So, you have an interest in owning and operating a franchise? Or maybe you know someone, such as a family member, who shares your interest? Hopefully, this information is getting to you before you’ve completed your acquisition because many of the following points should ideally be addressed and prepared for prior to making any commitments to purchasing a franchise. The following are some of the higher priority points of relevance.
Entrepreneur notes the following points that are some of the characteristics or skills you will need to increase your chances of success.
1. Risk aversion: Any business start-up involves some risk of failure, but a strong franchise with a proven track record of success will minimize this risk. Successful franchisees do their homework.
2. System orientation: Don't shy away from franchising because you assume you need a burning entrepreneurial spirit to become a franchisee. That's simply not true. Entrepreneurs want to reinvent the wheel based on their incredible confidence in their ability to figure out how things should be done. Successful franchisees, on the other hand, want proven systems. They don't want to have to figure out the best way to do something.
3. Coachability: The motto of franchising is "In business for yourself, not by yourself." Successful franchisees look for opportunities to learn from others in their franchise system. They understand that they don't know all the answers and are willing to ask for help when they need it.
4. Hard-work affinity: No matter what franchise you're interested in, you can be sure it's going to take work to make it successful. The best franchisees know and accept that fact.
5. Strong people skills: Successful franchisees always have excellent interpersonal skills and can effectively interact with their employees and customers. They use these skills to create loyalty, value and trust.
The International Franchise Association provides the following perspective on what some of the keys to franchise success are.
1. Make sure you have enough money.
- Determine how much you have to invest, how much you're willing to risk and how much you will need to live on for at least 12 months.
- Listen to your attorney and accountant and do not be pressured by the franchise salesperson.
2. Follow the system.
- Franchisees often get their business up and running and then begin to change, add or modify existing products, advertising, hours, services, and even the quality and consistency they are licensed to deliver. This violates the franchise agreement and puts you in jeopardy of having your franchise terminated!
- By following the system, you:
- preserve the brand
- protect your investment and that of your fellow franchisees
3. Don't neglect your family and friends.
- Be prepared to work long hours, but also make sure to budget time for your family and friends.
- Don't forget to acknowledge the sacrifices your family makes.
- Allow your family and friends to share in your new life.
4. Be an enthusiastic franchisee.
- The success of any business is linked to the level of enthusiasm you bring to the job.
- Enthusiasm brings a level of excitement and energy to the operation that everyone can feel-including your customers and staff.
5. Recruit the best and treat them with respect.
- Good help is hard to find-great help is essential.
- To keep the good staff you've hired:
- Rotate routine and boring jobs.
- Don't show favoritism.
- Keep employees informed of new marketing and other promotions.
- Provide timely performance reviews and wage salary increases.
6. Teach your employees.
- In franchising, training should be continuous. Employees are your front line.
- Training classes are a good way to show your employees that they matter to you.
- Get all the training you can from the franchisor.
- Alert your franchisor when you need additional training.
- Take advantage of every training opportunity, whether it's offered by the franchisor or by local schools, trade associations and other sources.
7. Give customers great service.
- The most important thing you can do is to get everyone to smile!
8. Get involved with the community. Customers like to shop in places that support them.
- Sponsor Little League team
- Support a civic or youth group
- Give tours of your business for school groups
- Set up a kiosk at community events
9. Stay in touch with your franchisor and other franchisees.
The recommendations noted above are tried and tested. Take them to heart and we hope you will see some success with your franchise!
Useful Links:
IFA: https://www.franchise.org/what-are-the-keys-to-franchise-successEntrepreneur.com: https://www.entrepreneur.com/article/60986
FranDev: https://frandevelop.com/articles/10-tips-franchise-success.html