Many business structures have emerged over the years. But, one of the most effective and established ones, especially where localized products and services are involved, is the franchise business model.
Entrepreneurs who want to expand their companies often decide to franchise their businesses. This decision helps them leverage their brand name, as well as eases the burden of resources – such as money, time, and people – that business owners would otherwise have to provide for expansion.
If you are among these entrepreneurs, you may already have an idea on how you can franchise your business – what should be included in the franchise package and the legal requirements. But there is one thing you shouldn’t overlook: your sales pitch.
Assure the franchise is not a fad
When you first established your company, you probably laid out a detailed blueprint of how you could sustain your business into the future. If your business has been around for years, that tenure can be your selling point.
Businesspeople want their investments to profit, over time. While many new entrepreneurs can fall into the trap of investing in what’s currently hot, the more careful ones can identify which brands are short-term investments. Selling to these individuals means you have to provide substantial proof that the franchise will still be profitable even after ten or more years and despite trends and new competition.
Show them figures
Speaking of proof, you should provide documents that back up your claims. Potential investors want evidence that your concept is profitable. You don’t have to provide all the documents in detail, as they may contain sensitive and confidential financial information. But you should give your prospect an overview of figures, such as an estimate on how much they can earn in a month minus royalty fees, overhead costs, and other logistics expenses.
If you have already sold other franchises which have been successful and profitable, don’t forget to include them in your sales pitch. This is the kind of solid proof potential investors look for.
Guarantee ongoing support
One of the advantages of buying a franchise is that the package comes with training and support. When you’re selling your franchise, explain what is included in training, such as employee workshops and how to operate a specific machine. Additionally, show them how your support can be advantageous to them – it saves them time on sourcing reliable suppliers, for instance, because the business already has partners
You should guarantee your client that you will provide consistent assistance from day one until needed. Support shouldn’t only be given during the first few months or first few years. It should be a long-term commitment between you, the potential investor, and when necessary, other franchisees.
If you don’t have enough resources to expand your company, franchising your business may be the way to go. In a perfect world, you can find investors who will trust your concept in an instant. In reality, you need to find leads and draft a great sales pitch to attract prospective franchisees. However, a great sales pitch will not work when you don’t have documents and proof that you’re selling a business that sells.