At its core, a franchise is a model that promotes the ownership of several units. You invest in a brand that you feel will last.
You adhere to the brand's systems and benefit from the support it provides. Then you resize and repeat the procedure with each additional site until you believe you have grown sufficiently.
But what if the franchise brand's growth objectives do not align with yours? Or what if the market you intend to enter is already oversaturated?
You start the process all over with a different brand.
If you want to diversify your franchise portfolio, the expansion of many brands may appear difficult at first. However, you may be inspired by the prospect of working with new people, learning new systems, and confronting new challenges.
In reality, the method is the same regardless of the brand you choose. Growing your portfolio with various brands is frequently the most effective strategy to achieve your growth objectives in a reasonable amount of time. You just need to know what to look for and have the necessary resources in place.
1. Find Your Happy Place
When considering adding another brand to your portfolio, you need first to analyze yourself. Know what you're strong at and stick to those environments.
When you look at a strong franchise portfolio, you will see that virtually all of the activities are with brands that have basic operations and a comparable footprint. This is not by accident.
In business, we believe it is best to focus on what we do well. Simple franchise concepts with a limited footprint are not only easier to maintain, but they also have the ability to develop at a quicker rate with devotion and effort. Remember to discover your comfort zone and begin expanding from there.
2. Collaborate with the Right Brand
Knowing what to search for is essential when there are so many franchise concepts to pick from. My advice is to keep an eye on established franchises with strong leadership and consistent store growth.
Why? Because there is experience and history, as well as a drive to develop. When a brand is already successful but continues to make positive changes to streamline operations and remain relevant, it demonstrates a strong commitment to growth.
Strong brands have the ability to provide the best prospects for significant and scalable growth while concentrating on improving the experience of their franchisees.
3. Think with Your Calculator, Not Your Heart
When deciding on a brand to develop, numbers should always play a role. So I am a big believer that business choices should be made analytically rather than emotionally.
One of the most common errors made by first-year franchisees is purchasing a basic franchise because they enjoy the product. Take the time to read the franchise agreement, examine the data, and ensure that it can help you make the most of your investment before joining a new brand.
4. Hire the Right People
Hiring talented employees that you can educate, train, and develop is the key to success for multi-unit owners. With each brand you add, your primary duty shifts to building excellent managers who can work for you.
Good employees, in general, do not work for poor supervisors. Personally, I believe in nurturing potential from inside the business. Bring individuals into your businesses, train them on a part-time basis, and build loyalty and trust.
The store managers should be someone you trust and who demonstrate a genuine dedication to their positions while being motivated to learn and grow on a regular basis. Therefore, having folks like them on your team makes your operation run much smoother.
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