At Least One Pilot Business Needs To Be Established
Pilot Business
It is usually essential to the development of a franchise network that at least one pilot business be established.
A pilot business can be essential to insure that franchisees or potential franchisees can be satisfied that the success of the business is not dependent on what might be considered a unique location or a charismatic leader.
Also a pilot business will allow you to recognize and sort out problem areas in relation to marketing, acceptability of the product or service, local planning requirements, building regulations, health and safety requirements, and other similar problems relating to the type of business the franchise operates. It will also enable the franchisor to test different layouts and designs in order to discover the best combination.
Training in the operational side of the business as well as teaching management skills will be essential. In developing the pilot business, you can gain valuable experience in relation to the introduction of straightforward and efficient methods of accounting, and controls.
A real franchise is put into operation. Here is where all the procedures and processes, including the nitty gritty details are implemented in real life.
As expected, there will be problems in the business which are not stated in the operating manual. Thus, problem-solving and evaluation is the major activity at this stage. Corrections made should be documented in the Operational Manual.
