Alternative Ways to Expand Your Business Besides Franchising
- 1. Expanding Your Operations Yourself
- 2. Licensing/Biz Opps
- 3. Licensing Your Trademark
- 4. Distributing Your Product As A Wholesaler
- 5. Agency
- 6. Partnerships/Joint Ventures
- Company-Owned Operations. The most obvious expansion method for many companies is the development of additional company-owned outlets. ...
- Business Opportunities or Licensing. ...
- Trademark Licenses. ...
- Dealerships and Distributorships. ...
- Agency Relationships. ...
- Joint Venture.
What is an alternative to franchising?
Licensing Ownerships In a licensing arrangement, a licensee pays for the rights to use your trademark. Unlike the control you would have over a franchise, your licensees run their businesses independently.
What is better than a franchise?
Startup: The Pros With startup costs that could be as low as $10,000, having your own business—whether full-time or part-time, in your basement, your garage, or even out of the trunk of your car—is significantly less expensive than the costs associated with many franchises.
How can I expand my business?
How to Expand a Business: 10 TipsAdd New Offerings. One of the most obvious ways to expand your business is to add new products or services to your mix. ... Optimize Your Existing Market. ... Claim a Niche Market. ... Move Into New Markets. ... Seek Referrals. ... Launch an Ecommerce Website. ... Partner With Other Businesses. ... Acquire a New Business.More items...•
How can I expand my business to another city?
How to expand business in other cities?Preparing a plan.Evaluating current finances.Market research.Adding new products and services.Implementing innovative marketing strategies.Establishing goals for a new location.Identifying territories that have great potential.Allocating funds.More items...•
Should I franchise or not?
You should only franchise if it is a part of your long-term growth strategy and goals. Only franchise if your goal is to expand your brand and to build an organization to support and assist your future franchisees.
Is it better to be a franchise or independent?
An independent business is a good choice. But if the time and effort seem daunting or time-consuming, a franchise may be the better choice. Most of the development is already done. Franchises are turn-key businesses.
What are the 4 types of business growth?
The four growth strategiesMarket penetration. The aim of this strategy is to increase sales of existing products or services on existing markets, and thus to increase your market share. ... Market development. ... Product development. ... Diversification.
What are 3 ways in which a business can grow?
So, What Are The 3 Ways To Grow Your Business?Acquire New Customers.Increase Your Average Transaction Value.Increase Your Customer's Frequency of Purchase.
What are the 8 ways to grow your business?
8 ways to grow your businessGet to know your customers. ... Offer excellent customer service. ... Nurture existing customers and look for new opportunities. ... Use social media. ... Attend networking events. ... Host events. ... Give back to your community. ... Measure what works and refine your approach as you go.
How do I expand my business and grow it big?
13 Secrets for Growing Your Business QuicklyHire the right people. ... Focus on established revenue sources. ... Reduce your risks. ... Be adaptable. ... Focus on your customer experience. ... Invest in yourself. ... Always think ahead. ... Boost your customer service.More items...
How do entrepreneur expand their business?
Common routes of small business expansion include: Growth through acquisition of another existing business (almost always smaller in size) Offering franchise ownership to other entrepreneurs. Licensing of intellectual property to third parties.
How do you target new customers?
10 Ways to Get New CustomersAsk for referrals. ... Network. ... Offer discounts and incentives for new customers only. ... Re-contact old customers. ... Improve your website. ... Partner with complementary businesses. ... Promote your expertise. ... Use online reviews to your advantage.More items...•
What are the 4 types of franchising?
The four types of franchise business you can invest inJob or operator franchise. These owner operator franchises are usually home based, which keeps overheads down to a minimum. ... Management franchise. ... Retail and fast food franchises. ... Investment franchise.
What franchise is the most profitable to own?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
What is the most profitable franchise to own in 2022?
Top 14 Most Profitable FranchisesMcDonald's. Units in operation: 39,360. ... Dunkin Donuts. Units in operation: 12,800. ... Taco Bell. Units in operation 12,800. ... Subway Franchise. Offers Financing: Yes. ... Anytime Fitness Franchise. Units in operation: 4,904. ... Sonic. Royalty: 2.5% - 5.0% ... Planet Fitness. Royalty 7.0% ... Orangetheory Fitness.More items...
Is Nike a franchise?
Nike operates a win-win franchise model for entrepreneurs.
How to expand your business?
One of the most obvious ways to expand your business is to add new products or services to your mix. To do this, you need to know which products or services your customers want from you, and how much they’d be willing to pay for them. As an enterprising business owner, you should always be evaluating the market and looking for new opportunities—but if you need some help figuring out what to sell next, start with market research. Talk to your current customers about other offerings they would like to see from your business, and what they’d be willing to pay for them.
What to do next when considering how to expand your business?
If you’re not sure what to do next when considering how to expand your business, see what your top competitors are up to. Did they recently launch a new product line or service? Have they opened any new locations? What are they doing in terms of marketing strategy? Learning what your competition is up to can help you understand what your business needs to do next and inspire you to grow your business in new ways.
How Much Does It Cost to Expand a Business?
The cost of expanding a business will depend largely on the type of business you have and the scope of your expansion plans. For example, it can be especially costly to expand your product offerings or acquire an existing business. On the other hand, launching an ecommerce website or expanding your existing market can be lower-cost expansion techniques. Regardless of which approach you utilize to expand your business, you may find you need some help with financing to cover the up-front costs. Here are some business expansion loans to consider:
How to expand your business if you sell clothing?
Just remember not to pivot too far away from your core business. If you sell apparel, a natural expansion might be to start offering shoes or accessories. It would be a little far-fetched if your new product was baked goods. The key here is to diversify your offerings so that they complement each other.
Why is it important to know how to expand a business?
But, knowing how to expand a business is extremely important if you want to sustain your business’s success and your own financial well-being. If you fail to grow and adapt your business, you risk being left behind as the market changes or having a competitor ...
How to move into new markets?
One of the most effective ways to move into new markets is by seeking out customer referrals. After all, 83% of consumers trust the recommendations of family and friends over other forms of advertising, and referred customers historically convert more often, have a higher lifetime value and retention rate, and are significantly cheaper to acquire than non-referred customers. [1] The best way to drum up word-of-mouth marketing is to have a customer referral program—a systematic way of getting current customers to refer others to your business.
What does it mean to expand your business?
Sometimes, expanding your business literally means moving to a larger location. If your employees are sitting cheek-to-cheek, you’re tripping over boxes stacked in the hallways, or you have to take client meetings outside the office because there’s no room inside, then it’s time to seek a larger space.
Company-Owned Operations
- The most obvious expansion method for many companies is the development of additional company-owned outlets. This strategy offers several advantages over franchising. Perhaps most important, company-owned growth allows owners to keep 100 percent of each unit's profits rather than sharing those profits with franchisees. It also offers increased cont...
Business Opportunities Or Licensing
- The advantage to the business opportunity (biz opp) route is that in many cases, the licensor doesn't have to comply with the FTC's franchise disclosure regulations, which saves money and makes the sales process less complex. That said, a biz opp may still have to comply with franchise disclosure laws in some states and will need to comply with the patchwork quilt of biz …
Trademark Licenses
- The second option available to those looking to expand through third parties is the use of a trademark license. For those of us without famous names, trademark licenses are exceptionally difficult to market—especially if we're branding a business instead of a product. After all, if someone is going into a business, it's the system of operation -- the recipes, the advertising, the …
Dealerships and Distributorships
- This format involves the provision of products to a third party at a bona fide wholesale price for resale, a tried-and-true means of establishing a distribution channel. Of course, this method is only appropriate for manufacturers and wholesalers. But be careful: Selling equipment, displays, and other items that aren't intended for resale-- even if not sold at a profit -- will trigger the fee eleme…
Agency Relationships
- In an agency structure, an independent salesperson sells a service on your behalf -- so again, this form of relationship is only appropriate for companies for which fulfillment of the contract is provided by the corporation and not by the agent. The easy distinction here is that all money flows downward (from corporate to the agent) and not upward (from the franchisee to the franchisor)…
Joint Venture
- A joint venture partnership is characterized not by fees but by sharing both equity and profits. So, for example, your joint venture partner might put up 70 percent of the money and work at a salary that was below market for one year. You'd put up 30 percent of the capital, sign personally on a bank note, and provide your intellectual property. Based on your negotiations, you might end up i…
Company-Owned Operations
- The most obvious expansion method for many companies is the development of additional company-owned outlets. This strategy offers several advantages over franchising. Perhaps most important, company-owned growth allows owners to keep 100 percent of each unit’s profits rather than sharing those profits with franchisees. It also offers increased cont...
Business Opportunities Or Licensing
- The advantage to the business opportunity (biz opp) route is that in many cases, the licensor doesn't have to comply with the FTC’s franchise disclosure regulations, which saves money and makes the sales process less complex. That said, a biz opp may still have to comply with franchise disclosure laws in some states and will need to comply with the patchwork quilt of biz …
Trademark Licenses
- The second option available to those looking to expand through third parties is the use of a trademark license. For those of us without famous names, trademark licenses are exceptionally difficult to market—especially if we're branding a business instead of a product. After all, if someone is going into a business, it's the system of operation -- the recipes, the advertising, the …
Dealerships and Distributorships
- This format involves the provision of products to a third party at a bona fide wholesale price for resale, a tried-and-true means of establishing a distribution channel. Of course, this method is only appropriate for manufacturers and wholesalers. But be careful: Selling equipment, displays, and other items that aren't intended for resale-- even if not sold at a profit -- will trigger the fee eleme…
Agency Relationships
- In an agency structure, an independent salesperson sells a service on your behalf -- so again, this form of relationship is only appropriate for companies for which fulfillment of the contract is provided by the corporation and not by the agent. The easy distinction here is that all money flows downward (from corporate to the agent) and not upward (from the franchisee to the franchisor)…
Joint Venture
- A joint venture partnership is characterized not by fees but by sharing both equity and profits. So, for example, your joint venture partner might put up 70 percent of the money and work at a salary that was below market for one year. You'd put up 30 percent of the capital, sign personally on a bank note, and provide your intellectual property. Based on your negotiations, you might end up i…