Purchasing a franchise is one thing, but converting your small business into one is another. Here are 5 things any entrepreneur looking to franchise his or her business concept should know beforehand. Take this info into consideration to avoid the risk of failing twice with one venture.
1. Is this a good idea? Is your product or service marketable across the country? How about across the globe? What makes your company distinguishable from others out there? Is what you do teachable?
2. Law and order. Connect with a franchise attorney through the International Franchise Association (www.franchise.org), a Washington, D.C.-based industry trade organization. An attorney will help you ensure that your business is structured to transition into a franchise.
3. Play-by-play. If you havenâ€™t already done so, create an operations manual. A consistent protocol is a must. It takes ample time and capital to become a franchiser. Make sure you have both.
4. Are you ready? Will you need a loan? Do you have the funds to hire a franchise development staff?
5. No overnight success. You should have at least five years of experience running your business before you try to become a franchiser. It takes time to generate substantial revenue and measurable growth to use as leverage.
Looking for ways to expand your business’ reach? Join us at Black Enterprise’s annual Entrepreneurs Conference, taking place May 22-25, 2011 in Atlanta, Georgia. Visit blackenterprise.com/ec for more details. As an incentive BE is offering you a discount on early registration: Just enter code BEDG295 and receive $200 off. Don’t miss this opportunity to receive valuable strategies and resources to help take your business to the next level.