Why Franchise?

 


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A lot of businessmen who has managed to make their business a stable and profitable one reaches that point where in they ask themselves, what next? Ever looking forward and anticipating change, a stable and profitable business enterprise does not represent the end of the road to these kinds of people. So how exactly do you bring your business to that next level? How to you compete with businesses that are more stable, have a lot longer track record, are more profitable, and a lot bigger than yours?

To do this you will definitely need to risk a lot of money. Expanding companies have to put up the infrastructure and equipments to handle the expansion and while some stout hearted ones go ahead and toss the dice. The monumental outlay of cash, sky rocketing amount of debts and financial obligations scares off a lot of other businessmen daunted by the risk.

For some, the answer lies in opening their company stocks to the public. Selling off some of your company’s stock means that a lot of extra capital that you can utilize for your expansion. Moreover, the risks here are transferred to those people who have purchased your stock. If the ship goes down, they go down as well. On your part, at least you are not up to your eyeballs in debt. The bad news for this expansion method is that you have to give up some degree of control over your company’s affairs. Take this one step further and you also risk your company by hostile takeover.

It does not even end there. The problem of money is just the tip of the iceberg. Expanding companies also faces the problem of manpower. Of course, you still have to find qualified personnel to fill up your new office and with the increasing competition between big companies, what’s to say that your new manager will not be pirated by your competitor a year from now?

Time here is also not your ally. You may live to see your company expanding to five to ten outlets before you die but if you dream of making your company a household name with an office in every state and every country, you may die a disappointed man.

In this regard, to kill three birds with one stone, franchising is perhaps the best solution. Open your business to franchising and you transfer infrastructure costs, equipment costs and financial risks to your franchisee. A franchisee will also be your most loyal man as his interests and yours are basically the same. He making a lot of money will mean you will be getting the same and with hundred of others just like him; you just might live to see your company name on almost every place you go.

The Franchise Guide writes about Franchises, Franchising and Franchise Opportunities .

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