You are a new franchise owner or are seriously considering buying into one. Franchising provides a proven business model, but your due diligence can save you a lot of grief. Here’s how to help your franchise succeed in most any business environment.
Select with care. Your relationship with a franchise company can make or break you. If you are have a good franchisor, your relationship should go swimmingly. If the franchisor has a bad reputation or simply is not organized, then you will suffer. Only choose a franchise system that is right for you. Find a business you like and a business model you can embrace.
Know the system. Every franchise system is unique. Sure, some do a good job copying what others do, but ultimately a franchise system is set up by the person who founded it. Learn the system inside and out — become a student of that system soaking up everything you can learn about it. Follow the methods as shared by the franchise or and you’ll be a well worn path to success. You may have some ideas of your own but take care: you don’t want to stray too far from the proven business model.
Respect everyone. You know how important customers are to your business and you show them respect. That respect must go to your staff and also to the franchisor representatives. Your franchise liaison is the person who will go to bat for you as needed. If you have a good relationship with this person that it makes your job easier to do. Yes, they must answer to the corporate bigwigs, but they also want to work well with you.
Marketing like you mean it. Your franchise system has their own marketing scheme in place, Something that you must follow. However, they’re mostly responsible for National and regional advertising leaving local marketing to you. It is important that you make a name for your business and your local community. This is where certain freedoms of franchising are best enjoyed by franchisees. Consider sponsoring a youth sports team, supporting a local charity for taking on some other initiative that benefits people who may include your customers. Marketing never stops and it can take a number of different approaches.
Develop a business plan. Although you are a franchisee you still need to have your own business plan in place. Such a plan is important as it will outline the steps you must take to help ensure success. Simply set some goals that you would like to reach within the first three, six and 12 months. These can include: Financial projection or possible expansion.
Build a winning team. Some franchisees prefer to serve as owners the turn over the reins of the business to a competent manager. This is important for people who prefer to have a financial investment but leave the day-to-day operations to someone else. Your general manager should have your best interest at heart. This means you need to carefully select who you want to manager franchise, An individual who will be in close contact with you at all times.
Know your competition. You know your franchise system very well, but what do you know about your competitors? These are people who look at your business as a threat to their own. You may be battling for the same customers, therefore the same cash—you should know full well that they’re keeping a close eye on you. So do likewise.
As you grow your franchise it is important to know everything about your industry. Keep up with the changes and make suggestions to your franchisor on what changes your company might make. Maintaining a good relationship with your franchisor can put you in the running for new opportunities. Running a franchise is a challenge, but it can be immensely exciting and a rewarding experience too.
See Also — 14 Businesses You Can Start on the Side