Growth Club
1851 Growth Club
When is the right time to grow your franchise?
Timing is everything in life, including when it comes to expanding your business.
Nobody gets into business hoping for mediocre sales and so-so interest from consumers. Even when you’re first starting out – when your primary goal is keeping your head above water - the ultimate dream is becoming successful enough to expand your business.
This goes for all business owners, but especially franchisees. After all, simple math dictates that the rewards you reap as a successful business owner can be multiplied by owning more than one business. Franchising makes achieving this goal that much easier by giving you a detailed framework to follow.
However, as with most things in life, timing plays a crucial factor. Making the move to grow your franchise investment too soon could lead to any number of headaches, and waiting too long could leave you on the outside looking in while competitors make use of your target market.
The trick is to determine when the best time to grow your franchise is, then put this information to work. The following are clear signs that the time may be now:
- You understand your target market: As an existing business owner, you should have insight into your local market. This includes everything from details regarding your primary customers to whether demand is high enough to support a multi-unit approach. Beyond business, you should also have a clear grasp of factors like local real estate costs, tax laws and any other details that may affect your ability to get another business up and running.
- Your current business is well-positioned: You can’t very well take on more responsibility if your current business is barely staying afloat. Even if the market is ripe for expansion, you must first make sure your own house is in order. What kind of cash flow are you seeing? Do you have a large enough staff? Are you able to rely on key employees to handle important tasks? The answers to these questions should give you a better idea of whether your business is a well-oiled machine or requires further tweaking.
- You have the time and energy necessary: Expanding your franchise reach isn’t a simple matter of snapping your fingers. It takes hard work, and you have to ask yourself if you’re ready to handle both greater responsibility and more daily tasks. However, if the local market is ready, your current business is well in hand and you have the chutzpah to take on more work, there’s no time like the present to get started.
