Being the new owner of a franchised business requires a different working mentality from the common employee. You may be wondering if opening a franchise is a good idea or if you would be better off starting your own business from scratch or, perhaps, even staying at your 9 to 5 job.
A successful franchisee requires select, key traits that distinguish them from the rest. Your personal work ethic can either make or break the success of your new business. Starting a franchised business can be challenging, but with proper preparation, it can lead to significant personal and financial rewards for the franchisee.
What is a Franchisee?
A franchisee is someone who pays for a license to start a business or sell a particular product. They pay a franchise fee and ongoing royalty fees to secure access to trademarks and proprietary processes.
Investing in a franchise opportunity is a popular avenue for prospective business owners. As a franchisee, they get to benefit from the proven business structure and recognizable brand name of the franchisor. Buying into a franchise also offers a number of other benefits that don’t come with an independent business start-up. These include training, marketing, financing resources, real estate assistance, hiring assistance, and, typically, an earlier revenue stream.
The first step is to do your research. Learn everything you can about the franchisor and business model before signing a franchise agreement, and take the time to find a franchise system that aligns with your goals and lifestyle.
Many franchisees experience higher success rates when compared to small business start-ups. However, just because you are buying into a franchise does not mean that you will not have to put in a lot of work to achieve your goals. Read more about the process of purchasing a franchise and what it entails.
The Traits of a Successful Franchisee
Franchisors want to find business owners that will thrive with their business model. They look for individuals with a strong sales aptitude that fit in with their culture.
While many important skills of business ownership can be taught, the following are eight key personality traits that most highly successful franchise owners possess.
While the franchisor is there to guide you, you will ultimately be responsible for your own business. That includes hiring and managing employees, making business decisions, and promoting your business locally. A successful franchisee must be willing to step up to the plate and take on these challenges.
2. A Hunger for Knowledge
Always seek out new knowledge. Most successful franchise owners, as well as entrepreneurs, have a passion for continued learning and are always working on improving themselves. As a franchisee, you are an integral part of the franchise system. The knowledge and passion you bring to the table will help the brand flourish, benefiting not only your business but your community and the franchise system as a whole.
Invest in a franchise that you can envision yourself running well into the future. Keep in mind, however, that as a business owner this may look very different than what you are expecting. You are looking for a business model and a company that you are passionate about—that doesn’t necessarily have to mean you are passionate or even knowledgeable about the products or services the brand provides (many people who open up hair salon franchises have no experience or interest in styling and cutting hair).
As the franchisee, your primary role and responsibility is the business—the employees, the customers, and ensuring that the day-to-day activities are running smoothly (you could also hire a general manager to hire the day-to-day business operations on your behalf—how involved you want to be in your business is entirely up to you).
In every business opportunity, there are positive relationships to be made with customers and other franchisees. If you can get behind the business model of the franchise system, don’t limit yourself to certain industries. You may find an amazing and supportive culture in a franchise system you never thought you’d consider.
Discipline and hard work are crucial to running a franchise. Getting your business off the ground takes a lot of time and planning, and it requires many decisions to be made. In the early stages, this may look like long hours and busy weekends. While it’s great to set big goals for your business, make sure you also take the time to celebrate small wins and acknowledge all the progress you’re making.
It’s a common misconception that a franchise is a turn-key business, but the franchising world is not a corporate structure. It is a marriage between small business ownership and the expertise of a well-established brand.
When starting or operating a franchise, things may not always go as planned. As such, you may need to adapt your plans and strategies as you go. You’ll need to ensure you are adhering to the franchisor’s rules and regulations. Follow the systems the franchisor has put in place for you to succeed, but leave yourself some wiggle room.
It is best to have an openness to new experiences balanced with a willingness to stick with the systems set forth by the franchisor.
6. Strong Communication Skills
It’s important to have a good working relationship with the franchisor and good communication skills, both during the initial process and after. You will need to be able to properly communicate with the franchisor, your employees, and your customers.
Another key factor to your success will be your ability to reach out to the community to promote your business. Having strong communication and customer service skills will help with the efficient operation of your business and ensure any issues that arise are properly handled.
Proper communication with the franchisor is also important prior to signing the franchise agreement. You’ll want to ensure that you see eye to eye with the franchisor on all aspects of the agreement and address any questions or concerns.
From creating a business plan to implementing marketing strategies, there will be a lot of information and tasks to keep track of. Without organization, you will become overwhelmed very quickly. Make actionable plans and goals that you can stick to on a schedule, and note in advance what you might need to outsource or seek assistance with. Take advantage of the resources the franchisor has made available to you.
As with any type of business ownership, the decision to buy a franchise houses certain risks. A successful franchisee is fully aware of this but also realizes there is a greater reward potential available.
At the end of the day, your achievements will come down to your decisions and work ethic. You must be able and willing to strategically implement the systems and strategies the franchisor has laid out for you. While it’s up to you to do the work required to achieve a successful business, the franchisor is there to offer resources, guidance, and support every step of the way.
Contact us today to learn more about franchise ownership and to get started on your journey!