Issa Asad Explains 4 Reasons Why You Can Franchise Your Business
Issa Asad Florida
Joe had a great belief in an entrepreneurial idea of a frozen yogurt parlor. In 2011, Joe quit his job, used his family’s savings to open up Joe’s Fro-Yo. After three years of hard work and commitment, he gathered a lot of knowledge about a startup business, but the business gave positive returns. Currently, it is doing well and last year he opened another store. Joe and his wife are now pondering on whether it’s high time to enter into franchising.
The couple understands that the endeavor is a risk but so was the initial move Joe took in investing the family’s savings.
“It is hard to escape from the idea of franchising the business since the anticipated returns are enormous,” said Issa Asad Florida entrepreneur and businessman since 1996. Mr. Asad is the CEO of Q Link Wireless and Quadrant Holdings, located in South Florida. He is also the author of 4 e-commerce and marketing e-books that can be purchased on Amazon.
It would be a bad choice not to take the booming business to the next level someone would think. Unfortunately, the perceived returns might not be achieved when turning a prosperous business into a franchise. Entrepreneurs, like Joe, need to understand the risks involved in taking such a move.
Here, Issa Asad Explains 4 Reasons Why You Can Franchise Your Business:
1. Can your business be replicated?
Before Joe can venture into franchising his successful business, he has to check whether the company could be run from anywhere. Many upcoming successful business people do not understand the value they add to their businesses. But for a company to translate into a franchise, it has to endure the daily challenges even without the founder’s personal touch.
2. Can you clearly tell what your brand is?
Starting a franchise requires more effort and commitment than a mere business concept. Entrepreneurs should understand and articulate the whole plan of their franchise. Unlike small businesses, franchise requires better organization, systemization, excellent communication and good methods for franchisees to attract many customers.
3. Are you willing to work with other experts?
Although Joe is a skillful salesperson, he has to do delegation of duties as a franchisor. Joe needs to involve other franchisees since the work involved cannot be done by one individual. It involves keeping your fellow experts on the same page so as to create a cohesive brand. Once Joe’s Fro-Yo is taken to the next level, it will need experts with knowledge in different fields like advertising, public relations, equipment and design, training, graphic design and legal issues. Joes has to choose the best team and give the power to others so as to perform the tasks required.
4. What is the franchising cost?
Just like starting Joe’s Fro-Yo, there are risks to take in franchising the idea only this time Joe faces the risks in a greater proportion. A lot of money is required to make the move and the willingness of losing it all. Entrepreneurs need to have partners to invest in their business and a personal financial input to the business. A lot in monetary value will be required for brand development, experts’ compensation and dealing with legal fees.
Many people focus on the potential earning and overlook the potential loss. Franchisees, therefore, need to have the abundant cash flow to kick-start their business.
