There are some entrepreneurs who start their business, even if it is very small, already thinking about a franchising it all over the country someday. Indeed, it’s very good to think ahead, and yes it looks pretty good in the business plan if you are looking to find an angel investor to invest in your first business, but it’s certainly not as easy as you might be led to believe.
You see, I am retired franchisor founder, and in my retirement I often give speeches at seminars on this subcategory of franchising. In my sessions I talk to many small business people, and future entrepreneurs. Not long ago, someone came up to me and asked; “should I set up my small businesses as if I want to franchise it someday?” The answer is yes, but let me explain the rationale to this answer.
First, I concur with Michael Gerber who wrote the book called; “The E-Myth” when it comes to this subject matter. That is to say I believe every small businessperson should set up their business so it can run even when they aren’t there. They need to set it up with a strong management team, operations manual, and put systems in place so that everyone knows their job, knows what’s expected, and is held accountable for their work.
You should do this anyway, even if you never to franchise your business. And if you do decide later to franchise your business and find $1 million worth of working capital for the first five years or earn that million dollars in your current small business then can franchise, then you’ll be glad you set up your business and systematized it. Indeed, I hope you will please consider all this.
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