However, for all the benefits of franchising, one important fact is still crucial. Your business's health and future are in your hands!
So, here are five tips to build a successful franchise business.
1) Do lots of research and planning
There are so many business opportunities in the world of franchising, and knowing which option is best for you takes time and patience.
A lot depends on how much cash you have to invest. Are you particularly keen to find low-cost franchises for sale, or are you looking for something like hotel franchises that demand higher capital investment, with the promise of substantial future profits?
Money matters but so does your experience to date and any skills you have. That’s not to say you shouldn’t consider turning a hobby or interest into a business start-up though, as your preferences and passions are important too. So, if you’ve been dreaming of starting a fitness franchise or getting a catering truck for food franchising, this could be your moment!
2) Optimise the experience and support of your franchisor
Franchising opportunities always come with a vital amount of guidance and information from the parent company. It’s one of the main advantages of launching a new business this way.
For example, cash flow is the biggest killer of business start-ups. Make sure you study all the financial projections you have access to and don’t hesitate to ask your parent company for lots of budget management advice.
Many offer you access to discounted services too, as well as stock and equipment at highly favourable prices. Make the most of all that help!
3) Recruit wisely and find mentors
Choosing staff for your franchise is a vitally important process. You need to find the right skillsets, but also people who will blend together as a team, sharing your vision for your new start-up.
You may have chosen a venture you will run solo, such as photography franchises, which depend on you getting out and about with your camera, or education franchises, which rely on your skills as a private tutor. In which case, find mentors to use as a sounding board, as being your own boss can be a lonely experience. Though of course, ultimately your parent company is going to be your biggest source of ongoing support.
4) Make customer service your top priority
When you run your own business, you have to wear lots of ‘hats’ and take on a wide range of responsibilities. It can be too easy to get bogged down in the day to day admin and lose sight of the most important thing: are your customers happy?
Customer service is never something you can neglect. You need to constantly find ways to keep your customers loyal, as well as maintaining a steady flow of fresh sales leads.
Better still, can you turn your customers into your advocates? For example, if you have chosen home service franchising, can you incentivise customers to recommend you to a friend in return for a discount?
5) Communicate constantly
This includes finding the best ways to market your franchise business. You can't leave this to chance. The most successful franchises for sale benefit from a well thought out marketing strategy, packed with well-orchestrated activities.
You will get a readymade website with some franchise agreements, and some parent companies feed referrals through to their network from their own marketing and sales campaigns. However, if you are ambitious and want a franchise that grows profitably, you need to put the leg work in yourself to promote your enterprise effectively. Use digital marketing methods, social media, printed materials and any other technique that's relevant to your market sector.
Keep in mind that good communications are not just about drumming up direct sales though. Invest time checking in with your franchisor regularly. The best working partnerships are based on an open flow of information.
Also, your staff need to be kept well informed to stay motivated and engaged. Reminders about your vision and their role in achieving it need to run alongside lots of positive affirmation and recognition. It’s amazing how hard people work when the boss says ‘thank you' regularly!
Your success is in your hands
“Genius is one per cent inspiration and 99 per cent perspiration.” - Thomas Edison.
This quote is true of being successful in a franchise business too, as it always hinges on being willing to put the hours in and work hard to manage all your priorities. At least when you choose a franchising opportunity, you have the perfect support team to cheer you on to success!