|
Brian's
Introduction
By
Brian Walsh (Founder & CEO of
Entrepreneur.co.za)
For a company with a product or service to sell,
franchising provides an excellent opportunity
for rapid expansion without exorbitant outlay of
capital. It is a distribution system that
allows a business to conserve capital, and at
the same time achieve fast market penetration,
making it a very attractive proposition to many
business owners.
One of the greatest advantages of franchising is
that because each franchise is owned by the
franchisee, the franchisor can expect absolute
commitment from their franchisees. In a
franchise, the franchisee has a stake in the
business (the business is owned by him or her),
as opposed to simply being hired as a branch
manager or a staff member who would work for a
salary and may be less motivated.
It is important to understand that you can’t
just franchise a business without having
established a successful profitable operation.
Franchising a business is a lot of hard work,
almost equivalent to starting your business all
over again. It has new dynamics and challenges
that cannot be overcome instantly, but rather,
require long-term commitment. You must be
prepared to pay your dues all over again in
order to achieve the fruits of a successful
franchise operation.
Not all businesses can be franchised, and there
are many cases of unsuccessful franchising
attempts in various different industries. Take
the time to do extensive research. It is often
advisable to use a consultant to help establish
your franchising model.
|
Home
