By licensing or franchising your business concept you are sharing it with other professionals, and in this way you sell access to your idea, your business, which IS growing the business, with or without an existing stream of clients. Business owners can market their brand in surprising ways across a regional or international scope and many struggling businesses out there with viable and exciting products or service offerings can enter franchising if their concept is worth sharing and buying into.
Consider the following points if you are thinking about ways to share your concept with others, which means growing your business:
- Can your business succeed for investors in different areas? This is one vital point to consider because an excellent concept on the wealthy coast of southern California may not work in a smaller city in Kentucky. Each and every region, from states in the US to countries around the globe, has its own population of potential consumers, its own market, traditions, needs, and concerns. Does your concept work where you plan to send it and will your concept work outside of the confines of a certain regional dynamic?
Sharing your idea is one thing. Sharing it with anyone without considering whether or not this is actually viable and in the best interests of your business and each investor is another. Practice prudence and perform the necessary research that applies to your situation before starting your franchise endeavor to gain the greatest amount of insight possible. Talk to other franchise owners and research the market and industry in which your business sits, and how it is performing in certain areas.
- Can your business operate on a local level with success and is it facing any major corporation competitors? The ability to operate a business and sell its model on a local level does not necessarily mean it cannot succeed internationally or across states. These questions simply involve considering whether or not your idea would or is competing with serious major players on a larger scale, which could make franchising your concept a real challenge and short lived. Is your concept one which can thrive through the franchise system because of investors like you who are interested in running their own business in a sustainable industry without excessive competition issues?
If you realistically observe that your industry is dominated by smaller scale operations, or hardly any at that, then franchising your concept can be a viable and realistic marketing strategy to grow your business. It is quite possible that a small business owner looking into franchising is not completely aware of just how developed their industry is in certain markets, whether in other cities, states, or countries. Exploring the status of your industry and the number of thriving businesses that already call it home is in order prior to making any serious commitments to franchising models.