Sometimes, the franchise location or concept determines success; however, many of it has to do with the franchise. Avoiding pitfalls and making smart decisions in all steps of the way can really make a huge difference to your bottom line and the viability of your franchise. Below are some ways to improve your chances of having a successful franchise.
Select the Right Business
Franchisees who have skills which match their business are expected to do better than people who aren’t in their element. However, how will you know that you are buying the right concept? The secret is to consider what you like to do. For instance, if you have a passion for technology, find a computer-related franchise concept. If you like children, look for a franchise which lets you work with kids. But do not just consider the service or product. It is also imperative to take into account your actual tasks every day. Perhaps you love to cook; however, owning a restaurant is more than just food. Indeed, you will perform major tasks such as managing, recruiting, training and firing employees.
Improve your Business Skills
Although you will be taught by the franchisor about their system so that you can build a successful branch, most franchisors expect you to have fundamental business skills. In case you do not know accounting basics, reading and working with financial papers or hiring and firing people, expect to face problems.
When you have rusty sales, your know-how of business taxation is a little shaky or you don’t update your internet marketing knowledge. Think about taking a class in order to improve our skills. Upgrade your knowledge every year. Usually, such classes are available at a local school. In fact, you can find one-day seminars which take less money investment and time. Also, you can consider the service of a franchise consulting agency for more guidance.
Follow the Franchise System
One of the reasons you select a certain franchise is because of its successful system. To be successful, it is imperative to learn the system. During the training, absorb everything you are taught with. Read manuals continuously and work with other franchisees. Never listen if franchisees try to tell you their strategies are better than that of the franchisor.
Implementing changes by yourself, especially during the early days of your operation, could put your business at risk. Avoid trying to be a rebel. Changes must only be made after you talk about your issues at length with a field representative.
Create a Business Plan
Although the thought of creating a business plan can be intimidating to you, it does not have to be. It just requires you to set goals and do a financial projection for the following year. If you are doubtful, ask a fellow franchisee or your franchisor for advice on how you should proceed.
One of the best things about a franchise system is that you get support from the franchisor. But, your franchise’s ultimate success or failure is your responsibility. Sure, the franchise will train you on their system and provide you the tools necessary for building a business. However, it is you who will run your business every day. If you have questions, you can contact the franchisor but you will make all the decisions.
Continue to Market the Business
As a franchisee, it is your job to sell and market your service or product. Do not wait for reminders from your franchisor. FranFrog recommends focusing on getting your marketing out there at all times, analyzing the every method’s effectiveness and sharing effective strategies with your fellow franchisees. Focusing more on your administrative tasks than marketing initiatives can limit your success.
Hire Somebody Who Can Sell
Sales are an important part of nearly all franchised business. In case you do not feel comfortable handling such task, look for somebody who does. Ask help from fellow franchisees or the franchisor whose staff is composed of effective salespeople. Rather than hiring somebody just like yourself as you really like him, understand that as a business owner, you have to leave your comfort zone and recruit somebody who has a different skill set and personality.