Growing Your Business in the Financial Services Industry
Every entrepreneur in the financial services industry wants to grow and expand his or her business to reach and gain more potential clients. Answering the question of “how” to grow a business can be very difficult. While not every business has the same business model, there are some strategies that entrepreneurs within the financial services industry can do to expand and achieve their growth goals. Should those individuals find they are at the point where they have accomplished what they have set out for, it may be time to start establishing new goals for building their business even further. For example, franchising can be a great way to expand, just as I did with Tayne Law Group, P.C. in early 2017. If your business is successful and running like a well-oiled machine, why not strive for new goals and use franchising as a tool for growing your business?
When considering franchising as a way to broaden one’s business, there are factors that must be considered. Look at the market penetration in your area and ask yourself if you have allowed time to let your business grow organically. Personally, I didn’t rush into franchising without first trying natural expansion into surrounding areas that I knew would make sense for me geographically. After doing a lot of research, I was able to pinpoint the markets where debt resolution services were most needed and what geographic areas made sense for me to move into. I started off with opening my headquarters in Long Island then I strategically and gradually branched out into three other locations within New York State.
Further questions to ask when considering a franchise model as a way to expand your business in the financial sector is if your company is “franchiseable” and do you have enough appeal to widely expand to other locations and draw a larger following with buyer interest. Franchising was the right move for me and could be the right move for other entrepreneurs; however, it’s important to not make any hasty decisions and ensure the timing is right so you avoid the risk of biting off more than you can chew. It took me over a decade before making this leap. To expand you need to have the right passion and desire in wanting to share your services and business with others. Once I had an established brand, I knew the timing was right for me because I wanted to reach new markets for making my services more accessible to more people while providing financial and law entrepreneurs an opportunity to achieve their own success without having to start from scratch.
Here is why franchising may be a lucrative way to grow your business:
The Gains Of Expansion Through Franchising
Generally, there are three main returns to gain from growing your business through a franchise model: time, money and people. Franchising can provide rapid growth while saving time and resources. Choosing to grow through a franchise model enables established entrepreneurs to use new franchisees’ capital for expanding instead of having to use their own funds and taking risks on a significant amount of debt. At the same time, it allows unestablished entrepreneurs an opportunity to pave their own way toward success without needing to start from the ground up by immediately providing them access to a reputable brand with an established following. Franchising allows you an opportunity to tap into other locations without consuming a great deal of time and breaking the bank. However, it is always important to know your budget! Even though franchising can be a low-cost way to expand your business, it’s still an investment that requires your money, so always research and plan wisely.
Franchising can take your brand and business to the next level, affording you longevity. Of course, you will need to find credible franchisees who are like-minded to truly have successful expansions. When someone in the financial services sector decides to go forward with franchising, it helps other entrepreneurs find a niche to become a proprietor under your guidance. As a franchisor, you are allowing others in the industry access to your established brand which, in return, should play into your favor since you are accessing more outside talent and ideas. Franchisees, unlike employees, pay you to become a part of your business and continue to pay you a percentage of their profit throughout their franchise agreement.
Right Timing
As mentioned earlier, you don’t want to dive head first into franchising without doing a little homework. Franchising won’t be the answer to more growth for every business. You may want to consider franchising if your business has credibility and an element of uniqueness. Evaluate if your business has a long standing track record, if it is profitable, if it has something fundamentally different from its competitors and if it offers a marketable business opportunity. For your business to have franchise model appeal, it needs to be teachable and easily implemented.
Franchising is a big decision and is not something that should be decided overnight. Research costs and fees involved as well as the different locations you would like to franchise in. Talking to other franchisees about their experience may provide you a better understanding and perspective about franchising. You may also want to consult an expert in franchise development.
Challenges
As a single mother of three children working in the typically male-dominated field of finance and law, I had to ensure that franchising was going to be the best way for me to grow my own business. I put in many years to build a trusted and reliable brand and it’s very important for me to properly screen franchisees, which is something that should apply to anyone who decides to franchise. Always check a franchisee prospect’s rating with the Better Business Bureau as well as their general business reviews and business websites.
Meet with a franchisee candidate in person and get references so you can learn as much about their business track record and professionalism as possible. You want to make sure any franchisee you bring on board will uphold your industry standards, integrity, and reputation that you’ve worked so hard to build.
As a franchisor, it’s vital to provide adequate training and support to franchisees on a regular basis to ensure they follow your guidelines and stay true to your brand. On the other hand, if you don’t have a reputable brand, trademark or following, establishing franchising and attracting franchisees may be very difficult. Potential franchisors should have strong brands along with strong relationships to build off whenever going the way of a franchise model for business growth.
If your business is well established with a strong brand and following, it may be the right time for you to franchise. Expansion through a franchise model, with the correct steps and homework, could be the right move for taking your business and brand to the next level on a regional or national basis.
