17 Elements To Consider To Become A Successful Franchisee
Owning and running a franchise is a great way of starting your own business, but you need to know what you are getting into, whom you are partnering with and what it takes to be a successful franchisee. But more importantly, you need to ask yourself do I have the right personality to be a franchisee?
Wondering how to you can be a successful franchisee, here are 17 elements to consider:
1. Choosing the right franchise and be passionate about it
Before you sign the agreement and invest capital., you will need to conduct investigation, audit, or review to confirm the facts and financial records presented to you before entering a proposed transaction with the franchisor. and extensive research before committing to any new opportunity. You need to be passionate about what you do as this drive’s success.
2. Business and finance insight is the root of a successful franchise
Running a franchise requires the franchisee to have some financial knowledge to do basic accounting for the business and to monitor performance.
3. Pay attention to detail
As a franchisee, you will need to pay attention to detail. In franchising, this relates to careful consideration of quality standards and considering the whole picture when dealing with customer complaints, financial performance analysis, etc.
4. Be a salesperson
Franchisees need to be sales orientated to generate profits.
5. Be a leader and communicator
You need to be a successful leader who can influence others, make decisions, and motivate staff by communicating effectively and leading by example.
6. Be a risk-taker
Even though the risk is reduced when investing in a franchise opportunity in comparison with an independent start-up, a franchisee should be comfortable taking calculated risks that will help their business grow
7. Be result-driven
Although you buy into a proven business model, it is ultimately up to you to make a success of your franchise. You will need to set measurable goals to stay focused and on track to ensure that you will be a successful franchisee. To be result-driven you will need to have planning and organising skills to manage tasks and goals effectively.
8. The people make the place so employ skilled and motivated staff
Employ the right team and ensure that they have sufficient training initially and ongoing to deliver exceptional service.
9. Take ownership and be involved in running your franchise
Being a successful franchisee is dependent on how well you work on the business, not just in the business. You do not have to do it all yourself, you can employ people to deliver the service or sell the products, but you need to manage it and be an owner-operator. You need to determine how much time you will need to invest to make a success of the franchise. A good franchisee will take responsibility for their actions.
10. Be persistent and determined
Starting a franchise takes persistence and determination to become profitable and ensure sustainability in the long term.
11. Follow instructions, rules, and regulations
Franchising requires you to follow a specific set of business practices and procedures that needs to be implemented by all the franchisees in the network. The franchisor will provide you with an operations and procedure manual, it will be wise to utilise and implement this as a tool to run and manage your franchise successfully, just like using a user manual to put a device or furniture together. The policies, rules, regulations, and systems are part of the proven method to ensure that the franchise is managed optimally and effectively. The ability to follow rules and not have authority issues is not only expected by a franchisee but a requirement.
12. You need to have a thick skin
A successful franchisee can handle advice and criticism, you will need to persevere, take advice from others, and not be offended by feedback from the franchisor, customers, or your staff. You need to be able to cope with pressures and setbacks, maintain a positive outlook as well as control your emotions in difficult situations.
13. Constantly network and socialise
Building and maintaining long term relationships with your network is of the utmost importance whether it be with your franchisor, suppliers, other franchisees, staff, service providers or customers. You will gain great knowledge and insights by doing so.
14. Patience is key
You need to be realistic and open-minded when purchasing a franchise, as you will not be profitable from day one. It will take time to see success and will require long hours, commitment, and drive to achieve the desired results.
15. Be prepared to do a lot of local marketing
Just because you are part of a franchise brand and you pay a national marketing percentage of your profits, does not mean you will not need to allocate budget for marketing and implement initiatives in your local community/area. Marketing will drive sales and sales contributes to the success of the franchise.
16. Tap into your support system
In franchising you are never alone, you will receive support from the franchisor and their field support consultant. You will need to accept training and guidance from the franchisor. Ask for assistance when things are not going as planned, do not be afraid or ashamed to ask for support and advice when needed.
17. Willingness to continuously learn new things
Owning a franchise will be a learning curve, and a franchisee needs to be willing to learn and grow. No matter how much experience you have in a sector, nothing prepares you for the first time you must operate and manage your own business. The franchise business is always evolving, and the franchisor will be equipped to train you on all the new technologies, skills, changes and tricks to improve your business and to ensure that you remain relevant in the market. Every circumstance you may face in your franchise operation should be viewed as a learning experience that improves and grows your franchise.