Are you looking for ways to stand out and stay ahead of your competition? Franchising may be a strategy. Yep, that’s right franchising your business can actually help you beat your competition. How exactly does a franchising strategy actually work? Easy, let’s take a minute to explore it.
Opportunity for Accelerated Growth
Saturate the market. A concept that sounds great but hard to do if you operate just one or a couple of locations. One of the best ways to beat out your competition is to flood the market with your name. That way your name is synonymous with the services or products that you offer. Unless you are well-funded this is hard to do by yourself. When you franchise your business you leverage other peoples’ time, money and resources to duplicate your business in their market. This automatically expands your brand quicker into markets you could not otherwise reach yourself.
More than likely, your competition may be limited in their growth. To grow quickly and expand into other markets they may be forced to seek out a partner or bring investors into the picture. Next thing you know the value of your competitor’s company may become diluted because they brought on too many additional people (shareholders) into the company. Now their growth is based on the resources of their partners or investors and how much equity they are willing to give away.
When franchising your business you have an edge over your competitors because you are no longer handcuffed by your own resources or dependent on partners or investors. You can expand quicker into other markets and become more of a brand, which ultimately drives more sales and eventually leads to market saturation (see our article to learn more about how franchising can be an unlimited portal for growth).
A Culture of Like-Minded Individuals
Have you ever heard the saying “many heads are better than one”? When going at it alone, your business grows at the pace your business dictates. New ideas or improvements come along when time allows. What if you had a situation where nuances were discovered regularly? When you have a pool of like-minded individuals who have skin in the game and are motivated to be successful (in this case your franchisees), greatness tends to happen in the form of new ideas, discoveries, methods and techniques that inevitably enhances your business (read about us and our President’s experience working with large franchise brands that experienced such greatness and how it led to the birth of The Franchise Maker). It is not uncommon for franchisee operators to bring such value and contribute to the entire system.
Your competition, on the other hand, is on their own and does not have the talent of their franchise operators to tap into for ideas to enhance their business. Even if they brought on a partner or an investor, as mentioned above, it is unlikely this will bring as much value as an entire group of franchisee operators who are out there working in the business on a daily basis thirsty to make money and grow their business.
Increased Buying Power
Franchising can provide you with credibility in the marketplace simply because the more locations you have the more people are benefiting from your services or products. Now that you have more visibility in the marketplace, you have increased your credibility further validating your business relationships with vendors. This translates into stronger buying power. Your entire system will now benefit from discounted rates on equipment, products and supplies giving you leverage over your competitors who are not able to get the same pricing. Besides buying power there are many other benefits of franchising.
The bottom line is that YES franchising could be a solution to beat your competition. Franchising gives you the ability to expand into other markets quicker, leverage the talent of other people, provides a forum for fresh ideas that could enhance your business and increase your buying power. All of which leads to more growth, branding and expanding your profits. These are just a few nuggets, there are many more. Call us at 1-877-615-5177 to learn more and find out how franchising could help you beat your competition.
- Why Franchise Out Your Business
- What Are the Steps to Franchise
- What’s Your End Game: Franchising May Play a Role
- What Makes Me More Money, Franchising or Opening Other Locations?
- Can I Franchise and Open Locations Simultaneously?
