Very much like life, business owners find themselves in some form of crossroads. Some situations would need minor decisions but some can be “business-threatening.”

The digital age was a crossroad for Kodak which became the stellar company on film and print development. Did Kodak survive when it got to the crossroad? Look around you and see the number of Kodak Express you still see offering printing from USBs, CDs and simply from out of your cameras and mobile phones.

One of the more difficult crossroads a business faces is expansion. One case study in New York Times aptly puts expansion crossroad this way, “Looking to Expand but Fearing It.”

Are we really apprehensive about expansion? Which route do we take? Do we establish our own stores and have organic growth? Will dealers/multilevel marketing do? Can we look at franchising as our route to expansion?

As you will see we are staunch advocates of using franchising as a route to expansion. The numbers should convince the business owner to take a hard look and see why franchising can be the expansion route to take at the crossroad.

In the Philippines alone, there are over 700 homegrown franchise systems operating. These systems have grown from one or two branches to hundreds and even thousands. Franchising has been referred to worldwide as the “single most successful way to expand.”

What are the usual fears of a business owner thinking to grow through franchising? These are some of the many questions I am asked when I sit down with entrepreneurs:

·      Will they take care of my business the way I took care of it?

·      Will the quality of my products remain the same?

·      How will I handle franchisees?

·      Will they demand from me all ads and promotions like the big franchisors?

·      How will I build my organization to support the franchisees?

·      Do you think I will not get to court case with my franchisees?

·      Will I really understand what franchising is all about?

·      How do I manage business owners like me?

While the questions and fears may be an unending list, the fact remains, business owners like you have arrived at the crossroad and have decided to take the franchising route. You only have to look around and visit the malls and to see the number of franchised branches operating.

Managing the business crossroad can be tough as there will be numerous fears and dissenting opinions on the road to take. But how have entrepreneurs turned franchisors managed the crossroad?

They went back to basics, clarification of their goals both short and long term.

Most of our successful clients had a single and unwavering commitment to their business concept. Theirs was the courage to push their businesses to levels higher than where they are. The flip side of this commitment is confidence in the potentials of their business. This enables them to take on most of the opportunities that come their way even with the unforeseen future. They will make the “leap of faith” for their business.

Their commitment to the business extends beyond their own margins and profitability, they desire success and financial returns for franchisees that they will have. It is not strange for some of them to say to us, “I am willing to compromise my company’s gross margins just so my franchisees recover their investment shorter so they will be happy.” Successful franchisors realize that the success of their brand highly depends on the success of their franchised branches and ultimately their franchisees.

Managing business expansion crossroads will also imply that entrepreneurs possess the openness to a completely new set of experiences they will face.

They actually look forward to these and they are eager to learn anew. Whether it be talking to franchise applicants or opening stores of franchisees or even having dialog with problematic franchisees, these franchisors look at them as new expansion experiences that will assist them in strengthening their brands.

This openness can be challenged more particularly when one has franchisees suggesting new products and services. Will they feel threatened or will they validate their suggestions? Some successful products of McDonald’s came from the suggestions of its franchisees.

Entrepreneurs have alternative ways of managing business expansion crossroads and if you are at this point in your business, I suggest you learn from the experience of those that have managed their expansion crossroads. You may take a different route but at least you know what you are giving up.