Brian Duckett explains that franchising can be safest and most effective way for smaller businesses to grow.

In today’s crowded business environment, companies are finding it increasingly difficult to grow. At present, the situation is made even more difficult due to the uncertain economic climate in the UK.

If you have a sound plan and wish to expand your business, however, you need not put your plans on the shelf.

Many people dismiss expansion proposals when the economy starts recessing, but contrary to popular belief, it is still possible to continue with proposed business plans and achieve your goal of independence or expansion.

All business is potentially risky business and invariably those who succeed are usually the ones who take the most gambles.

Subsequently these individuals have built up highly rewarding businesses by operating differently to the rest of the crowd.

In no way does it have to be a ‘gung-ho’ approach. Teaming up with a well-structured system as a franchisee or taking on the enthusiasm of a franchisee and becoming a franchisor, is a much safer option.

Franchising is a tried and tested way to grow successful businesses regionally or nationally. Many entrepreneurs have even used franchising as a strategy to achieve their international brand expansion plans.

Clones of a proven business 

What’s more, banks traditionally prefer to lend to franchisees of respected franchisors, so borrowing money to set-up can be much easier, even in turbulent times.

In layman’s terms, franchising is a relationship in which one party allows the other to operate clones of a proven business in return for initial and ongoing fees.

Business-format franchising involves duplicating a successful business by teaching others how to operate it.

Those being taught, make their own financial investment in opening the unit, while those doing the teaching generally own a brand, which they want to grow and protect. Therefore, it is in both of their interests to work together and operate profitably.

Franchising is continuing to grow as a method of doing business around the world, and just about any business that operates through a branch network could benefit from considering franchising as a development option.

There are successful franchisors in many business sectors ranging from hotels, car-hire, restaurants, real estate agents, printers and sign-makers, to children’s education, beauty parlours and elderly care.

Business system 

So it is fair to say, that in one way or another franchising can work for your business, regardless of which industry sector you operate in.

You may think that franchising your business will be a painstakingly long process which, as a small business owner, you simply don’t have the resources to complete.

The reality is, however, that the franchise system can be implemented successfully and efficiently by following a few straightforward steps.

It all starts with a proven and successful business system, which can be easily learned by other people, operated in outlets and be simply acquired and converted.

It must also be profitable enough for both parties - the franchisor and the franchisee - to make a good return on their investment. A recognised name, protected by the relevant trademarks, is also a pre-requisite.

The business system must be supported by excellent training facilities and management reporting processes, which make it easy to track progress and put things right if they start to go wrong.

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