Successful Growth Strategies For Franchises

AllBusiness:

You’ve made up your mind to franchise your business, and now you need to decide how to accomplish that professional leap. One important component to consider is how quickly you want to develop and advance the business. To expand aggressively is a gamble and a significant expense; the risk and cost involved in developing your franchise more slowly are limited.

Slow vs. Fast
Conventional wisdom encourages new franchisors to start conservatively, reasoning that an entrepreneur necessarily risks more with no-holds-barred expansion than he or she would by taking a slower approach. Expansion is less problematic and risky once the franchise is established and has proved successful. On the other hand, a company may stake overly aggressive growth over the loss in market leadership, which may result from overly cautious growth. This is the contention of those who opt for an assertive growth model. For your franchise, it is important to analyze all the risks involved — from both sides — before you decide.

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