Franchise Expansion: How to Know When it's Time to Grow
Seeing your remodeling franchise thrive is one of the most rewarding feelings for a business owner. However, it may be daunting to consider the next steps when you reach this milestone. Today, we look at the potential of franchise expansion and how your next career move might mean branching out into new territory.
Timing is Everything
There is no best time of year or season in your career to open a second (or third) franchise. The right time to consider franchise expansion lies in the specific window where a few key pieces fall into place.
A primary concern is your first franchise’s bottom line. Opening a new store of any kind can involve significant upfront costs. You’ll need more materials and may require new equipment, marketing content, and, potentially, more real estate. You’ll also need to hire more staff who can make up an efficient and trustworthy team. To put more cash into other projects, you’ll first have to ensure that your current franchise has a significant ROI.
The other thing to consider when it comes to timing is the new potential franchise. Look at the demand for your new product or service in the area where you plan to expand. Is there a significant need for your type of business in that area right now? Has demand for your current franchise skyrocketed so that a second location feels like the best option?
Opening a Kitchen Tune-Up brand can alleviate some of these doubts. With exclusive territories in high-demand zones, you’ll never have to worry about another Kitchen Tune-Up franchise directly competing with you.
Once you’ve established that the timing is right to open another franchise, the next looming question revolves around what type of franchise you should open. In some cases, it may feel obvious. If your kitchen remodeling service is overflowing with customers, opening a second kitchen remodeling franchise might make the most sense, perhaps in a neighboring area. That way, you could potentially double the number of projects your staff take on at once.
Another strategy you might consider is opening a franchise that complements your first one. For example, your Kitchen Tune-Up franchise may be overwhelmingly successful, but there may already be enough competition in the kitchen remodeling field in your local area. Thus, you wouldn’t be confident that opening a second identical one would be the right move.
Instead, you might look into opening another franchise from Home Franchise Concepts’ sister brands, such as Bath Tune-Up or Tailored Living. These are also remodeling brands, but they would not directly compete with your Kitchen Tune-Up franchise. With this franchise expansion strategy in place, you can explore new remodeling opportunities and point happy customers to your other services when those particular needs arise in their lives.
Prioritize Your People
As with any significant decision, it takes more than a few bullet points of information to decide the absolute best method of moving forward. Your people are one of your most essential resources to manage during this transitional time. Your employees and colleagues are the backbone of your franchises, and you’re likely already aware of their skills and analytical abilities — that’s why you hired them in the first place.
Consider feedback and ideas for growth that your workers may bring forward. The people with their boots on the ground of your business may have invaluable insights into what can be improved in this next phase.
Another vital piece of this puzzle is you, the entrepreneur. You’ve already gone through the process of opening a franchise at least once before, so you’ll be better equipped to anticipate and tackle the challenges that come with business expansion this time around. Throughout this growth period, take time to refocus on your goals for your business and yourself. Remember why you got into this business and what drives you to contribute top-notch quality and service every time.
Help is On the Way
When adding franchises appears to be the next step, rely on Kitchen Tune-Up to help get you going. As part of the Home Franchise Concepts family, you can rely on our decades of experience helping entrepreneurs to bring you the tools you need to thrive. We connect you with the resources and guidance that give you a boost while keeping you in control of your businesses.
Visit our Kitchen Tune-Up franchise development website to learn more about our extensive history of successful franchising opportunities, or inquire now to get more information about getting started.