Companies created as a franchise can generate hundreds of thousands and millions of dollars in profit annually. But this will only happen if the system is properly organized. Most entrepreneurs do not rebuild their businesses for franchising because they simply do not know how to do it.
It is necessary
- - documentation / permits;
- - business plan;
- - start-up capital;
- - premises;
- - staff.
Instructions
Step 1
Conduct marketing research. Find out exactly what your competitors did, what they did and what they didn't. You can do this simply by becoming a client or customer with these companies. Also analyze the amount of profit they received during promotions or other trading actions (methods) to sell their products.
Step 2
Create your business model that will be different from the players already on the market. Use the information and data that you have collected during market research, companies and promotions. Choose only the most working methods and then transform them into a new direction, creating your own unique product or service. A successful franchise becomes such when a business offers the market something new, but at the same time similar to what has already been presented, for example, McDonald's
and any other similar eateries.
Step 3
Find sources of funding to build a franchise. You can use the business loan option. It is, of course, risky, due to the potentially large interest, but many entrepreneurs start with it. In some cases, you can expect to receive grants from the government or from individuals / entrepreneurs who support the industry. Expect to receive anywhere from $ 500,000 to $ 1,000,000. Everything will depend on the size of the business. But these numbers for a franchise-type business are minimal.
Step 4
Prepare a business plan. It should be done in great detail, pointing out what the difference is between you and your competitors. Also, the business plan is required to provide an estimate of the potential profit and a plan for launching the franchise. Also attach to it a copy of the market and competitor research you have done before. This will be another guarantee that you will be provided with start-up capital. It is very important for an investor to see the benefits for himself from the future enterprise.
Step 5
Collect the entire standard package of documents for starting a franchise business. Obtain permits from all authorities to open an enterprise (housing office, fire department, tax office, etc.). Obtain written permission from the executive authorities in your area of residence. Invest the funds received in building a business, training system (training) for personnel, marketing and product promotion.
