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All successful business can articulate a clear business model. This does not have to be complicated, but will often be based on an original concept, leading to a defined offering of products and services. This may well be linked to the thing that allows them to compete, creating a point of difference with other established players in the sector.
An established business will have formed strong supplier relationships, with a clear handle on cost control and the all-important matter of cash flow.
Franchise Angels will look at your market segmentation first, to understand who you are appealing to and where your turnover comes from. Following this, we will take a look at your ‘marketing mix’; the ‘4 Ps’ of Product, Price, Place (Distribution) and Promotion.
Franchising is driven financially from the bottom up:
1. Value for the Customer
2. Cash-flow to pay suppliers
3. Income (and asset security) for the Franchisee
4. Value to the Franchisor (that’s you!)
There must be enough in it for everyone, so the original source business must have demonstrably good financials, and this is a key consideration for us in the early stages.