How to be a Successful Franchisee
A franchise can be a good option if you are thinking about starting your own business. Franchises are considerably less likely to fail than independent businesses because they benefit from name recognition and a proven business model. But if you are thinking about buying a franchise, remember that it is not foolproof. There are things you will have to do to be a successful franchisee.
The most important step to being successful in buying a franchise happens before you even purchase the franchise. This stage involves a great deal of self-assessment. First, you need to figure out if buying any franchise is right for you at all. Franchises are less risky than independent businesses, but they also require you to follow rules and run your business within certain parameters. You will be your own boss, but you also have to answer to the franchisor, and follow their rules. Furthermore, do some self-assessment to figure out what kind of franchise you want. You need to pick a franchise concept that you can believe in. If you cannot commit to the product or service your franchise offers, you will not be as successful.
Once you have bought the franchise, there is more work to be done. Stay organized, keep within the parameters of the franchisor, and communicate with them if there are any problems. Remember, if you become a franchisee, you may have to deal with things like hiring and training employees, buying supplies, and working long hours. If you are not committed to doing these things when you purchase your franchise, you are unlikely to be as successful.
Even if you pick a franchise you really believe in, follow all the rules, and work hard, there are still some things that can cause a franchise to fail that would be completely out of your control. Even if your franchise is successful, if your franchisor runs into trouble, you could be in trouble too. Franchisors can have financial difficulty for a variety of reasons.
If the franchisor is relatively new to franchising their company and doesn’t have a track record of franchised businesses, they might have a flawed franchise structure. To avoid this affecting you, as a franchisee, look for franchisors that have been franchising for a long time or at least make sure that they have done sufficient testing so that you can be sure that their model is sound.
Another thing that could cause problems for your franchisor is poor performance on the part of other franchisees. Even if you are working hard and are successful at your franchise, your fellow franchisees may not be so lucky, or may not be doing a good job, which can put the franchisor in financial difficulty. A franchisor should have a rigorous selection process to avoid acquiring franchisees who are not very competent. If it seems too easy to sign up for a franchise with a company, consider avoiding that company – their other franchisees could be a big problem for them and for you.
Filed under: About Franchising, Buying a franchise, Franchise Advice, Franchise Articles
Very well said! In my franchise guide, I’ve shared very useful steps on making the right franchise choice, evaluating the franchise opportunities, and current market performance of franchises among other important things vital to the knowledge of the potential franchisees before they make their decisions.