Franchise Focus Business News…

After you have invested in a franchise or business opportunity and you have received the necessary training, tools, resources and so forth to get your business up and running, there can be some problems that will occur despite the careful initiation program started from the outset by both you and the franchisor.

These problems will occur in any type of business, whether it is a franchise or independently owned business.

However, remember that in a franchise business you will always have the back-up support from the franchisor, head office and franchisees, the Franchise Association and other leading franchise organizations set up to help franchisees. This is an important point to remember. Always seek advice from your franchisor before making any decisions about the business when you are unsure of a solution and possible outcome.

View the following list of problems you may encounter within the first year of your franchise operation:

 1. Not Enough Capital

This has to be the biggest problem franchisees encounter within their first year in operation. Ascertaining how much capital you will need at the beginning of the franchise start-up can be quite difficult to determine. But if you gain the advice of an expert financial consultant prior to the franchise investment, he/she will be able to calculate how much everything will cost to set up and operate your business in its first year.

It is vital you understand and are clear about your financial resources from the start so that your financial advisor can make the best cost-decisions for you and factor in any future financial eventualities so that you are covered for the business year…

2. Business Sales

I know that I am not a big fan of cold calling, I prefer emails! But if you are intending on operating your own business, then you will have to either cold call customers for sales purposes or partake in some sort of sales during the business operation. You must be able to retain customers and attract new customers to your business and the best way to achieve this is, of course, implementing effective sales techniques.

A lot of franchisees can be anxious or nervous about selling products and services in a business if they have never encountered sales before, but if the business sales aspect of the business makes you nervous, then perhaps you really shouldn’t be in business in the first place. If you are determined to be in business consider employing a sales rep to help you achieve your necessary sales targets for the business to be profitable in its first year.

3. Staff/Employees

Another problem many first time franchisees encounter in their first year in operation is hiring, firing and the retaining of staff members. Often it can be difficult to hold onto good employees but if you provide employees with work incentives, benefits and other types of employee packages, then you will have a much lower rate of employee turnover.

Implementing employee benefit packages prior to your business launch will ensure you have the necessary procedures in place when you come to the stage of hiring and retaining key employees.

4. Time Management

Perhaps one of the biggest problems franchisees face in their first year of business, is the ability to time manage, prioritise and organise the business with familial and social obligations. But if you prioritise your skills in what you can do best for the business — for example, managing the accounts, hiring employees or ordering supplies — then you can employ other people to join your team to take care of the tasks you are unable to cope with. Knowing how and when to delegate power is one of the biggest challenges a new franchisee will experience.

Finally, remember that in business there will always be problems and as a Franchisee operating your own business you must account for these eventualities and handle them in a professional and effective manner. One thing to remember is — if a problem becomes too large to handle — always seek the advice of your franchisor, who has years of business and franchisee experience.