When talking about 100x growth, what's the first thing that comes to your mind?
So what if I tell you that small businesses can also experience similar results without having to look for investors?
Nick Friedman, the owner of College Hunks Hauling Junk, a junk removal and moving company, did exactly that.
Instead of relying on outside money, Nick used the franchising model to grow his company at an insane pace, and today College Hunks Hauling Junk has over 100 franchised locations in the United States and Canada.
Now, I spoke to Nick on my podcast recently, and got him to share his thoughts on why franchising is perfect for entrepreneurs who want to 100x their businesses. According to Nick, here are the three most attractive things about the franchising model...
You can expand much more quickly, and in many different locations.
As soon as you sell a franchise, you get a financial injection to your business.
You get to work with folks who are truly invested in your business (because they're owners, and not employees).
The results, of course, don't come without hard work. It's not just a plug-and-play solution; you need to create the right circumstances for your franchisees to grow. Here are some of the best tips I learned from Nick when it comes to the franchising model:
1. Provide everything to help your franchisees succeed.
Before you launch your franchising model, make sure that you have everything documented.
We're talking Standard Operating Procedures (SOPs), user manuals, guidebooks, sales kits, and all that good stuff.
The key reason why people buy franchises is to tap into an existing company's branding and expertise. Ultimately, you want your franchisees to take advantage of your processes and operating systems -- this way, they'll make less mistakes of their own and turn profitable more quickly.
If you haven't already done so, start creating step-by-step processes of the most important activities in your company. The more materials you can provide your franchisees with, the easier it'll be for them to succeed!
2. Keep an eye on your franchisees
You'll need to monitor two things: firstly, your franchisees' overall performance, secondly, their customer service.
If your franchisee doesn't seem to be making much revenue, step in and troubleshoot the problem. When it comes to customer service, make sure your franchisees are treating their customers right (remember: any bad experiences that their customers might have will reflect badly on your brand as a whole).
The best way of doing this is to use a great CRM system -- one that gives you an overview of your franchisees' performance and their support requests. This way, you can take action as soon as you spot a problem.
3. Create an environment for them to thrive
One of the key things Nick does is to organize mastermind groups for his franchisees, where everyone shares best practices and innovative ideas.
Pretty smart, huh? The goal is to get your franchisees to learn from each other so that they can overcome their challenges, and grow even faster. It's like a support group, but even better!
The franchising model is a great shortcut to 100x growth - but that's only if you're willing to invest the time and effort into making it work. The more you support and empower your franchisees, the more your business will grow.