Starting a business is very risky, and the initial months can be like a nightmare. It is such a relief to see your business flourishing after all the blood and sweat that has gone into it. In the next phase, establishing a business has to be expansion and growth. The best way to expand both economically as well as geographically, in today’s date, is by setting up a trade franchise. It is such a big leap, but it could do wonders for a brand if successful. What are the factors contributing to the success of a franchise? Here is a guide to give you a head start.
What Are the Pre-Requisites for a Successful Trade Franchise?
Before deciding on it, you should make sure your business has what it takes to be a successful franchise.
Focusing on the promotion of your brand. It’s good that you have a well-established name in the market, but that doesn’t mean that you need to stop here. To establish a successful trade franchise, you need to work towards improvising the same continuously.
Following a unique approach to brand, promotion is a must. The products or the brand that you market should be unique so that it creates an identity for itself in the market, beating the competition.
The business should be highly profitable because the franchisee should be able to earn a decent profit after paying a royalty fee that is worth your efforts.
You should have a high capital for investment because a lot of new units have to invest in and a shortage in the capital can lead to a breakdown of the whole structure of your franchise, incurring losses.
What Are the Basics of a Trade Franchise?
If your business seems the right choice to be a trade franchise, it could be the turning point for your business. Here are some basics that you should be clear about:
- You should have a vision for your brand and a message that any potential franchisee should be able to be a part of. The values and ethics that you follow should be clear. This part should also include why it is a good idea to connect with your brand and be a part of the vision.
- A business plan is very vital to the trade franchise launch. You should decide what your brand is about, who your customers are and what are the short and long term goals that you are aiming for.
- Having a strict protocol of working is a must. If you are planning to establish a trading franchise and are willing to expand it across the nation, then you should be working towards having a stringent business process that will remain the same throughout the franchise chain.
- A legal, as well as an accounting unit, should be set up to draft the ideal franchising agreement, the distribution of capital and sustainable royalty fees for both the parties.
- Having all of the systems of operation in place is one of the final steps before the big launch. You should have training and marketing programs and staff ready. A sales team to help the franchisee out in planning the initial ways of business can be a huge bonus.
Once all the preparations have been done, it is very important to have a grand launch to get worthy of a franchisee. Seminars, webinars and trade franchise expos can be a great way to expand your business or finding franchise. One of the most powerful tools of our generation is digital marketing. Make sure to make the most use of it. If you lack the manpower for establishing so many new units, you can outsource a lot of the work to reliable agents, for a fee. Don’t be in a rush to give your trade franchise out. If you wish your brand to grow well, then it’s important to find the right franchise holder. Do your research, be patient and don’t compromise on your core principles.
