Is it time to expand your franchise portfolio?

It’s no secret that there are numerous benefits to owning a franchise. More freedom and control, a sense of community and a clear path to success. But franchises have even more to offer. If you’ve opened your first franchise and are thriving, it may be time to start thinking about expanding your business.

Across the US, tons of franchisees are opening second franchises or multiple locations of the same business. This trend has grown in recent years, with some franchise sectors having up to 50% of franchises as second businesses or locations. Not to mention that fast-casual and fast food is one of the most popular options for second franchises.

This can be a great way to diversify your portfolio and income. So, are you ready to think about a second franchise?

We’ve put together a quick guide to answer some of the questions about your new business venture.

1. Assess your current success. If you’re waiting for the “perfect time” to open a second franchise, you may be setting yourself up for failure. As with most decisions in life, there is no perfect time. The answer, instead, depends on your current level of success, the economic climate and your next franchise outlook. So, first, gauge the success of your current franchise.

Begin to evaluate this through these questions:

• Have you researched the market for your next franchise idea?
• Do you have the necessary finances to launch a new business?
• Do you have enough cash flow for your new location to sustain itself until operations start running smoothly?

Most importantly, look at your current financial situation. Make sure your current business ventures are profitable to minimize the chance of cash-flow interruptions.

2. Look at new opportunities. Next, you’ll want to start diving into research. There are tons of franchise opportunities available. You’ll want to make sure you’re choosing the best one that fits your needs and interests. You’ll also want to be sure that there is adequate training or support opportunities if you choose an area you are less familiar with. Make sure not to rule out a business without learning or seeing the operations first.

Look at new and exciting franchise options online. Look out for any voids in the marketplace or your community, as well, and think about what might fill the void. Look to your own interests and likes for options, too.

3. Examine your goals. You’ll want to think about your own happiness and sense of fulfillment in your current franchise during your assessment. Are there other skills you’d like to explore? Do you have another passion or interest that isn’t encapsulated in your current franchise? Maybe you’re just ready for some new excitement and challenges?

Look at your existing skillset, too. Evaluate what you do well and what skills might signal that you’ll be successful at running multiple locations. Are you a great organizer? Do you excel at people skills or hiring practices? Take note of all your successes.

To fully evaluate your current and potential skills, ask yourself a few questions, like,

• Do I have experience running multiple businesses? If not, do I have skills that might transfer to other industries or businesses?
• What is currently missing in my franchise location? Are there things I’m passionate about that I am not doing?
• What other things would I like to be doing that I’m not doing now?

These steps are a great way to understand when to expand your franchise and what industries to explore. We’d love to talk to you about the next stage of your career.