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When you think of franchising, you likely imagine large corporations that have thousands of locations throughout the world. Even a small business can expand through franchising, though. Expanding your business comes with some risk no matter how careful you are, but the following checklist can help you determine if the risk is relatively low.
Reevaluate Business Plan
The first question you need to answer is whether your business concept is able to be replicated well. Does it need your own personal touch, or can it stand on its own? In order to have a successful franchise, your business model needs to be something other business managers are drawn to and can implement well, from daily operations to social media presence.
Consult Experts
There are many technical and legal issues to consider when deciding to expand your business with a new location. Set up meetings with experts in franchise law to ensure that you are in compliance with state and federal guidelines. Read the current market research in your industry to gauge whether or not there is a market for your business expansion.
Check Budget
Expanding your business in any way takes extra revenue, so it’s vital that you evaluate your budget before making the leap into franchising. The last thing you want is to get halfway through the process of expansion and have to shut down or delay because you run out of money.
Explore Other Options
Opening another location is a big step. Before you make the decision to do so, look at other expansion options. You can introduce new products, market to a new demographic or look for ways to increase your online sales.
Franchising is an exciting way to expand your business, but it takes a lot of planning to make it successful. Work through the process thoroughly so that it’s profitable for you.
