how to attract franchise investors

7 Franchise Marketing Strategies to Attract Franchisees

• 1. Elevate your brand as an authority ...
• 2. Optimize your appeal to franchisees ...
• 3. Build strong communication with your current and potential franchisees ...
• 4. Use existing franchisees as advocates ...
• 5. Curate a strong web presence ...
• 6. Implement franchise marketing strategies for your franchisees ...
• 7. Nobody Buys a Franchise To Get Into Digital Marketing So Hire an agency ...

Full Answer

Why are franchises so expensive?

What does Business Partners look at?

Is there an angel investor network in South Africa?

How do you find investors for a franchise?

Top 10 Funding Sources For Your Franchise Venture1: Franchisor Financing Options. ... 2: Conventional Banks And Credit Unions. ... 3: Small Business Administration. ... 4: Business Partners. ... 5: Home Equities. ... 6: Borrowing From Friends And Neighbors. ... 7: Retirement Plans. ... 8: Stock Assets.More items...•

How do you attract more franchisees?

However, if you follow these simple tips you will be on the right track!Position Your Brand as an Expert in its Domain. ... Make Yourself Appealing to Franchisees. ... Strong Communication with Your Current and Potential Franchisees. ... Use Existing Franchisees as Brand Evangelists. ... Create a Strong Web Presence.More items...•

How do I promote my franchise?

To attract the right target market for your franchise, use these marketing tactics to advertise your franchise....Advertising. You may think of advertising as print media only. ... Direct mail. ... Sales. ... Promotions. ... Public relations. ... Online marketing.

How do you recruit a franchise?

How to recruit and retain franchiseesA loyal and engaged franchisee network makes for a more enticing prospect for other budding business owners. ... Look internally first. ... Referral scheme. ... Showcase what you do. ... Continued professional development. ... Rewards and networking. ... CSR program. ... ABOUT THE AUTHOR.

How do you write a franchise proposal?

How to Write a Franchise ProposalReview Franchise Requirements. Franchise owners publish information that sets out the scope, benefits and requirements of their franchise. ... Develop a Structure. ... Provide an Overview. ... Describe Your Experience. ... Introduce Your Team. ... Describe Market Potential. ... Make Financial Forecasts.

How do I choose the right franchisee?

It's absolutely key to find the right franchisees....How to choose the right franchiseesDo they have a passion for the business? ... Do they have the necessary financial means and business acumen? ... Will they maintain your standards? ... Is your franchise a good fit for them?

What is franchise strategy?

Put simply, a franchise strategy is a road map that gives your business direction by: outlining objectives. helping you to understand the landscape in which you operate. mapping tactics to achieve your goals. planning for any potential obstacles in the road.

What is the best type of franchise marketing?

Marketing automation is one of the most powerful marketing tactics that you should be using in your franchise marketing strategy. With careful planning and the right execution, it allows you to nurture each potential franchisee by providing them with timely and personalized touch points at scale.

Where can I advertise franchise opportunities?

Ways to Market Your Franchise OnlineSearch Engines. ... Social Media Channels. ... Local Websites and Travel Sites. ... Pay Per Click and Display Campaigns. ... Email Campaigns. ... PR and Influencer Marketing. ... Your Own Websites. ... Remarketing Campaigns.

Why is digital marketing important to a franchise?

A lot of the discovery process has moved online, hence having an online presence is a must in today's time. So if traditional franchise marketing or advertising methods aren't sufficient, then adopting an omnichannel marketing approach works the best for your business.

What is the obligation of franchisor to franchisee?

As a "franchisor" your primary responsibility will be to support the operations of your franchisees and to continuously develop and monitor the business systems, products and/or services that have made your business a success. The number responsibility you will have is to financially support the franchise.

What is the obligation of franchisor to franchisee explain in your own words?

The franchisor grants the franchisee the right to operate the business under the franchise system's trademarks and service marks and enforces the brand standards of the system. Great franchisors provide training to new franchisees and their management, and also provide support in the training of the franchisee's staff.

What is the Does Franchise Disclosure Document or FDD means?

The Franchise Disclosure Document (FDD) is a critical document that provides the franchisor's details, including legal history, company structure, financial status and agreements, existing franchisees, and many more.

Why are franchises so expensive?

Here’s why: 1. Franchises can be expensive. Generally, the more expensive the franchise, the more earning potential there is for you (simply put, ‘hot’ franchises cost more because they earn more). To get started, you have to pay to obtain the right to use the franchisor’s name and gain its assistance in helping you succeed.

What does Business Partners look at?

We look at the application in exactly the same way as general applications – ensuring (as far as possible) the long-term viability and sustainability of the business, as well as the capabilities, skills and expertise of the entrepreneur. We also do a due diligence on the franshisor.”

Is there an angel investor network in South Africa?

“There is no formal network of angel investors in South Africa. Some financial institutions may consider taking some form of equity in a promising franchise. The other option is to approach friends or relatives for help”

Why is a franchiser attractive?

A franchiser that provides marketing solutions for their partners is much more attractive to prospective franchisees because they know that they will be set up for success if they decide to sign on; when potential franchisees see that your franchise operators are successful, they will be more inclined to join your company.

How to build brand authority?

Making your brand authority in the marketplace goes beyond simple brand awareness. You should strive to leverage your company’s professional knowledge as a resource for others, taking opportunities to join roundtables, webinars, and other presentation outlets as often as possible.

1. Work on extending your network

Many entrepreneurs dread the hard sell of approaching an investor. Understandably, they find the process intimidating. One way to avoid this kind of interaction is to cultivate a network rich in potential investors. If you have a pre-existing relationship with potential investors, the dynamic may be different when you approach them.

2. Show evidence

When it comes to large sums of money, investors don’t usually gamble on a hunch. Instead, they want hard data that convinces them of your project’s potential. Unfortunately, this can be difficult to obtain at an early stage: after all, you haven’t received an investment for the work yet!

4. Personalize your pitch

If you can, research potential investors prior to approaching them. That way, you’ll be able to save time and work smart by focusing on those who are most likely to be interested in your investment opportunity. Maybe they already have a portfolio of investments.

6. Choose co-founders wisely

Do you have a co-founder? If not, you might want to find one fast. They are a great way to complement your skills and background with anything you might be missing. For instance, maybe you’re the brains behind an incredible new technology, but you don’t have any business acumen.

7. Refine your business first

Before you start selling your company to others, make sure it’s in the best shape possible. One way to do so is to participate in a startup accelerator.

8. Build a strong brand online

Investors are guaranteed to research your business before they commit to investing in it, so make sure what they find online is positive. If you can build up a community of supporters before you start pitching, that’s proof of interest in your project. An amateurish web presence won’t inspire faith in your abilities.

9. Think outside the box when it comes to investors

When you think about business investors, you shouldn’t necessarily visualize rich people in expensive suits. These days, alternative forms of funding are available. Maybe your project lends itself to group funding, for example.

How to attract investors to your business?

At various stages of your business, you may pitch venture capitalists, family and friends or other equity investors. There are two components to attracting investors: 1 Get their attention. 2 Motivate them to learn more about you and your business.

Why did Coles suggest participating in different business pitching competitions and speaking engagements?

Business pitching competitions: Coles suggested participating in different business pitching competitions and speaking engagements to otain useful feedback and stir up interest from potential investors.

What does McGregor say about business?

Additionally, McGregor said that it’s important to not be all business all the time. “Be personable, be approachable … be humble,” he said. For example, after you pitch at an event, stay after (or go early), but don’t continue to pitch. Instead, ask investors personal questions about their families or their own businesses.

Did Coles ask his family to invest?

Friends and family: Coles had been so focused starting his business while working a full-time job and utilizing funds from his rental investments that he didn’t ask his family to invest. Then he discovered that they were wondering why he hadn’t come to them first.

How to attract investors?

To attract the attention of an investor, make sure your product solves a real problem. Too many entrepreneurs simply try to reinvent the wheel, so avoid being one of them.

What do investors want from an idea?

Investors want proof that your idea is going to work, and nothing proves this better than having real, paying customers.

How to keep potential investors in the loop?

Douglas’s advice for how to keep potential investors in the loop? “Tell them where you are currently, where you will be before closing the next round and what the new capital will enable you to do. Get them to agree that the metrics make sense and then hit them. Everyone likes someone with a track record of doing what they say they will do!”

Why is networking important for entrepreneurs?

Networking is usually the number one tip for new entrepreneurs for good reason— networking allows you to pitch your startup in a less formal, more organic fashion.

Why do you ask for advice from an investor?

By strategically reaching out to an investor for advice first, you may be able to build a relationship with them that will result in a greater willingness to invest in your business later on. It gives them a chance to point out potential flaws in your business and shows that you value their input. “In my experience, asking for genuine advice can often lead to an engaged, passionate investor,” says Hussein.

Can you take on just anyone as a startup?

With that said, don’t take on just anyone. Choosing the right leadership team for your startup is a delicate process, as having the wrong co-founders can ultimately be more hurtful to your business than having no co-founders at all.

Is it hard to start a company alone?

“Starting a company alone is very difficult, ” says Ben. “Having partners gives you people to rely on, which can be a huge boost for your company.”. 5.

How to attract investors to your business?

One of the most important things you can do to attract potential investors to your business is to demonstrate a track record of growth. Investors like to invest in companies that have a proven ability to achieve bottom line growth. You don't necessarily have to set the world on fire, but you do need to be able to show investors that you are able to consistently set and meet your goals.

Why is an investor agreement important?

An investor agreement also boosts investor confidence because it clearly spells out what will be expected of them should they decide to invest in your business as well as legal security for their investment. At the same time, it safeguards your rights and responsibilities by providing you with a documented agreement regarding the scope of the investment relationship.

What is a good business plan?

A make-it-up-as-you-go approach simply will not cut it. A good business plan is a well-researched roadmap that spells out the goals and strategies that will be required to achieve real growth.

Why are franchises so expensive?

Here’s why: 1. Franchises can be expensive. Generally, the more expensive the franchise, the more earning potential there is for you (simply put, ‘hot’ franchises cost more because they earn more). To get started, you have to pay to obtain the right to use the franchisor’s name and gain its assistance in helping you succeed.

What does Business Partners look at?

We look at the application in exactly the same way as general applications – ensuring (as far as possible) the long-term viability and sustainability of the business, as well as the capabilities, skills and expertise of the entrepreneur. We also do a due diligence on the franshisor.”

Is there an angel investor network in South Africa?

“There is no formal network of angel investors in South Africa. Some financial institutions may consider taking some form of equity in a promising franchise. The other option is to approach friends or relatives for help”