Building your own business from the ground up is no small accomplishment. However, 30 percent of new businesses close up shop within the first two years and only 25 percent stay open for more than 15 years. With numbers like those, an entrepreneur has to consider each move carefully if they want the fruit of their labor to not only survive but thrive.
But once the business is running smoothly and is popular among consumers, an ambitious entrepreneur might be tempted to market their business and establish other locations. As lucrative as such a venture might be, the business must have certain features that indicate it has what it takes to expand. If it has the correct properties, companies that help develop franchises can assist the owner in making their dream a little bit bigger.
Replicability
It should be possible for people interested in opening their own branches of the business to replicate the operating processes and services provided by the original location. Because a lot of these smaller branches will be running on their own capital for a while after opening, they should be able to learn how to run the business effectively and generate profit with three months. A business owner can ensure this by thoroughly documenting how their first location succeeded and which portions of their operating process are critical to its survival. The business plan given to subordinate branches must also be able to adapt to the different backgrounds and markets of the new locations.
Marketability
For the business’ satellite locations to survive, they have to be profitable. In today’s crowded and sometimes oversaturated market, the business should stand out and offer customers unique approaches to solving their problems or providing their desires. It’s not just customers that the business should intrigue. A unique business model that can tap into a fresh market can draw in investors and their capital. With infusions of resources, it becomes easier for the business as a whole to grow and develop beyond its boundaries.
Easy to Support
Despite being marketable, a satellite branch of the business could fail if the managers or staff are inadequately prepared for the rigors of running the location. This could also happen as the result of improper training or due to logistical failings within the company infrastructure. An entrepreneur can prevent this by making sure that the greater network of locations and the home office can easily support each location should they need it. This requires constant training and re-training in case of any shift in the operating procedures. There must also be a reliable way to check the quality of the performance of a given location so that the head office can deploy countermeasures in case of falling standards. This can help put the location back on the right track before the business’ image and marketability takes a hit.
Without these three features, it could prove ruinous for an entrepreneur to try to expand their business. A successful enterprise has to be cultivated carefully because it is the delicate seedling of a dream. No matter how much a business seems to be flourishing, the owner mustn’t be tempted to grow beyond their reach if they wish to see their business still operating after 15 years.
