If you have a business that has been successful then you have probably put a lot of hard work and energy into developing a business plan, carving out a market, and developing a base of customers that you have cultivated with your service. Also, you have probable been thinking about what the next step is to continue the growth of your business. Eventually a market gets saturated and a business is left to discover innovative and new ways of expanding their profitability. Some business offer new services and products, while others try to open more stores in new locations. If you have been thinking about these things and investigation expansion options, then the idea of franchising your home based business has probably come to mind. The idea seems to good to be true, sit back and watch you brand grow while collecting royalties while others front the cost and do the work of growing and maintaining your business right? Well there are a lot of other options to consider when franchising your business beyond how much you can get away with charging your franchisees.

I9 sports is one such business that started as a local opportunity for children to experience a variety of team sports with a participation and involvement goal that rated more important than the competitiveness of most local leagues. I9 found an immediate niche and success providing an alternative sports program to highly competitive, exclusive, and win-over-fun style team sports experiences. But the franchising of i9 sports leagues was not as simple as deciding on a figure to charge future franchise owners and cashing royalty checks.

The first thing that I9 has to ask, and you should do, is whether or not there is a genuine cross-market niche for your specific product. I9 had to do some pretty serious research to see if the sports league experience nationally compared to the local experience that fueled the desire and market for a fun and involvement based alternative league system. Many businesses while successful are simply one-market wonders. I9 had to see if they could break out from the local scene to really be a successful and valuable franchise offering. Fortunately, they were.

The second question you need to ask is whether or not your business is easily teachable. Many people have a unique set of skills and talents that make their specific business and passion seem effortless. But truth be told, there are many companies that are so complex and convoluted in how they actually went from start-up to success, that to try and replicate that success at any level of expansion would be next to impossible. The questing really is, can you break down exactly how you were successful and teach that quickly, efficiently, and effectively to a wide variety of potential franchise owners?

Finally, you will need to ask yourself what kind of commitment, support, and training you going to offer to those who bear your franchise tag. How much is it going to cost you to provide it? While collecting $50,000 per franchise start-up is a seemingly tidy amount for sharing your wisdom and name with future franchise owners, and would defiantly categorize your franchise as "cheap" by most industry standards, what is it actually going to cost you to set up a franchise owner? Are you going to provide training? How much will materials cost? Instructors? Classroom space? Most franchises offer ongoing training and support, how much of your royalties are going to cover that continued service to your franchisees?

It's important to approach franchising your business in much the same way as you approached starting your business in the first place. How much will it cost? Do you have an effective business plan? What will it look like to proceed with your business as a franchiser as opposed to a self-employing business owner? These questions will help you enter the new and exciting phase of your business with your eyes wide open and an effective plan in place to ensure that your success will continue in a greatly increased and profitable fashion.

April 02, 2008