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In about 850,000 franchise installations in the US, about half is operated by owners with more than one place-multi-unite franchise. These individuals have to invest important capital, go through extensive training, launch business, tolerate growing pain that essentially come with expansion and growth and reach the breachwane point. Only then can profitability enter the picture.
It is completely normal to think about expanding at a time in this way, yet many still hesitate. If some figures are going on so well, then why rock the boat and put the entire operation in financial risk? Other buses are materials to sit back and maintain a single unit establishment, where they can focus 100% of their time remains smooth. Without a doubt, the decision to expand into several units makes some serious thinking. But for those looking for the elusive assurance, here are some positive indications that you should consider on multi-unit expansion.
Connected: Consider becoming a multi-unit franchise operator of a new brand? Here you should know what first.
Be honest by yourself
You need to be completely honest by yourself before you can consider expanding your single unit into the multi-unit empire. As, what are you really even Thinking you are? In such a time, it certainly does not hurt to receive a fair opinion, which can easily come from your financial planner or accountant – provided they are tied to the Fidusari rule and are your best interests.
Open the books and make an accurate review of your financial performance and determine what you are getting – and possibly – for the benchmark success of the franchise.
Connected: If you own more than one franchise unit, they are brands to investigate
Labor and demand
Two factors that will play an important role in your decision are your labor status and a local market for your product or service. In the survey after the survey, several top complaints of the franchise owners are that they do not have a reliable or stable task force. Find out, this Is These days it is difficult to get good help. If you are lucky enough for an excellent general manager at your current location, will you be able to find an uniform artist for the new? Should you consider dividing your employees between two places and hiring infils? In any way, it can be a big risk.
Then there is a demand for local market to consider. While the business can be a boom in your current location, will the additional area have a demographic makeup the same? In an ideal world, demand may be the same, but this possibility will not be the same.
Connected: This is the major factor to hire a harmonious team
Benefits of multiple ownership
When you own more than one franchise location, everything multiplies – your investment, your employee, your inventory, your marketing expenses and, hope, your lower line. This is the final risk/reward condition, so you have to take a strategic and alert approach to the scale properly. Now, take a look at the possible benefits coming with multi-unit ownership:
- You get many revenue currents, which can increase your income and money a lot
- At the same time, you can spread your fixed costs in many places
- You can interact on better terms with wholesale supply orders between your vendors and suppliers
- Your visibility in the local market can also be doubled or triple, causing it to become difficult on the competition
- You can bring diversity in your operational risk between many places
- Your total assessment for a final sale will increase greatly, making an attractive exit strategy
- You are doubling or tripling your ability to make long -term wealth
You must have enjoyed reading through each of the benefits, but before you go out and decide a grain about expansion, you may want to consider a practice you held for the first time: verification. As long as you are not the first owner between an emerging brand, it is highly likely that Any Your franchise network has a multi-unit owner. So, reach them and read a good on your own multi-unit expansion experience. Find out where hidden damage lies and plan to reduce any problem when you eventually decide to double or trip to your investment.
Above all, one blow or two is expected. The multi-unit expansion rarely stops without any bottleneck. If you are sufficient to consider a step that can double or trip your business, always proceed with caution. Because the last thing you want to put on your hands is two struggling places, as opposite to a single establishment that was prosperous.
In about 850,000 franchise installations in the US, about half is operated by owners with more than one place-multi-unite franchise. These individuals have to invest important capital, go through extensive training, launch business, tolerate growing pain that essentially come with expansion and growth and reach the breachwane point. Only then can profitability enter the picture.
It is completely normal to think about expanding at a time in this way, yet many still hesitate. If some figures are going on so well, then why rock the boat and put the entire operation in financial risk? Other buses are materials to sit back and maintain a single unit establishment, where they can focus 100% of their time remains smooth. Without a doubt, the decision to expand into several units makes some serious thinking. But for those looking for the elusive assurance, here are some positive indications that you should consider on multi-unit expansion.
Connected: Consider becoming a multi-unit franchise operator of a new brand? Here you should know what first.
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