Businesses go through growth stages and the particular phase of growth that a business is in will have an effect on the outcome of its ideal franchisee profile.
Companies grow and change over time. This evolution can be caused by a number of factors: competition, advances in technology, market changes or the availability of resources. Knowing what stage of growth your company is in can help you identify what type of candidate profile is most likely to be attracted to and succeed in your business. In other words, newer companies will attract a different type of potential franchisee versus a more established concept.
For instance, a startup concept is just getting up and running. It’s an exciting time as the owner is probably still trying to feel around setting up those much needed operations and systems. It’s essential at this stage that the franchise is surrounded by franchisees that will help establish the brand and set the foundation for the brand as it grows and expands into new markets.
A franchisee profile at this stage will require candidates who are willing to roll up their sleeves and really be involved in the business. This will be a candidate who will be excited to provide valuable feedback as those operations and procedures we mentioned earlier continue to be developed. And as an early adopter, this candidate will see a startup and the added risk as an opportunity to make their mark, provide input, negotiate better terms and take on a new responsibility.
As you enter the next stages of growth your business model will adapt and so will your ideal franchisee candidate profile. On the opposite end of the spectrum is a mature, established brand.
An established brand has its procedures and processes in place. The product or service and procedures have been fine tuned and perfected. Compliance is expected at this point, and there is much less risk involved because the business model has been tested and proven to be successful.
As a result, the ideal franchisee profile will look much different, even if this is the same concept that has gone from a startup to an established business. The ideal candidate, for example, will likely be more averse to risk and have no problem following rules and procedures. They will like that the brand is well known and are looking for an opportunity that may even allow them to manage a manger, also known as a semi-absentee concept.
What stage of growth is your business in? At a certain point, it’s important to revisit your ideal franchisee profile and make sure it is still aligned with the current phase your franchise is in. If you are interested in learning more about identifying your ideal franchisee profile, contact Proven Match today.