As a franchise owner, one of the main goals you set for yourself is to gain more investors. More investors means that your franchise will grow and expand, which is good for both you and for the franchise itself. While this is a good thing, it is not always the easiest to accomplish. There is the serious question of how to attract investors to your franchise. Thankfully, there are ways to do this. Below are some ideas on how to market your franchise to potential investors.
Create Win-Win Situations: This may be the single most important aspect in marketing to potential investors. People, not just investors, typically will only invest in something if they feel that they get some benefit out of the transaction. Most investors will not invest in a franchise if they do not see some angle of benefit for themselves. In a franchise situation, as in many others, the benefit for an investor will typically be profit.
Establish Your Credibility: In creating a win-win situation, you have to assure the investor that there will be a clear way for them to profit off of the arrangement. With well-established franchises, this can be an easy sell. If you are operating a new franchise, the burden of proof of financial success falls on your shoulders. This means that you have to convince your investors that your franchise will be a success financially for them.
There are several ways to calculate an investor’s return on investment, according to George Deeb’s article in Forbes. Some of these include average transaction size, cost of customer acquisition and return on marketing investment. Calculating these measurements can give an investor a good idea of the success of your company and can help you convince them to come on board.
Create a Great Pitch: While the solid numbers are something that investors will obviously be most concerned with, having a great pitch can never hurt. Having a great pitch can help potential investors to be more open to you. It can help give investors a sense of confidence in your franchise and can help put them at ease with the idea of working with you. According to Richard Harroch’s article in Forbes there are several key points to keep in mind when presenting, such as convincing investors of the large market opportunity, showing that you have traction already and not providing excessive financial details in the pitch itself.
Starting and growing a franchise is exciting and challenging work. To grow your franchise, you will need investors who can help. Marketing to these investors can at times be challenging, however. Thankfully, there are ways to do it. Hopefully the list above has helped provide you with some ways to successfully market your franchise to potential investors.