How To Exit Your Franchise Profitably
Keep your business records in order
Business records are the evidence of your activities, transactions and successes. Being able to document the kind of customer you acquire at certain times, and the process you undergo to generate leads, provide valuable insight to an incoming business-owner. Most franchised companies provide their franchise team with a central customer management system – be sure to keep yours up-to-date.
Understand the potential of your business
You must be able to explain why your business is a great buy compared to a competitor a few blocks away, or any other business opportunities with the same investment value. The ability to communicate this to any prospective buyer is crucial. Do your research and get your facts right. When possible, have a business forecast prepared to enable you to keep on top of the numbers in your business. Remember why you bought the business and transfer that emotion and enthusiasm to potential buyers.
Plan your marketing and ‘show-around’ time
Timing has a lot to do with your success. Selling your business when the season is low or there’s hardly anyone in your shop can work against your asking price. Therefore it is worth considering marketing your business for sale leading into the busy season of your operations. Look for the best media for your industry or sectors, and aim to generate a few leads rather than settle for one or two enquiries. For best results, consider investing or hiring a franchise sales consultant to get the most out of every lead you generate. Remember, every opportunity lost is adding cost to your sales process. Keep an eye on your exit costs.
Being in the position to sell a business is a great achievement for any business owner. Your franchisor will have a wealth of knowledge in your specific industry or business. Always secure guidance and additional support where you need it.
After all, franchising is a win/win investment opportunity.