Owning your own franchise business offers you the ability to work at your own pace and on your own terms while taking advantage of resources provided by the franchise company. But being part of a franchise also comes with its fair share of challenges and responsibilities, and those who don’t follow the rules tend to have less successful businesses. Make sure you get off on the right foot by following these eight rules franchisees must follow to be successful.
Rule#1. Get Educated
Before signing on the dotted line, take a moment to make sure your business interests align with the franchisor’s strengths. Some questions you can ask before making this significant life decision include: Is it easy for me to sell products that are similar to the ones offered by my franchisor? Does my community support and appreciate what I will offer through this business? Can I afford the initial investment as well as potential ongoing fees, such as royalties and annual marketing fees? How much control do I have over the operation of my business? What is the franchisor’s history of success in providing opportunities for minority communities or other areas that may not have been traditionally served by them?
Rule#2. Get Prepared
Just like a new college student should start packing their dorm room with items they may need, so too should you start thinking about what items you’ll need for your new business. When picking out the necessary supplies and equipment needed for your business, think about the following things
-How much is this going to cost me?
-Do I have enough time?
-Can I afford this in the future?
-Will I be able to maintain it without any help? -Are there alternatives that would work just as well but are cheaper?
-If I can’t find an alternative, am I willing to spend more money upfront in order to save money in the long run?
-If I get stuck on an answer, am I willing to hire someone else who can make a decision for me (such as a lawyer or accountant)?
These questions will help you figure out what resources you’ll need before purchasing anything!
Rule#3. Attend your meetings
It may sound odd for a CEO to attend team member meetings, but it is crucial for several reasons. The first and most obvious reason is that the CEO leads this meeting. Other employees need your inspiration and guidance and will respond positively to their job performance when they know they have an important leader who is vested in their growth as an individual and as team members. Attending team member meetings also ensures you are in touch with their day-to-day needs so you can allocate company resources more efficiently. Secondly, you want to ensure consistency of standards across all departments. As a result of attending these meetings, your department heads and managers should feel empowered by having the ability to make decisions on how best to allocate company resources and manage their respective teams. In addition, being involved in these meetings gives them access to intelligence about what’s happening at headquarters that can help them better understand what strategies may work best in their region or location.
Rule#4. Have a Plan B
You always have another option available in case your first choice doesn’t work out. In the context of franchising, this means knowing about other brands that might suit your needs, as well as researching and preparing for all of the downsides (e.g., risk factors) of becoming a franchisee. Do you also need to ask yourself what could go wrong with this investment? What would I do if things don’t work out? Will I lose my home? Can I afford it? Is there enough support from the company? Do they provide adequate training? Does their product make me happy? Will I get bored after a while? It’s not uncommon for people to walk away from franchises due to these questions – just make sure you’ve considered them before jumping into anything.
Rule#5. Invest in yourself
Working for yourself has its benefits – like the flexibility of being your own boss. But before you take that leap, it’s important to weigh the potential risk of working for a company and compare it with the potential rewards. The main difference between the two is the lack of insurance benefits when running your own business. If you are looking to invest in equipment or hire employees, there are even more considerations to make before taking on this type of venture. It’s important to know what could happen if your business doesn’t work out as planned. Can you afford to live without an income? What about paying off loans? And finally, would investing in another business opportunity be more worthwhile than starting from scratch?
Rule#6. Build relationships with customers, staff, and suppliers
When it comes to the relationships you have with customers, staff, and suppliers, don’t take them for granted. It takes more than just providing a product or service; you need to make sure the people who work with you feel appreciated, respected, and understood. Neglecting these individuals can damage your reputation and lead to other troubles later on. Building good relationships is important in order to ensure success. You can only go so far in business if no one wants to work with you or buy from you.
Rule#7. Be ready to work hard
When you decide to invest in a franchise, the level of commitment is high. You can’t stop after some hard work and expect things to take care of you. If you want your investment to yield success, then you’re going to have to put in the time and effort necessary for it to happen. If you’re looking for an easy way out, don’t look to franchising as an option. However, if you’re ready to work hard and really dedicate yourself to growing your business into something great, then franchising may be right for you. The key is that you are able to accept that hard work isn’t all there is to be successful in this industry. Success comes from doing what it takes to get the job done.
Rule#8. Invest in the business
By investing in your business, you can expect a higher return than you would with other investments. Plus, you’ll likely have greater access to the franchisor’s resources. It’s worth it! Investing time and money into your business will help grow its value over time. As soon as you start making money, invest some of that profit back into the company for growth and expansion. Successful franchises reinvest at least 10% of their profits into their businesses. In turn, they increase their ability to scale up their operations and offer more services to customers. Whether it’s through marketing efforts or buying new equipment, reinvesting is crucial to any business’s success.