Why are some franchises more successful than others? Part of it comes down to choosing an established company with a proven track record and a good business reputation. It is also important that the franchise is a member of the British Franchise Association (BFA) and runs its business in accordance with the best practices laid down by the BFA and other administrations. However, once you have chosen the right company, what do you need to do to make it a success?
1. Establish Good Working Relationships
Firstly you should establish from the outset a good working relationship with your franchisor. Your franchisor will be able to assist you when you want queries answered. A franchisor will have the experience and past knowledge of working with the franchise system and franchisees, so it is vital you listen to their advice.
2. Monitor Cash Flow
The next important thing to watch out for is your business cash flow. Keep looking back at your business plan and assess your initial financial forecasts and projections made. These forecasts are an excellent indicator of your financial situation and you should keep as close to the financial statements made as possible. Careful planning and monitoring of business cash flow in the early days of the business will ensure your long term success.
3. Recognise Your Strengths & Weaknesses
It is important that your recognise your own strengths and weaknesses and to use them to your advantage. If you lack certain skills that are required to operate the business successfully, for example, accountancy, you should employ someone else to take care of aspects of the business you are not 100% confident with.
Delegating responsibility can be one of the most difficult tasks to undertake in a new start up business, but it may be a vital task to delegate if you are struggling on your own skills and experience.
4. Market Your Franchise Business
You invested in this franchise business because you are passionate about the business model, its products or services? Right? Well then you are the best person to market your business. There is no more effective way to attract customers to a business than someone’s passionate interest or belief in the product or service it provides. Utilise this passion and interest to the advantage of your franchise and make it work for you.
5. Networking
Establishing effective networks with the franchisor and existing franchisees will be crucial to your long term success. Regular phone calls, meetings, coffee lunches and annual conventions with your franchise network will not only motivate you, but these events will give you the opportunity to discuss any problems or positives you have about the franchise opportunity. Building a strong support network is an excellent way of increasing the success of a business.
These five points are some of the main characteristics that you should focus on when you are setting up and growing your franchise business. But remember the reasons why you decided to invest in a franchisein the first place as this will motivate you when times get tough.
And most importantly, HAVE FUN! You can determine how successful you will be.