February 13, 2024

How SMB Helps Small Businesses Become Big Businesses!

Turning a small business into a big one is a thrilling journey. SMB understands the dreams that drive entrepreneurs, and we are here to guide you through the process of franchising. Here are six essential questions that aspiring franchisors must answer when they consider franchising as a strategic growth option.

Do you have solid operating procedures that are easy to follow?

One of the key factors in successful franchising is having well-established operating procedures. Your business should be structured in a way that allows you to step back from day-to-day operations while still maintaining control. This not only ensures a smoother transition to a franchise model but also allows franchisees to replicate your success with ease.

How profitable is your business (can franchisees make money)?

Rethink your financials from the perspective of a franchise owner. When franchising, the owners who join your brand will pay a portion of their revenue as royalties to you, the franchisor. Ensure your franchisees can earn a reasonable profit after they pay royalties, brand fund contributions and other fees. If your model needs improvement, you may want consultation to evaluate where you can be more efficient and generate higher margins.

Is branding consistent and recognizable in the local market?

Consistency is key to building a strong and recognizable franchise. Before franchising, evaluate your brand presence in the local market. Ensure that your branding is consistent for each customer experience, online, in person and via phone or even text communications. If you have established trust, a great relationship and a memorable image, loyalty is likely to follow in all new markets.

How big do you want to get?

Define your growth ambitions clearly. Whether you aim to become a regional brand or expand nationally, having a good idea of your growth goals will help launch your franchise. Consider the scalability of your business model and the potential market demand as you plan for expansion. Even if you change your strategy, knowing where you want to grow helps stay focused on the future.

Where do you want to grow?

Identifying target markets is one of the steps you will want to take in franchising your business. Start where you are; then consider regions with growing demand for your products and services. Understanding what works for consumer behavior based on your founding market demographics first, can help you grow in these new markets. Keep in mind, you will help franchisees tailor the brand strategy for optimal success in their area.

Are you ready to take the next step?

Franchising requires resiliency, commitment, determination, and a willingness to invest time, money and start an entirely new business. Start with that mindset and evaluate your resources, systems, and goals as you decide to transition your focus on franchising.

The steps to turn a small business into a franchise brand takes time, energy and focus but you don’t have to go it alone. Before you leap, know that the SMB Franchise Advisors team and countless vetted vendor partners will be ready to guide you on this exciting journey. As you set your sights on building a successful franchise trust the relationships to help you achieve your dreams and goals. Let SMB be your guide in preparing you to launch and grow your franchise brand.