Thursday, January 1, 2015

Franchising as Reproduction

Organisms grow rapidly at the beginning of their lives and are unable to reproduce during that initial stage of their lives. When they reach maturity and are able to reproduce, their growth rate decreases sharply or even comes to a complete halt. This is true not only for animals but for plants as well.

A company that has been growing along the years may then decide to open up additional branches or even expand through offering franchises. The original branch might not be experiencing further growth at such stage but would have reached maturity and is able to 'reproduce'. This mirrors the natural process which we see in living organisms. However, there might be a different approach to starting a new business and offering franchises right away or planning to start many branches from day one. This would not be the natural method and might not always be successful or sustainable. Many businesses fail when attempting to start and 'reproduce' at the same time. Yet still, some do succeed, the reason behind their success is simply because those doing the planning for such 'new' business probably already have prior extensive business experience and thus are considered mature and able to start 'reproducing' new businesses.