How Do I Know What Separates a Successful Franchise System From An Also-ran?
What separates a successful franchise business from an also-ran? You've had business success in a long time career but have decided to retire and start a new business venture. You researched multiples of franchises in a variety of franchise industries and made what you think is a smart choice for you and your family. You chose franchising as opposed to starting a new business primarily because your risk tolerance in mid-life is not as great as it may have been in your 20's or early 30's. The franchise you chose is a top franchise brand, considered one of the best franchises in its industry with more than 100 franchise units operating nationally. The grand opening of your franchise business is tomorrow. You've done your homework, staffed your business and are ready to go.
What are the ingredients for your successful new franchise business?Outside of a first class entrepreneur to manage and operate your business, in franchising, its all about the franchisor. Look for franchise opportunities with a proven system over time, consistently duplicated in all environments. The idea behind this is that if you do what they did, you too will be successful.
Franchises that offer plenty of support always turn out to be the best franchise systems. The relationship between the franchisor and the franchisee should be viewed as a partnership. In other words, the ongoing success of the franchisor is in direct correlation to the success of the majority of the franchisees in the system. Franchise support includes superior training and product, ongoing mentoring from other successful franchisees, assistance during tough times and guidance with staffing issues and operational management.
New customers must come from somewhere. Advertising is key and top franchises have robust advertising campaigns to help you get new customers into your franchise business.
New products and expanded services along with new ideas to better revenue streams on an ongoing basis will set your franchise apart from others. The best franchises keep an open mind, respond to change and are tireless innovators. Franchisors should have a track record of putting money into research and development, constantly testing new products and new ideas.
If you've done your homework, you chose a franchise with a solid reputation. You can't do enough due diligence to assure there are no surprises that may end up effecting your business. Always contact the Federal Trade Commission to see if there have been any complaints about the franchisor. The best franchises have a pattern of success over time which translates into successful franchisees.
A franchise system with a large franchise base is less risky than a new franchise system. That doesn't mean a new franchise won't be successful. In fact, new franchise systems, will often have a new concept, a new idea or product that will turn a stale franchise market upside down. If you're risk level is low, you may want to stay with an established franchise brand.
Buy a franchise that is friendly. The best franchises are friendly to their franchisees, their customers, suppliers and workers. You are going to be working with your franchisor every day for a very long time. So, find one you enjoy doing business with.
Lastly, as an entrepreneur, you need to be frugal. Always! Keep overhead low and productivity high. The best franchises keep costs down.
If you're looking for the right franchise, look to find the right ingredients to assist in your success and look to yourself to manage your franchise business efficiently.
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