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Looking to expand? Six tips for franchising success

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Franchising can be a viable alternative to the traditional means of growth for a business. If you’re a small business looking to expand your exposure beyond your location, it requires less capital and less hands-on management than opening chain stores.

Kenton Campbell, founder and CEO of Zarraffa’s Coffee, knows how valuable franchising a business can be. In 1996, Campbell opened his flagship store in Southport on the Gold Coast. There are currently 43 franchised Zarraffa’s Coffee stores sprinkled along the south-eastern coast of Queensland, with even more on the horizon.

Campbell shares his secrets on how to franchise your business.

1. Consider the pros and cons

For Campbell, the decision to franchise was made easy when he realised he could expand with limited capital.

“It gave me options,” he says.

Franchising allows a business to open chain stores and distribute with minimal direct investment. However, this approach may not be ideal for every business. Before implementing any change in business model, consider all of the advantages and, more importantly, disadvantages of franchising the business.

2. Learn about the business

“I dove into the franchising sector and I learnt everything I could and I listened to anybody I could that had been successful in franchising, especially if it was in the retail sector,” says Campbell.

He also sought assistance from the Franchise Council of Australia, who proved to be invaluable in providing support and advice.

Look at the available resources and seek out help from those who have achieved success to ensure you aren’t blind to the potential pitfalls.

3. Look to alter systems, rather than the business model

Campbell advises franchisors to look at it not as a business model, but rather as a system for growth. A business without a strong business model will fail, regardless of how many chain stores it has.

“It’s systems that will grow a business model and a brand,” he says.
4. Invest in training

To get the best out of franchises, management needs to invest in training and ensure there are systems in place to keep the process constant and continual.

“We continually put the time and energy into retraining and keeping a standard that is exceptional,” says Campbell.

Training is particularly crucial if the business’ industry depends on casual employment.

“Casuals go on to be doctors, lawyers, dentists and accountants – they don’t stay with us forever – so there’s always the need to retrain,” he says.

Campbell notes that the average franchisee is with a business for 4.5 years. With such a high turnover, continual training is absolutely crucial.

“Any business that’s not doing that is a business that isn’t evolving and isn’t changing and is really going backwards,” he says.

5. Maintain consistency

“We do not and will never substitute what we believe is an exceptional product and service techniques for trying to get a monetary advantage,” he says.

Ensure that what is successful in the original business translates to all subsequent franchises. Employ systems to maintain consistency across the board.

6. Own your area first

The key to expansion is ensuring you have an impeccable business first and then replicating that elsewhere.

“Own your market first – if you can’t own your market, then you don’t deserve to have any other,” he says. 

Campbell advises small business to analyse what you have first, before growing for the sake of it. With a successful business, the possibilities of growth are endless through franchising.

So, if you’re looking to work on your business rather than being stuck in it, book in for a complimentary business assessment today with Switzer Business Coaching

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Wednesday, July 21, 2010

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