 or so on starting up his franchise, really just  enough to cover his legal costs. As a result, he had more money to plough back into franchise development.

This low cost model also meant minimal upfront investment by Ken’s franchisees. So they quickly saw a return on their money, which made them enthusiastic about building their business. That resulted in more sales, which in turn led to more profit for Ken.

Today KenKleen operates in six States,each managed by a State franchisor – a perfect example of how to go about successful franchise development the low cost way.

To find out more information how we can help you franchise your business you can have a look at our franchise resources. We’ve got an array of programs available to help you franchise your business.

In my Do It Yourself Program, using my How To Franchise Simply Program you’ll learn everything there is to know about starting your franchise. However if you want speed and high level of support then the Done For You Program will be right for you. and you’ll have all your legal documents ready, as well as access to franchise specialists who’ll be working for you on territory creation and operating systems, and providing business coaching.

We believe in doing business… …for good

Our quest is to continue to help business owners who want to grow their business into a more valuable asset.

We do this through a number of our enterprises.

Through Franchise Simply® we help business owners who want to grow their business into a more valuable asset through franchising. The team of expert advisors at Franchise Simply® does this this through our simple three step Franchise Success Path which can be delivered in many different ways to suit you. We work closely with our team of leading franchise experts to provide the full range of services to the franchise industry, from carefully crafted legal agreements and operations and procedure manuals, to expert advice on corporate structures, fee structures, territory planning, franchisee support, recruitment and much more…The result - our members implement fast and get everything they need to succeed all in one place. Click here to join our inspiring community of entrepreneurs and you can be our next success story.

We believe in giving back and so a percentage of every program is given to MicroLoan Foundation Australia to help women in Southern Saharan Africa to build businesses and take their families out of poverty. To date we have helped provide over 60,000 loans impacting on 355,000 impoverished people.