Strategies For Your Franchise Growth Plan
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When you're setting up your initial franchise, it's essential to develop both a short-term and long-term growth plan to stay on track. Many franchisors make the mistake of not identifying exactly what they would like to achieve.
Content:
When you're setting up your initial franchise, it's essential to develop both a short-term and long-term growth plan to stay on track. Many franchisors make the mistake of not identifying exactly what they would like to achieve. Making a clear map or plan of objectives over the course of one year, three years, and five years can help keep the business and complete business plan on track. A five-year plan that is focused on accelerated growth may not always be the right choice for the business model or the system. On the other hand, a one-year aggressive franchise system could be just what a business needs to get up and running.
Goal-oriented planning is an important part of successful franchising, because it allows the franchisor to set up a series of goals to reach the final destination. Being clear and specific about goals can make them achievable. Progress can be tracked, and mistakes are managed more efficiently along the way with a clear-cut objective in mind. Depending on the type of growth curve expected, a successful franchisor can activate a successful plan. This in turn can set up a timeframe for achievement; franchisors can be free to request capital for growth as they need it, and reduce risky ventures in the process.
To speed up growth, a franchisor has a few options. Franchisors can establish franchise operations in multiple locations simultaneously, and begin paying royalties early to avoid adding up costs later. Conversion franchises are set up in this way, where the already established businesses become franchises and attract new revenue. Accelerated growth using development franchising involves a complete opening schedule of additional locations. This involves a greater risk, but also a higher chance of large-scale revenue from royalties and other fees. Franchisors must weigh the costs and benefits of each move, how much capital they are willing to invest, and create sensible timeframes to achieve their objectives.
Expanding a franchise business has its risks and benefits, and doing it successfully can be challenging. Franchise sales are a function of marketing, so an aggressive marketing and market saturation initiative may lead to long-term gains for the franchisor overall. However, without a plan of action and goal-oriented strategy, the system can spin out of control and leave the franchisor with limited resources to get back up and running. Strategizing a successful franchise growth plan involves some clear goals and outlining priorities, costs, and benefits of each move.
Author: Tristan Andrews
About Author:
Tristan Andrews writes useful articles about franchises. Discover and explore the world of Franchising. Find out how owning a franchise can expand your financial horizons at http://www.franchise-guide.org/Random related phrase:
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