10 Quick Franchise Tips You Should Know
Insights Into Owning A Franchise Business
Thinking about investing in a franchise opportunity? Here are some franchise tips you should take into account when owning a franchise. Owning a franchise is supposed to be about as “turn key” as one can get with a business model. However, most people think they can pick the first franchise they come across, and make a huge success of it. While, at the heart of it all, the franchise model is designed to be successful, no matter who is in charge, there are a few things that many people are not told about franchise opportunities.
We have compiled a list of the ten things you should know about owning a franchise.
1. Make Sure The Franchise Fits your Life
When choosing a franchise to own, it is best to pick one that aligns with your current lifestyle, as well as your goals. Some franchises require a lot of hours. Others are rather passive, and can generate revenue without the franchisee being on the premises. There are franchises that require a lot of startup capital, and there are other franchises that can be run from home for a very small initial investment. Additionally, owning a franchise does not limit the type of business you can own. There are franchises in every field, from the classic restaurant chains on up to senior care, fitness, and even luxury resorts. When browsing franchises, make sure that you pick one that not only lines up with your budget, but also your interests. Remember, this is our business, and it should interest you. It should not become “yet another obligation,” because that is what you broke away from the grind of working for someone else in the first place.
2. Learn The Game
Buying a franchise is much like buying a new car, a gadget, or a new game. It is designed to foster success and improve your life, but only if you understand how it works. There are many franchise owners who coast along by doing the bare minimum, and then there are the true successes. Perhaps one of the best franchise tips we can give you is to soak up everything the franchisor tries to teach you. Does that mean you have to take the franchise philosophy and apply it to every aspect of your life? Absolutely not. Listen carefully during the training period, and pop in to talk with existing franchise to find out how they run things. If you learn to read between the lines, there is enough information to become a true success at owning a franchise. In every franchise organization, there are people who do very well with the franchise business they own, and then there are the ones who seem to effortlessly maximize their profits, end up owning multiple operations, and retire early and comfortably without feeling the need to micromanage every establishment. These are the people who understand the game, without compromising their own lives.
3. Hone Those Business Skills
Owning a franchise is about making the most of the system you purchase. However, most franchisors expect people to have a solid foundation in certain business skills. Before purchasing a franchise, take a course in business accounting or basic business principles. Read up on how to make sense of a P&L sheet, how to make forecast and projections, or simply familiarize yourself with QuickBooks and how to draw up a basic budget. The reason franchises fail is because the business owners think they can just let things go and the business will take care of itself. Having basic business skills can mean the difference between being a rock star and having to go back to the drawing board.
4. Be Part Of The Team
There are some franchise owners who like to go against the grain. They hem and haw about every new policy, and fight new roll-outs and changes. There is absolutely no harm is questioning why things are done, but ultimately, owning a franchise comes down to making money. Your investment is in good hands, and the powers that be usually run an analysis, and even try out new things in select locations, before implementing them across every single franchise. If McDonald’s rolls out a durian fruit-flavored shake, and it’s a flop, they quickly remedy the situation. However, the franchisor knows that their money comes from their various establishments, so they are not interested in making sweeping changes, unless it is going to further maximize profits for everyone, or make things run more efficiently. If you have questions about changes, meet with your franchise representative. They will explain the reasoning behind the roll-out, and back it up with hard numbers.
5. The Power Is Yours
Every franchise will come with the training and tools to turn any outlet into a success story, but the phrase “turn key” only goes so far. If franchise opportunities were completely automatic, they would not sell them to individuals. Franchisors would just invest in a location, and let the outlet run on its own. But owning a franchise requires a more hands-on approach to ownership. You need to ensure that operations run smoothly, that customers are happy, and that revenue is exceeding costs. Taking control of your franchise is the best way to ensure success.
6. The Learning Never Stops
Owning a franchise means taking a very proactive approach to entrepreneurship. Meet with other franchisees. Go to trade conventions. Spend some time each week to research what competitors are doing to keep ahead. Also, do not be afraid to make suggestions to your franchise representative. Who knows? Something you may learn could make things easier for the franchisor as a whole, and those suggestions do not go unrewarded. You may also learn some tricks to generate more revenue that are overlooked by most franchisees.
7. Not Everyone Is Born For Sales
Not all franchises rely on customers walking into an establishment. Many rely on direct sales. However, not every franchise owner is a natural salesperson. So what do you do? Simply put, fire yourself fro the sales position. If an employee is not performing well, you let them go, and you should treat yourself no differently. You wouldn’t keep an accountant who let your business leak money, would you? Once again, talk with your franchise representative. Most franchises have sales specialists who will promote your franchise – either in general, or in your immediate area. These are people who understand sales inside and out, and can drum up leads or close deal for your franchise operation.
8. Marketing Is A Continuous Process
Most franchisors will provide marketing materials in order to generate interest in your location, and the franchise brand as a whole. Additionally, there are things you can do as a franchise owner, that can further promote your establishment. Create fliers. Leverage social media to offer special promotions at your specific franchise business. Create mailers. Pound the pavement, if necessary. Marketing never ends, and it is an integral part of any franchise’s success.
9. Customer Satisfaction Is Key
It may sound cliched, but there is a reason cliches exist. If you ensure that your customers are happy, then you are ensuring repeat business, and that is a keystone for franchise success. This does not mean you have to lose money in the process, or give every customer everything they want. However, you can ensure they have a satisfying experience doing business at your particular franchise. That will not only set yourself apart from the competition, but the volume of sales will be recognized further up the chain at the franchisor’s headquarters.
10. Become A Part Of Your Community
Any physical establishment impacts a community, and a franchise is no different. Talk with your franchise representative. If there is a community event, ask if your franchise can officially represent the brand. Take part in fundraisers. Offer incentives to employees to volunteer with community organizations. As your franchise becomes more visible, and you become known for giving back to the community, the community will, in turn, be more inclined to business with you. In a sense, getting involved with the community is a positive form of marketing.
Launch A Finance Business
If you are looking to launch your own business, and are still debating on the true advantages of a franchise, take a look at the Commercial Capital Training Group (CCTG). We provide all of the tools and benefits of franchise ownership – the training, the knowledge, the 24/7 support, one-on-one meetings with our representatives, and more – with the added advantages of owning your own business.
We will provide branding in your name, marketing tailored to your business goals, and the tools to make you stand out from the competition. At CCTG, we teach our graduates how to do business in the world of commercial finance. Our recession-proof business model allows for constant revenue with virtually unlimited earning potential, without having to deal with the one-size-fits-all approach of standard franchises.
If you have ever thought about launching your own business and achieving financial independence, yet are still weighing the pros and cons of a traditional franchise, contact the Commercial Capital Training Group.