In an article published by CEOWORLD, iFranchise Group CEO and franchise consultant Mark Siebert provides guidance to business owners, plus C-level and other company executives, as they evaluate business expansion options.
Siebert counsels business executives, noting that waiting for all economic indicators to line up perfectly before expanding can hamper a business’ future growth and revenue potential. He cautions, however, that any business growth strategy should be done with care, through ample due diligence, establishing strategic partnerships, and ultimately employing the right tactics.
The article highlights, once again, that franchising has historically been a solid business growth strategy, no matter the current market economics, and provides a quick tutorial on what constitutes a franchise from a structural and legal perspective. Siebert also discusses some of the key benefits of franchising a business.
He goes on to note that while it’s commonly considered the “greatest growth strategy ever,” franchising may not always be the right strategy for every business. He describes alternatives to franchising that can be explored, including:
- Opening more corporate-owned locations or business units
- Licensing agreements
- Other options such as joint ventures, agency agreements, and dealership or distributorship arrangements
In the end, according to Siebert, a business owner’s/executive’s professional, personal, and financial goals should be driving expansion decisions. This is achieved by evaluating the best business structure to reach those goals, versus arbitrarily selecting an expansion method. He states: “Start with end in mind and work backwards to determine the best path forward for your business.”
Another important note: Leveraging the skills of experienced business advisors can help determine the benefits and disadvantages of different expansion strategies, so that the right decision can be made based on each business’ unique characteristics and set of circumstances.
