If your business needs to expand rapidly and you don’t have the capital then you should consider franchising your business. The capital you need for expansion will be provided by the franchisee so that your business can go to the next level without touching your capital. In fact your costs can go down and you will have a higher ROI. But before you start offering your business for franchise you have to evaluate if you business is ready and if you are ready to be a franchisor.

•    Your business should be unique. Franchisees often look for exciting products like a new fastfood or technology. A strong trademark will also make your product stand out and be recognizable.

•    Your business system has to be teachable. It should be easy to understand and properly documented so that others can learn it in a short period of time.

•    You should be credible. Franchisees do not only look at the business but the business owner. You will have a long relationship with your future franchisees so it is best to start off with the right foot.

•    You should be flexible. Being a sole proprietor is very different from being a franchisor. You will need to revise your management style to handle your new customers and competition.