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Expanding your Business

Expanding your Business. YPK – Lunch & Learn. August 15, 2012. Basis of Interaction. This is a discussion….. It your business – lets talk about it…. Statistics – Private Sector (Statistics Canada) 48% - of labour force – Small Enterprises (< 100 empl ) (5.1m)

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Expanding your Business

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  1. Expanding your Business YPK – Lunch & Learn August 15, 2012

  2. Basis of Interaction • This is a discussion….. • It your business – lets talk about it…. • Statistics – Private Sector (Statistics Canada) • 48% - of labour force – Small Enterprises (< 100 empl) (5.1m) • 16% - Medium Enterprises (100 – 499 empl) (1.7m) • SME = 64% private labour force (6.8m) • Other 34% - government & big business?

  3. Methods of expansion • Internal • Work harder • Appoint more staff • Get a partner/s • Other? • External • Open another location/store • License businesses to use your system • Franchise your business • Combination • Other? • USA - Franchising commands a staggering 43% of the nation’s total retail sales and service dollars - Jerry Wilkerson, Founder, Franchise Recruiters, Ltd. • Further discussion based on franchising • For purposes hereof: The word “Franchising” = Expansion

  4. First things First Do you have a franchiseable business? • You own and operate a business • You make a profit • Your business is distinct, special or unique • You want to expand • You are financially able to invest in your expansion

  5. What is franchising? • Franchising is the practice of using another company’s successful business model to your own benefit or • A form of business organization in which a company (franchised business) • which already has a successful product or service (the franchisor) • enters into a continuing contractual relationship (franchise agreement) • with other businesses (franchisees) • operating under the franchisor's trade name (license) • and usually with the franchisor's guidance (training) • in exchange for a fee. (royalty) • Examples: Subway, McDonalds, 7-Eleven

  6. Why is franchising popular? • Easy to set up • Best practices immediately – no learning curve • Relatively low set-up costs • Brand recognition – multiple locations • Purchasing power • Consumer confidence - no surprises • Manager is the owner – own boss • Combined marketing, branding, etc. • Increased profit = lower than royalties • Ongoing support & training 95% of all franchises are still in business after 5 years

  7. Why franchise? • People prefer franchised businesses • Most cost effective growth model • Accelerated growth potential • Supplements your existing distribution system • Process increases your current systems, controls and management. • Protect your business model • Pre-empt competition • People pay you to expand your business!

  8. Best practices Businesses for which franchising work best have one or several of the following characteristics: • A good track record of profitability • Easily duplicated • Detailed systems, processes and procedures • Around a unique or unusual concept • Broad geographic appeal • Relatively easy to operate • Relatively inexpensive to operate

  9. Franchising process • Franchise feasibility and viability study • Develop the concept, business and franchise model • Enable the franchisor • Prepare and finalise documentation • Canadian Franchise Association • Develop manuals (Usually consist of 3 sections) • Recruitment & Selection of the prospective franchisee, • Pre-opening manual, • Daily operations manual (15 sections) • Launch the franchise network • Manage recruitment process

  10. What can we do for you? • Save you time & cost of developing the administration – allowing you to focus on your business • Franchise coaching • Evaluate your franchise system • Franchise feasibility and viability study • Develop the concept, business and franchise model • Enable the franchisor • Draft legal documentation • Franchise Association • Develop processes and manuals • Manage recruitment process • Chair franchise forum meetings • Annual franchise system review • On-going support • Give you the benefit of previous experience

  11. What are the experience benefits? • Corporate identity and brand development • Training models and implementation • Websites and Intranet • Franchisee financing • IT solutions • Increasing sales – techniques • Alternative business solutions – problem solving • Ongoing involvement

  12. How do franchises come aboard? • Awareness of the opportunity • Vetting process – Recruitment and Selection • Disclose • Sign a franchise agreement • Pre-opening actions • Training • START BUSINESS • Daily operations and franchise management

  13. “Thank You”Look out for the last L&L opportunity:Aug 22 - Business planningBookkeeping (Pat Smith - EPR) Risk Management (John Becker)Insurance (Desiree Perdue)Responsible person: Lisa Frey (John Becker)Assisted by: EPK and Don McClean emollema@beckerlawyers.ca – www.beckerlawyers.ca

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