Today's economy presents an interesting opportunity for businesses. In the United States particularly, International Growth is a hot topic. In this marketplace, businesses of all shapes and sizes should be scanning the landscape looking for opportunities and niches that could present immediate cash flow and growth potential. In today's market, the United States has many great opportunities in different markets around the country. The problem is that some businesses are not located IN those markets. This is where franchising and license development comes into play.
By franchising a business, organizations can effectively deleverage their risk and dependence on a local market. By opening new locations in other markets, a franchise organization can take advantage of areas that have growth potential in the coming months or years. This is even more true in the scenario when considering international growth.
In the past, many companies and businesses in the United States would be a bit of the "Island Syndrome". Meaning that there was enough market and enough opportunities in the U.S. and in many cases even within the state where the business was located. Now that the economy has tightened overall, many businesses are being forced to find new opportunities for growth. Around the globe, there are many countries and regions that are and have experienced rapid growth while certain areas of the United States have stagnated. This brings about a new era for many U.S. based businesses - International growth is not a "nice to have" it is a "must have".
How does a business make the transition from a local organization that serves customers in a regional area to one that provides products and services around the world? Franchising and Licensing are viable options for International expansion in many business segments.
Franchising a business is a leveraged way to expand an operation, through the structured, defined process of training someone how to run a business model. Franchising internationally is one of the most efficient ways to begin marketing and selling products and services in another region of the world. A International franchise sale lends several key attributes to a business partnership's success.
1. The International franchise buyer will know and understand the market better than you will.
2. You will not want to invest your own capital in a foreign market, let the franchise buyer do this for you.
3. Managing another location in another part of the world is extremely difficult, a international franchise buyer will have the ownership interest in that business and will be responsible for what happens there.
4. International franchise expansion grows your brand in other countries and other parts of the world which increases your brand equity and company's value.
5. An organization that is truly International in size and scope is generally considered to be a premier company in any industry segement.
For more information on franchising and International Franchise development,
Franchise Marketing Systems -
FMS is a team of expert franchise consulting professionals based in Canada that provides solutions for franchise development, franchise consultation, and expansion of businesses globally.