Wednesday, May 22, 2024

Finance

Is It Time to Franchise with A 2nd Brand?

Franchise with A 2nd Brand

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You’ve done it. Congratulations. You ventured out into franchise for sale Sydney  ownership, started a company, and were very successful at it. So what’s next? Hone your brand and continue to expand. Maybe start up a second (or third or fourth) location? Then again, you’ve been so great at this one venture, so why not consider starting on a new one altogether? After all, one of the most important aspects of business is always looking for the next opportunity, and failing to do so could hinder your growth even if you do not mean to.

So, is it time to branch out and franchise with a second company? Perhaps.

Determine what’s best by looking at a few key factors. First off, do you have the time? Before dedicating your hours to an alternate brand or location, it’s important to have someone in charge who can successfully handle the day-to-day operations without you being there to ensure it’s getting done. Just think how much of your time was needed for the first start-up – chances are it will be much of the same, with a little more know-how up front.

There should also be plenty of trained employees – enough folks to run the show that you feel comfortable ducking out. Knowing your business won’t suffer.

Next, look at cash flow. Do you have the funds to budget something new? Or the credit and ability to obtain the necessary dollars to get started? Struggling a little is expected (and normal) at the beginning. But losing sleep over not knowing if you’ll be able to pay your bills is not. Find this in-between figure before stepping forward with your second brand.

Now it’s time to look at types of franchise brands. Are you looking for something that will complement your current company? Perhaps even co-brand under a single roof? Or do you want to take on something completely different? The former might be more budget-friendly. Then again, depending on how you have accounts set up (and your interest level), starting an opposite type of business might be more beneficial. Weigh the pros and cons of logistics and preferences to determine which setup will work best.

It would help if you also looked at business contacts, types of available network opportunities, area market vs. need, and more. All of these, combined, can create a well-rounded approach to what your next venture might hold.

The Perks to Re-Franchising

Before you stop and think that a second venture will be too much work, there are a few positives to consider. You’ve already gone through the hard parts – learned what works and what doesn’t. And this time around, building your business will be that much easier.

You’ll be known by lenders and have proven your ability to make it in the business community. Taxes and licenses will be a small add-on, as will hiring, payroll, and virtually every other aspect of logistics. It might be a second brand, but with the heavy lifting already.

If you have the means and the will, it might be time to start franchising with an additional brand, whether or not you have plans to combine their reach. Start researching, or check out our resources page to get the basics down before moving forward.

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