Buy A Franchise – The Concept of Franchising

September 9th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Today I am going to deviate from providing information regarding many of the Franchise Opportunities that are available in the marketplace, and focus on the Concpet of Franchising itself.  .

In order to truly understand the concept of Franchising, an exploration of the basic concepts of business is required. There is no magic in that. It just makes sense in order to provide clarity about the Franchising strategy.

Franchising is not a business in itself. It is a business strategy. It’s a business system. That’s a significant distinction that isn’t always clear. McDonalds is in the fast food business, although many people feel they are really in the real estate business, while others think they’re in the entertainment business. Regardless of that discussion, they are not in the business of Franchising.  Ramada is in the business of operating properties. Snap-On Tools is in the business of selling tools, etc.

If someone says to you that they’re in the business of Franchising, they don’t really get what they’re doing. It’s all about the customer, and if the focus is not on the customer and their needs, then something is awry. Customers don’t need a Franchise. They need hamburgers, telecom consulting, hotel rooms and tools. So therefore Franchisors are not in the business of Franchising.

There is a credo that says that “Good is the Enemy of Great”.  First of all, if greatness is to be achieved, focus must be completely on the customer.  You have  to strive to have your customers clamor for your services. If we’re satisfied with being good at it, they willl never be great.  If we want to be great, our focus must be entirely on the customer to achieve that goal.

Purpose of Business

O.K, so let’s look at the purposes and objectives of business, regardless of whether the goal is to be good, or great.  I don’t think anyone has a goal to be bad, so we’ll leave that one out.  First of all, the basic purpose of business is to make money.  It is not about your way to give back to humanity.  That’s a charity.  People that wish to be in business for themselves are doing so in order to make money.  That shouldn’t be a surprise to anyone.

So how do all businesses make money?  As stated above, they focus on the customer.  Therefore, the purpose of daily activities, the objectives of business, are to get new customers, satisfy those customers, keep the customers, and grow business, either with, or through those customers.

Get, satisfy, keep, and grow.  There you have it.  These are the purposes of business.  The other four will be discussed in Part 2.  You can’t think of a transaction that happens in business that isn’t aimed at one of these four things.  The key is to understand that they are four distinct things, and they each require distinct strategies designed to achieve excellence in all four areas if greatness is to be achieved.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise).

Popularity: 2% [?]

Trackback URI | Comments RSS

Leave a Reply