Scared of Franchising Abroad? Meet International Franchising
Taking a small business global is a complex and dynamic
process that should not be taken lightly. There are many things to take into
consideration before starting expansion, for example:
- Gaining a deep understanding of the targeted markets
- The competition
- Local market trends
- Investment requirements
- Legal implications
- Countries’ tax laws
- And many other requirement to successfully launch and grow your business globally.
Thus for small and emerging businesses, going global is a
significant undertaking that could disrupt your existing business activities.
Before taking the steps CEOs must understand the impacts and
accept if the reward will be better than the risks taken.
For business owners wanting to expand their brand
internationally and not willing to take that much risk of uncertainty, there is
solution called international franchising. International franchising
basically means you license your business to local franchisees of that country
that are willing to undertake your business in his or her country. It is a
strategic way to reduce risk of the unknowns and also expand your brand
internationally.
“Extending a brand globally through franchising involves a
low risk, requires minimal investment and offers a huge upside potential for
scaling capabilities” – Forbes
Also international franchising can also offer what is called
foreign master franchise owners. These individuals are natives of the country
and understand the political and bureaucratic problems in his/her country far
better than any outsider. It’s more obvious to let a native run a business
dedicated to local clients.
Still Sure on starting a franchise abroad?
Here are some tips before taking the big step.
- Create a Manual. Think through the process of precisely how your business works. Franchisees will need exact details and guidelines to get their businesses up and running.
- Get an attorney. You’ll need an expert on the financial and legal process, as well as protecting your brand identity.
- Be picky. Just like any friendship, you should be selective when it comes to choosing franchisors. Choose people that believe in your idea.
- Find mentors. Someone that will guide you through the whole process of establishing your company.
(We have a really experienced team; check out our process
timeline on bringing your business to the USA. I want to know
more)
- Build a connection. This is the time consuming part of spending some face-to-face time with your franchisees, or lots of time online and via phone. Encourage them and celebrate victories and milestones.
Want to know more
about this topic?
And
Comments
Post a Comment