[Opinion Piece] 3 Predictors of Success in a Franchise Business
The prospect of starting your own franchise business is always an exciting one. When starting out, hopes are high, goals are set and entrepreneurs are eager to turn the franchise into a lucrative empire that will exceed their wildest dreams. The reality is, however, that there really is no crystal ball that can share revelations on a business’ success. Even in the business of franchising, in which the achievement rate can be increased by 80% or more due to the support and structure it provides, success is never a sure thing. Managing Executive of The Fish & Chip Co, Jan de Beer does however feel that there are certain elements and characteristics that a franchise business owner expresses that can predict their triumph in business.
While there are a few determining factors to consider, such as adequate funding and a prime location, the real forecasters to success go deeper than the obvious. Even if an entrepreneur feels they have what it takes to make a business out of their talents, not everyone will be able to quit their day job, walk into a business arrangement and make it successful. The questions then remains, which predicting factors can lead to a business making or breaking the bank?
Here are some of the top three predictors of success in a franchise business:
1. Social support
Whoever once said ‘there is no I in team’ was a wise soul. A franchise business owner needs support from those around them. Whether it be the team at the office or store or the team that is comprised of friends and family, no man/woman is an island. Aside from support affording the owner an extra set of hands and ears, it is also known to be exceptionally important for maintaining good physical and mental health. Overall, it appears that positive social support can enhance resilience to stress, and also help to provide protection against developing trauma-related issues.
2. Passion for the brand
Passion and progress go hand-in-hand. Without unwavering enthusiasm for and belief in what you do, you will not be able to move forward. Passion is what sparks innovation, inspires action and keeps the team involved. If an owner finds themselves questioning the success of their franchise business, it might be best to go back to the drawing board and reignite that passion that inspired the business concept to begin with.
3. Pro-active thinking
Planning and preparation prevents poor performance. If an owner is not planning ahead and thinking pro-actively, the franchise will never follow the course set for it. Aside from that, an owner will become so focused on resolving the issues he/she did not consider that they will take their focus off of the success of the business and the progress it could be making. Pro-active thinking leads to better time and risk management, higher morale and continuous improvement. The moral of the story – course correct before you need to start putting out fires.
Of course these elements are not the only predictors of success, these other aspects could impact the success of a franchise business, such as:
- Leadership styles,
- Business acumen and
- Sales orientation
The ultimate indicator of success is not something that can be bought or sold. It comes down to the commitment and resilience that an owner has to never stop fighting to be successful.