There are a couple of ways to venture into business: start a new business from scratch, acquire an existing one, or buy a franchise.
Each of these methods has its pros and cons, but franchising offers unique benefits. You get to buy into an established brand and the franchisor will offer you technical, sales, and marketing support.
However, this doesn’t mean franchise management is a walk in the park. You still need to embrace sound management practices; otherwise, your store will be among the many small businesses that fail.
In this article, we are fleshing out how to run and manage your franchise the right way.
Buy the Right Franchise
Running a wildly successful franchise doesn’t start when you have opened up your doors. It starts long before you even purchase the franchise. It starts when you’re exploring your franchise options.
A common mistake entrepreneurs who are new to franchising make is buying a franchise just because it’s a global brand with billions of dollars in revenue every year. We are talking about brands like MacDonald’s, Starbucks, and Marriott International.
Sure, buying a franchise from any of these brands is almost always a good decision, but it might not be the right one for you.
Before buying a franchise, give specific consideration to your location and interests.
Do you love animals? Then, a pet franchise may be right for you. Since 2020, pet adoption has significantly increased, and many of these animals need proper training. You can experience the joy of working with these furry creatures and still have the ability to keep your day job.
If you want to buy a franchise in the fast-food niche, look at the competition. It is not a savvy move to buy a fast-food franchise when there is already a high saturation of similar franchises and stores. The restaurant industry has already been struggling through recovery recently and going into 2023.
Ensure there is a strong demand for the product or service you will be selling in your location; otherwise, your dream of running a very profitable franchise will be a wild goose chase. Even the best franchise management won't save you if the market isn't responding to the franchise you invested in.
Draw a Business Plan
Yes, franchising does give you a leg up, but this doesn’t mean you should start the franchise without a business plan.
You still need to have a detailed document detailing your short-term and long-term goals. A proper business will flesh out capital requirements, which means you’ll have a pretty good idea of how much money you’ll spend on buying the franchise, setting up the store, and keeping the operations going until it’s turning a sustainable profit.
However, because most franchisors offer sales and franchise marketing support, it’s essential to ensure your own strategy blends well with your franchisor’s strategy. If the franchise is big on social media marketing, for instance, you’ve got to go social too.
Drawing a business plan can be a complex task. If you have no experience creating this document, hire a small business consultant who has vast experience writing franchise business plans.
Offer Exceptional Customer Service
Get this future franchisees:
A recent study found that 89 percent of customers have switched to a competing brand following a poor customer or user experience.
In other words, it’s either you provide great customer service or no one will be walking into your store, regardless of how strong the franchisor’s brand is.
Really, all franchisees have got to nail down customer service to a T. Every customer who comes to your shop should leave with two things: the product and a smile. If the franchise is service-based, they should leave with satisfaction and a smile.
The question is: how do you get customer service right?
Nearly 68 percent of consumers consider a polite sales and customer service representative key to their satisfaction. As such, hire customer-facing personnel who’ve got great interpersonal skills and train them on how to do the job right. These are the people who keep your customers coming back.
Your store’s design will be a replica of your franchisor’s store design and branding, but don’t leave it there.
If you visit two McDonald’s franchises today, your in-store experience will certainly not be the same. This is because there are variables that go into the general outlook and feel of a store beyond the layout of the space. Maybe one store had great air-conditioning while the other felt hot and uncomfortable.
Ensure your shop has the right feel, all the time. If you are a fitness franchise, you want the store to evoke a feeling of wellness and freshness. Cramped and out of date stores will turn away customers.
Utilize Your Franchisor’s Support Service
Franchisors gain a lot (in terms of licensing and annual royalty fees) from their franchises, but they also stand to lose a lot. One franchise’s mistake can hurt the entire brand.
This is why most franchisors offer various support services to their franchisees. While your franchisor wants to protect their brand, they also want you to succeed.
And to succeed, one of the things you should do is to utilize these support services. Don’t hesitate to call in and request help when you run into a technical problem.
Solving the issues on your own might seem the sensible thing to do considering the amount of time it will take the franchisor to send specialists over, but it can be worth the wait. Hurrying to solve problems you’ve got no knowledge of can lower franchisee product or service quality if you don’t do it right.
Alternatively, you can tap a third-party company that offers franchise management solutions. These companies are well-versed with challenges franchises go through and are well-placed to offer valuable support.
Franchise Management Simplified
Franchising is an ideal way to start and run a business. But for it to thrive and become wildly successful, you have to run it properly. With this guide on franchise management, you now have some of the most practical tips and strategies. Put these franchise management tips to good use.
If you want to buy a franchise in the fast-food niche, look at the competition. It is not a savvy move to buy a fast-food franchise when there is already a high saturation of similar franchises and stores. The restaurant industry has already been struggling through recovery recently and going into 2023.
Ensure there is a strong demand for the product or service you will be selling in your location; otherwise, your dream of running a very profitable franchise will be a wild goose chase. Even the best franchise management won't save you if the market isn't responding to the franchise you invested in.
Draw a Business Plan
Yes, franchising does give you a leg up, but this doesn’t mean you should start the franchise without a business plan.
You still need to have a detailed document detailing your short-term and long-term goals. A proper business will flesh out capital requirements, which means you’ll have a pretty good idea of how much money you’ll spend on buying the franchise, setting up the store, and keeping the operations going until it’s turning a sustainable profit.
However, because most franchisors offer sales and franchise marketing support, it’s essential to ensure your own strategy blends well with your franchisor’s strategy. If the franchise is big on social media marketing, for instance, you’ve got to go social too.
Drawing a business plan can be a complex task. If you have no experience creating this document, hire a small business consultant who has vast experience writing franchise business plans.
Offer Exceptional Customer Service
Get this future franchisees:
A recent study found that 89 percent of customers have switched to a competing brand following a poor customer or user experience.
In other words, it’s either you provide great customer service or no one will be walking into your store, regardless of how strong the franchisor’s brand is.
Really, all franchisees have got to nail down customer service to a T. Every customer who comes to your shop should leave with two things: the product and a smile. If the franchise is service-based, they should leave with satisfaction and a smile.
The question is: how do you get customer service right?
Nearly 68 percent of consumers consider a polite sales and customer service representative key to their satisfaction. As such, hire customer-facing personnel who’ve got great interpersonal skills and train them on how to do the job right. These are the people who keep your customers coming back.
Your store’s design will be a replica of your franchisor’s store design and branding, but don’t leave it there.
If you visit two McDonald’s franchises today, your in-store experience will certainly not be the same. This is because there are variables that go into the general outlook and feel of a store beyond the layout of the space. Maybe one store had great air-conditioning while the other felt hot and uncomfortable.
Ensure your shop has the right feel, all the time. If you are a fitness franchise, you want the store to evoke a feeling of wellness and freshness. Cramped and out of date stores will turn away customers.
Utilize Your Franchisor’s Support Service
Franchisors gain a lot (in terms of licensing and annual royalty fees) from their franchises, but they also stand to lose a lot. One franchise’s mistake can hurt the entire brand.
This is why most franchisors offer various support services to their franchisees. While your franchisor wants to protect their brand, they also want you to succeed.
And to succeed, one of the things you should do is to utilize these support services. Don’t hesitate to call in and request help when you run into a technical problem.
Solving the issues on your own might seem the sensible thing to do considering the amount of time it will take the franchisor to send specialists over, but it can be worth the wait. Hurrying to solve problems you’ve got no knowledge of can lower franchisee product or service quality if you don’t do it right.
Alternatively, you can tap a third-party company that offers franchise management solutions. These companies are well-versed with challenges franchises go through and are well-placed to offer valuable support.
Franchise Management Simplified
Franchising is an ideal way to start and run a business. But for it to thrive and become wildly successful, you have to run it properly. With this guide on franchise management, you now have some of the most practical tips and strategies. Put these franchise management tips to good use.
