Business Strategy · Franchising

How to design a strategy to develop international startup?

Rinat Bakiev Sales hero

March 10th, 2018

I'am founder of a start-up that can not be global, but it can be local (only for one country).

I have idea to use a franchise as marketing tool to attract potential business partners, but on the first steps I think it is right to find the co founders for some countries. How do you think it's right strategy?

Paul Garcia marketing exec & business advisor

March 11th, 2018

Before you can sell a franchise you MUST have a complete working model of the business in operation. People must be able to inspect the systems, documentation, and proven success of your initial model before they will ever consider franchising the concept. Franchises succeed because the original location has already tested, proven, refined, and documented everything they will need to know to start. The most important part is the proof that the business works. You are still at the idea phase, so you have a long way to go to know if the basic concept is even something that can be franchised. Because the regulatory environment, market, demographics, and such will be different in every country, you will face a very tough time convincing anyone that the model that works in one country will work in another.

Your strategy needs to be proof of concept in EACH country that you want to franchise. If your intention is to only allow one franchise per country, then you should be the one establishing the primary location in each country with the objective of getting it running properly so you can sell the operating business to a local person who will continue its operation under your agreement. Don't expect others to take risks that can't be estimated across borders.