December 12, 2012

Franchise It!

The Franchise model is one of the strongest business models out there, but why? 

How does a single location become multiple ones and reach a larger geographic area?

The short answer: a repeatable system.
All successful businesses are run by an organized system. A single business location multiples when processes are documented and recorded. Basically every activity is written down in a handbook so it can be taught to someone else in the future.

Once this training manual is completed, the systems can be taught to new employees. Remember the "...for dummies" book series? They teach the basics so you can do it on your own. The more simple, repeatable steps there are, the easier it is to replicate. Clear instruction leads to easy implementation.

To open another location, follow the steps above and repeat!

In one of my favorite business books "Built to Sell" the author illustrates how to make your company sell-able. Your goal might not be to sell your business, but you'll never know how much it's worth until you build it to sell. When you streamline your processes by documenting them, it gives your company the opportunity to scale and function without your direct involvement. To all you control freaks out there, this concept may be scary to consider, but if your idea is dependent on your participation it will never grow to reach its potential without the help from others. 

As a new father, think of your business like a child. It's your responsibility to train and guide him/her to be independent enough to launch and leave the nest. 

There are plenty of successful franchises around to learn from. You don't have to copy what they do, but study their model to build your own franchise!

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