Minimising Risk When Growing Your Business

Minimising Risk

If you have built up your business to a level of success you are happy with, you should be very proud of yourself. It takes a great deal of hard work and perseverance. If the business model that you have developed is working, that’s great. You might, however, want to grow your business. I am constantly growing, evolving and expanding mine. The key is to be skilled at minimising risk when you do expand.

You may have decided that you would like to take your business to the next level. Any expansion offers risk and uncertainty, though. Economic uncertainty may be the major cause for concern (Brexit anyone?). Instability in the countries finances can bring about doubt for consumers and businesses alike. And, as everyone tightens their purse strings, companies need to hold back on spending. Expanding in a volatile climate could be problematic.  These are all valid point but expansion and growth can’t just stop because of uncertainty. You have to make sure that you take these points into account when planning.

Examples of Successful Routes To Expansion

There are other ways that you can go about building up your business. A good option would be to create a franchise model around your current business. With the help of a consultancy such as Lime Licensing, you could create a scalable version of your business that can be sold to outside investors looking at business opportunities. 

Low Risks All Round

The franchise model offers you less risk when it comes to expanding. You have grown your brand name and developed a working model for doing business. Your customers know and trust you. However, expansion into new towns and cities means enormous set-up costs. And therein lies your risk. 

By franchising out, the investor puts up the business set-up costs. They will pay a fee to you, and a cut of the profits. In return, they will get to trade using a known brand and using a tried and tested method of doing business. 

Minimising Risk When Building A Franchise

You will need to develop a complete package for potential investors. This means that you will need to determine every aspect of how their business is run. From products to sales techniques, paperwork, and procedures. If they are opening as a store, there needs to be a full set of instructions on how this should be set out. If the team is delivering customer service, this will need to be consistent and on-brand. 

Minimising Risk: Accountability 

You will need to ensure that all franchisees are accountable to you. You may choose to implement a way of auditing their standards to ensure that there is no deviation from the model that has been set up by your company. 

Through minimal input, you will have a business that has expanded without putting the work that you have already done at risk. You can keep expanding in this way, taking on new franchisees in different locations and continually grow. Is building a franchise the ideal way for you to expand your business while minimising risk? That all depends on you.


Written by