Is it Time to Franchise with a 2nd Brand?
You’ve done it. Congratulations. You ventured out into business ownership, you started a company, and you’ve been 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, why not consider starting out 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’re not meaning 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, just with a little more know-how up front.
There should also be plenty of trained employees - enough folks there 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/or 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 compliment 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), it might be more beneficial to start a completely opposite type of business. Weigh pros and cons – with logistics and preferences – to determine which setup will work out best.
You should also look at business contacts, types of available network opportunities, area market vs. need, and more. All of which, 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 take into account. 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 with 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 in place.
If you have the means and the will, it just might be time to start franchising with an additional franchising 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.