Franchising your bussiness
The growth of franchising has been nothing short of phenomenal. The prospects for the future continue on this trajectory. New concepts, ideas, products and services s are being developed every day with franchising in mind. Some will succeed; most will not.
It takes more than an idea to make a franchise company a reality; and it takes more than commitment and the resources one must provide. It requires many years of real-world franchising experience, and mastery of all the essential elements that go into building a franchise company. It takes people who have already succeeded, who have started and built successful franchise companies, and who know why some succeed and others do not. At Avertica® Consulting Group we can steer you around the mistakes and pitfalls that prevent others from reaching success.
The objectives of Avertica® Consulting Group are to help those with an interest in franchising determine whether they have something that can be franchised and, if so, show them how to do it. With existing franchise organizations we confidentially assist with a variety of solutions to franchise problems that can often best be identified and guided by outside professionals.
Avertica® Consulting Group is made up of people who strongly believe in the franchise concept. Future opportunities are endless if the foundation is built carefully, and financial rewards can be substantial if franchisor and franchisee work together towards their common goals. We are here to help you create these connections.
Avertica® Consulting Group will lead you through the following services:
- Business idea analysis and profitability breakdown
- Business plan creation and writing
- Financial modeling
- Marketing plan creation and writing
- Branding the Franchise System
- Incorporation. Legal & other partner coordination
- Website design and creation
- Negotiation support
- Developing Methods and Systems
- Managing Software – Application Development
- Recruiting Franchisees
- Support Service Systems
- The Financial Arrangements
- Board of Directors / Advisory Board Support.
- International Growth and Expansion
One of the first steps to increase the success rate of a franchise system is the business concept analysis. First we need to understand your business concept and operation plans. This is the due diligence and analysis phase, which requires that both parties be open and forthcoming with information. Of course at all times we guarantee the strictest confidentiality terms. At Avertica® Consulting Group we will conduct a methodic analysis to study in detail the reasons for existence of a business concept, its strength, profitability, market value, customer convenience, degree of competitiveness, and other factors. We will help you and your company to ensure that you are really confronting a successful franchise and not a flawed business idea. It is essential to prove that your concept is franchisable. This is essentially a risk analysis which will open or close the door or give cause to consider continuing with the franchise creation process.
A business plan serves several fundamental functions. For companies already in business trying to franchise, it focuses them on profitability. Additionally, a polished business plan is critical for raising capital.
The purpose of a good financial model is twofold. First, it clarifies our client’s ideas, thoughts and expectations regarding key financial metrics, including valuation. Second, it presents cohesive and supportable financial data to investors and partners that are both cohesive and supportable. A franchise system without the appropriate financial model for both the franchised units as well as the franchising company might not survive.
Different than a business plan, a marketing plan is a formal plan absolutely necessary for marketing activities. It contains market research: opportunities, sizing, growth and trends. A marketing plan is typically most useful at a stage after the business plan has been drafted; as a startup business moves beyond initial sales into rapid growth, or when a startup company with existing sales needs strategy to grow revenue.
Your franchise must be branded. When looking at a business for sale, the biggest reason for buying into a franchise rather than starting a new business is the value that comes from recognizable branding. If you have a great logo, strong reputation, and reliable services that are associated with your brand and your product, then not only will customers buy it, but franchisees will buy it, too. Taking the time to brand your business well will make it recognizable and desirable. Avertica® Consulting Group has the right partners to develop your branding strategy.
Most startups achieve success through relationship building and collaboration, rather than by simply forging ahead alone. By partnering with trusted legal and financial advisors, as well as with other firms that assist with credibility, you maximize your appeal to investors.
An attractive and consumer-friendly website is an absolute necessity in today’s business environment. Without a website that is both polished and functional, a business finds it materially harder to succeed.
Negotiation with funding sources, partners or employees can be complex. Our experience will be invaluable in helping you reach the right result. We are armed with proven tactics that can save you time, frustration, or lost advantages.
When an individual looks for a franchise opportunity, usually they want to own their own business while at the time seeking a business plan or model that has been proven to work. When franchising it is imperative that you develop the system that franchisees will follow. This is necessary for two reasons, the first is that you want your future franchise owners to succeed for themselves and you want them to value being part of your franchise. The second reason is that you need to make sure that your franchise owners are not undermining your business’s reputation. By providing a system that represents you and your business well, you allow everyone involved to provide a unified business model that customers will appreciate.
At Avertica® Consulting Group we develop the operating manuals, training programs, customized advertising and marketing strategies and materials necessary to sell the program, plus all the required disclosure documents and the franchise agreements needed to get the franchise program up and running. This phase requires precision on our part, and your input and expertise as to the basic business.
Although you or your company may have been able to initially operate without enterprise resource management software, now, as a franchise system, you must have one. At this stage of your project development a software application that helps you and your franchisees run the business is not optional. Your prospective franchisees will give for granted that your management of the software application will help them handle the daily operations of their business. In addition, your franchising company, in order to have a tight control over your customers’ databases, sales, costs, expenses, and other processes, will need a managing application that will help run the franchise network from your Franchise Corporate Offices.
At Avertica® Consulting Group we are not programmers, however we know what processes and steps are necessary to develop ERP systems, CRM systems, Intranet systems, and the majority of the flow charts needed to help you and our IT and Software Development partners build a customize software application for your franchise network.
So you’ve decided to franchise. That’s not going to mean much unless someone wants to purchase a franchise from you. Franchising is a different realm of sales and marketing. You have two things to sell, the product or service you provide to your customers and the business as a profitable venture for your franchisees. Many websites provide matching services and lead generation for franchisors. We will help you determine what fees you are willing to pay, what costs you can dedicate to advertising and recruiting and to the ways you will promote your business.
We begin the marketing process, which means attracting potential franchisees and selling them franchises. This involves aggressive advertising, qualifying prospective franchisees, and closing sales.
Franchise investors are looking for businesses for sale because they want a proven model, otherwise they would be running their own business, not looking for a franchise for sale. It is critical that while you work to maintain customer service and support with your consumers, you develop and maintain customer service and support with future franchise owners. The top requirement for most franchisees is that the franchisor provides thorough training on how to run the franchise and that the franchiser gives ongoing support throughout the course of the business to ensure franchisees that they will not be left alone. As franchisees come on board and the program gathers momentum, we work with the franchisees to support their businesses. This involves encouragement and a two-way exchange of ideas and knowledge.
You want your franchise to provide good value; something that people will want to invest in and feel like they are going to profit from being a part of. You also want to make it clear that your business is secure, and there is an element of personal investment and risk involved in not putting everything you have into running a franchise. It’s important to understand the agreement you will have between franchise owners, what costs you will charge, what percentage of profits or fees will be paid to you to maintain service and support.
As franchisees join and the program gathers momentum, we work with the franchisees to support their businesses. This involves encouragement and a two-way exchange of ideas and knowledge. A substantial stream of income develops as the network grows, and both you and Franchising Ventures Group share in that revenue.
We are available to serve on clients’ advisory boards or boards of directors. This is attractive to investors because it provides constant, ongoing insight and an independent, experienced voice.
If your franchise system has reached the critical mass and is ready for international expansion, Avertica® Consulting Group will also be ready for that challenge. Our organization, created by international partners and consultants will lead you through the initial process of becoming multinational. Depending on the size of your franchising company, its international budget and the location of your international expansion, we will help you with the entire process or setting up the basic structure for this new project. Please contact us for more details if your company goals are ready to move into international growth.