Franchising a Business? Learn the Fundamentals First
by Ed Teixeira
Small business owners contemplating franchising their business should
possess basic business skills. Before embarking on the road to franchising the
small business owner should inventory their business skills and if necessary
sharpen them before attempting to franchise their business.
Every day countless business owners both large and small consider franchising
their business. This process will include attorneys and franchise consultants,
including myself, who will be engaged by these business owners who may decide to
proceed with franchising. Numerous articles and a number of websites provide
advice on whether a business can be successfully franchised. Key areas to
analyze include the type of product or service the business sells, profitability
of the existing business and the amount of working capital available for
building and developing a franchise program, etc. However, one area that doesnít
receive enough attention, particularly in the case of the small business owner,
is the competency of that owner to build and manage a successful franchise
Focusing solely on the features of the business and its pros and cons as a
franchise operation rather than on the skills of the person leading that
business could be a mistake. A number of small business owners that enter the
world of franchising go from operating one business to two. Itís important that
they have the management skills and necessary knowledge to make that leap.
Launching a new franchise program can be a daunting task.
There is a fundamental knowledge base that these individuals should have. If
they donít have these skills they should acquire them or hire someone they can
rely upon who does.
- Basic understanding of business accounting. This includes
the need for proper record keeping and financial statements.
- Organizational skills that include prioritizing, goal
setting and the importance of focusing on specific objectives.
- The ability to write a basic business plan that includes the
- Basic computer skills.
- Sources for obtaining working capital or financing
A Small Business Development Center (SBDCs) can be a good source of training
and advice for small business owners considering franchising. Small Business
Development Centers (SBDCs) are partnerships primarily between the government
and colleges/universities administered by the Small Business Administration.
SBDC services include, but are not limited to, assisting small businesses with
financial, marketing, production, organization, engineering and technical
problems and feasibility studies
There is SBCDs Located in every state including Lead Small Business
Development Centers (SBDCs) of which there are sixty three locations.
Each Center coordinates program services to small businesses through their
network of sub-centers and satellite locations in each state. Center staff
includes a director, staff members, volunteers and part-time personnel. The
services are free and confidential with low cost training available. Assistance
from an SBDC is available to anyone interested in beginning a small business for
the first time or improving or expanding an existing small business, who cannot
afford the services of a private consultant.
Before taking that next step into franchising the small business owner should
have the required business skills or hire someone who does.
Visit the Association of Small Business Development Centers website to find your
© 2012 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow, LLC. He
can be reached at firstname.lastname@example.org