You hear people talk all the time about scalability, but what exactly does that mean? I would recommend that you find out exactly what that means as it relates to the Franchise you are thinking about buying! If you are not buying into a “scalable” system, then what you might be saying is that you're content with NOT growing your business. For example, have you ever watched the TV series Shark Tank? In this show, one of the first question they ask is, "What are your revenues?" Another good question that they ask is, "What were your revenues last year?" They ask this, because what they really want to find out is if the model growing, if it's creating more revenue than it did last year, and if it's scalable. Scalability, the ability to grow revenues and expand on an ever increasing workload, is one of the main characteristics of a franchise system. This is where the link can be found between the systems that the franchise has in place, and how those systems function under the ever increasing revenue that is produced. There are lots of ways to measure scalability for lots of different business models, but here are some of the most important when it comes to franchising;- Is there a market for the service? Without demand for the product, how will you grow?
- Can you teach someone else to do it? Scalability relies on the fact that whatever you are doing can be taught to some else who can then teach it to others.
- Standardization: Can it be repeated successfully over and over, the same way, and continue to produce more and more revenue as it grows?
- Recurring revenue: I would venture to say that very few franchise models can survive without services or products that meet a need and require customers to come back again and again to get them.
It's a fact that running a business can be hard work and encompasses many challenges that most people have never encountered. But it's arguable that when you invest into a salon franchise system, you have a greater chance of success. Plus, most salon franchises (like Shear Madness Haircuts for Kids) do offer the advantage of a successful business history and scalability. However, as implementing a salon franchise system does take effort, you'll want to make sure all your questions are answered through doing a little research. Contact salon franchises, reach out to the franchisors, and compare business models! You'll also want to take a look at the Franchise Disclosure document, the Franchise Agreement, and talk to current franchisees. Seek out a franchise business that currently has a long track record of success. Keep in mind that the franchise system itself may be younger than the actual concept itself. Find out how long the franchisor has had a history with the concept itself. Have they really figured it out before offering the franchise?
Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons, and we have worked with our franchisees in growing their business and making sure they are on a path to success. Why? Because having someone who can offer expert advice on growth and scalability is one of the significant advantages of franchise ownership! And simply put, scalability as it relates to franchising allows you to consistently grow your revenue in the future, just like the Sharks on Shark Tank like it to!
Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!
