Franchising is one of the most attractive options for those who intend to enter the business industry. Especially for starters and those budding entrepreneurs who are still about to learn the latest techniques in the industry, it’s a no-fail choice to start a franchise business. It’s a tried and tested mode of business ownership, presenting doors of opportunities for business-minded individuals without the need to reinvent an already-established business wheel.
When you franchise a business, you’re buying the right to use the name and business model of a famous company as your own. You’re essentially starting your branch, and this is now your business. In exchange for this, you have to pay the company their franchise fee and a royalty fee, with the latter being a specified percentage of your monthly sales.
In this article, you’ll have a list of tips for starting a franchise business so you can avoid falling into the pitfalls of a failed franchise startup. Read on to be enlightened.
- Choose Among The Popular Options
One of the reasons why many starting entrepreneurs opt for a franchise business is you’re already banking on a popular name. This makes it a tad easier to establish your existence as a business because the brand itself is already well-known.
But when there are many franchise businesses you can choose from, it’s also not surprising that you may be confused as to which one you should go for. You can start by narrowing down your choices based on the popular options in your local area, so you’d have a higher guarantee of success. Then, you can select based on your preferred niche.
To help you go through your options, here’s a list of the most popular types of business franchises you can choose from:
- Business service providers;
- Convenience stores or a vending machine business;
- Specialty retailers like hardware stores;
- Travel agents;
- Real estate businesses;
- Pet care businesses;
- Educational franchises;
- Entertainment franchises;
- Health and fitness establishments;
- Healthcare providers.
Apart from choosing based on what’s popular and what your preferences are, it’s an added advantage on your part if you select which aligns with your business goals both as an organization and as an individual leading your team. Some of the questions you may want to ask are:
- How can the chosen franchise business enable you to achieve your goals?
- What are your strengths and weaknesses as an entrepreneur?
- Hire The Best People And Treat Them Right
Even if you’re franchising an already well-known business, you can’t skimp on the quality of your staff. Franchise businesses can fail, especially when the operation aspect of it isn’t successful. This is where hiring the best people and treating them right is very important. Therefore, you must develop a quality recruitment process.
Remember that for any business, your staff would play a significant role in your success. This is your most significant resource to ensure that even in your absence, your business continues to run smoothly. With that in mind, these are some tips to come up with the best staff for your franchise business:
- Write better job descriptions so that as you hire your staff for your franchise business, there wouldn’t be any mismatch. You should be certain that the right staff are placed in their appropriate positions and that each one is aware of the responsibilities they have to play.
- Treat employees as you would your customers so they stay for long in your business and your employee turnover rate will be low.
- Implement an employee referral program to cut short the hiring process and to ensure a better and more positive network of connections throughout your franchise business.
- Study The Franchise Contract And Manual Thoroughly
As you discuss your intent to franchise with the mother company, you’ll also be presented with a franchise contract and operations manual, among many other documents. When these are given to you to review, be sure you go through them thoroughly. Don’t rush this process as you want to be certain that before you undertake and sign the agreement, you concede to all the terms of the contract. Usually, franchise agreements can last for three to five years before you have to renew, so you need to be certain you can last through the contract for that timeframe, at a minimum.
The operations manual, on the other hand, serves as your guide on what your operations, systems, and processes should be. It’ll also contain all of the information you need to develop, open, and operate the franchise business. If there’s anything you’re uncertain of, lay your cards on the table right away so those gray areas can be settled before you open your branch.
- Go Through Franchise Monitoring And Assistance
Another advantage of opting for a franchise business is you’ll receive franchise monitoring and assistance from the parent company. Use those resources to your advantage. Being receptive to the training, monitoring, and assistance provided by the franchise company can ensure fewer mistakes are made. Remember that in any kind of business, some mistakes can be deadly with the result of even hurting your financial stability.
Whenever updated training is made available by the franchise company, give your team the opportunity to learn more as well. Just like any business, your goal for your franchise should be to grow and earn profits, and this can only be achieved with proper training and mentorship.
The tips above aren’t exhaustive as once you get full force in your franchising process, you’ll come across many more insightful guides to ensure success for your business. Remember that there isn’t a one-size-fits-all approach to a franchise business as there may also be specific needs, depending on the kind of franchise you’re going for.
Don’t rush the process and be sure you’re going through your franchise startup in the best way possible. This creates a solid foundation for a business that’ll eventually be profitable and will survive even the biggest waves in the industry. Consider the ideas mentioned here as you plan and prepare.