Business Expansion Through Franchising & Partnership
Business Expansion Through Investment in franchising
Investing in the franchise system is an interesting path. For this, your company needs to have standardized and well-defined processes, in addition to being a recognized brand, in order to attract the attention of investors. In this way, the entrepreneur starts to help new entrepreneurs to manage their businesses.
To give franchisees greater security, it is not enough to have a brand. While investors accept the risk of creating a unit and bear the costs of doing so, it is important for the franchisor to provide training for the operational base of the business and define in the contract what will be the responsibility of both parties.
In addition, to become a franchisor, it is necessary to follow a set of rules defined by law, which regulates the franchising system. It is also essential to prepare the business for the new system. The entrepreneur needs, for example:
- Map processes of all operations that will be implemented in the franchises;
- Define inventory control;
- Determine production methods;
- Establish how franchisees will be selected;
select suppliers; - Calculate franchise, advertising and royalty fees.
Business Expansion Through Partnership
Working together with another company can be a great and inexpensive way to expand your business. It is a way of faster growth, since you will have access to your partner's customers, adding a qualified audience to your chart.
The partnership can solve the weak points that your business may have, in addition to complementing its services and products. Therefore, this strategy has the potential to increase the quality of your service. In this way, both companies win.
But how to find a good partnership? It is important to check in which aspects the businesses complement each other, as this has to make sense to the customer. For example, a bike company partners with an agency that organizes trails, competitions and circuits for cyclists, among other athletics modalities. That combination would be very clear to the customer, wouldn't it?
On the other hand, a beauty salon would hardly partner with a pet shop, as it would be more complicated to reconcile the two segments.
Other factors should also be considered, for example: is the company you want to partner with suitable? Is there synergy between the two businesses and entrepreneurs? Does it have enough productive capacity to cope with increased demand? These issues are important as they may reveal some potential negative impact on the business.
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