You’re sitting with your Houston business coach talking about your growth when an idea hits you.
“With the way things are going, I could franchise my business!”
If you’ve been wondering how to franchise your business and have questions about the best way to start, you’re in luck. Below we have the essential steps on how to franchise your business and how a Houston business coach can help smooth out the process.
Write down everything: from how you hire, to the company culture you want.
1. Write an Operations Manual
The first and foremost thing you must do when starting to franchise your business is to think about how it runs. What are the daily, weekly, and monthly processes? How do things work? Write down everything, from how you hire and train, to how you like to foster company culture.
Getting everything down on paper now in an operations manual will not only help you think through the important aspects of your business, but it will also make things a lot easier down the road when you officially franchise your business. It takes some time, but it is worth it.
Protect your intellectual property with an attorney.
2.Get Expert Advice from an Attorney
The next step to franchising your business is to full out the Franchise Disclosure Document.To assure there are no problems with this document, hire an attorney well versed in franchising law.
They’ll be able to walk you through how to fill the document out, they’ll help you figure out how to protect your intellectual property, set franchise pricing, and create a working franchise agreement.
A work franchise agreement is almost as important as your operations manual. It lays out the product and brand being franchised, how branding should be handled, and the support systems you’ll have for the franchisee.
One thing to remember about franchise agreements is that their requirements differ from state to state, and the type of business being franchised. Having an attorney help you write these agreements will make their writing smoother, faster, and give you piece of mind that nothing is amiss.
Your franchisees are an extension of you and your brand. Choose franchisees wisely.
3. Know Your Deal-Breakers
It’s important to remember that just like the people you choose to become a franchisee are an extension of your business, they are also an extension of you. Don’t go with the first person you come across with working capital.
Be a little selective in your interviews and know your deal-breakers. Do they have to have experience in your business? Do they have to have managerial experience? Could they be a good fit for your business?
It’s also important to go with your gut. If you’re sitting down with a potential franchisee and something doesn’t sit right, it might be best to say no and move on.
Make sure your franchisees are following the guidelines you set.
4. Set Clear Guidelines and Enforce Them
Your brand is who you are as a business. As CEO of BungoBox, Tom Cannon told Forbes.com, “Your brand represents your culture, your beliefs, and your attitude toward your customers.”
Starbucks is a clear of example of this. While it’s not a franchise, every Starbucks location is an extension of former CEO Howard Schultz. Each location follows the same guidelines and values he started with and while he was CEO he enforced them.
In fact, when he realized that the stores were not living up the standards he set, he temporarily closed thousands of stores for three hours to retrain his employees on how to treat their customers and coffee with same love and respect he had for them. If they weren’t doing their work with love and respect, then they weren’t working.
And you’ll have to do the same for your brand. You can’t just choose a franchisee and let them run, you have to check in once and a while to ensure they’re following the guidelines and operations manual you gave them. It’s how Starbucks reinvigorated itself and it’s how you’ll keep brand going in the future.
Your first franchise locations should be far enough away from each other so they can’t compete, but close enough to check on.
5. Choose “Goldie Locks” Locations
One thing you should do when you first start franchising your business is start small. Choose “Goldie Locks” locations. These locations are “just right.”
They should be close enough so you can easily check on them, but far enough away that they don’t compete with your original location. As your number of franchisees grows and you get ready to expand nationally, or internationally, be sure to pick locations with access to an airport.
This will make it simpler to check up on them and make sure they’re doing well.
Your business coach will give you the emotional support you need.
6. Talk With Your Business Coach
Franchising your business can stressful thing and you need the right people in your corner. Not only would your Houston business coach take the time to talk out all your concerns, they’ll have experience in franchising business coaching. This is coaching tailored to business owners like yourself who want to grow in new ways but need emotional support and assurance to keep going.
Planning your growth gives you insight on what’s possible.
7. Plan Your Growth
In the Howard Shultz book, Onward: How Starbucks Fought For its Life Without Losing its Soul, Howard cited improper growth planning as one of the main reasons he returned as CEO and briefly closed his stores. He was so focused on international growth that he failed to see the problems growing in the stores he already had.
That is why it’s so important that you plan out how you’d like to grow as a business. It allows you to get a real and factual sense of what’s possible and what could be possible. Do you want to grow internationally as soon as you can? Or do you want to focus on your national stores first?
Planning this all out before hand will help you decide what growth track is best for you and your business.
As your Houston Business Coach is there for you, be there for your franchisees.
8. Build a Support system
Just as your Houston business coach supports you, you should support your franchisees as they start up. Celebrate their milestones, call or seem in person when they need help, and check in with them to see how their doing. Not only would that give them a chance to ask questions if they have any, it will give you a chance to see how they’re doing. Are they using the guidelines you set up? Are they hiring the right people? Do they understand your brand and what it stands for.
You can check on them a little less once they start to reap the rewords of their hard work, but for those first crucial months, checking on them could make all the difference and really help them started the right way.
Get Franchise Business Coaching from Business Coach Doug Winnie
If you’ve been thinking about franchising your business, call Houston Business Coach Doug Winnie. Doug Winnie is an award-winning business coach, business accelerator, and team trainer in Houston, TX. In addition to personal and franchise coaching, Doug Winnie has many classes to help foster team development, sales, origination, management, and leadership. Call (713) 936-3814 or click below to improve your business today!
How to Franchise Your Business | Business Coach Doug Winnie – Houston, TX