Successful franchising continues to make headlines in the business news as an effective growth strategy for entrepreneurs and established brands alike. The power of franchising lies in its ability to combine the entrepreneurial drive of individual franchisees with the established systems and support of a well-known brand.
Do you have what it takes to have a successful franchising business? If you decide to start, how can you be sure that you’ll have success like “Bill Gates” rather than an experience that brings to mind “Barney Fife”?
Everyone who has seriously considered buying a franchise business has at some point in time wondered if they “have what it takes” to be successful. You find yourself saying, “Sure, all those other franchise owners seem to be doing fine … but will I?”
There are two things that you can do to help answer these questions for yourself.
• First, evaluate yourself on the success factors common with all franchise systems.
• Second, conduct a careful investigation of whatever franchise you’re interested in to determine the unique characteristics of successful franchisees in that particular system.
How to make it possible? Know the 11 ways.
How successful is franchising?
Franchising has emerged as a highly favored business strategy, leveraging the power of shared resources, ideas, and expertise across multiple parties.
The success of a franchise model depends on crucial factors such as widespread brand recognition, established processes and systems, continuous franchisor support, and a history of profitability.
While there is no one-size-fits-all formula, statistics and studies provide valuable insights into franchise business success rates. The success of a franchise hinges on the execution of the franchisor’s business plan, adherence to standards, and ability to adapt to market changes.
Great franchises are able to pivot their products to accommodate customer preferences and changing market demands. McDonald’s recent focus on coffee sales is a prime example of how franchises can stay ahead of the competition through strategic adaptation.
The IFA‘s study shows promising growth and potential in the franchise industry for 2023, foreseeing a rise in job opportunities, economic output, and steady contributions to the GDP. Service-based industries and quick-service restaurants, in particular, are expected to prosper in the near future.
Here are some examples of successful franchise brands in the United States:
- McDonald’s: It is one of the most recognizable and successful franchises, generating over $112 billion in sales worldwide in 2021.
- 7-Eleven: 7-Eleven: It has a large number of franchise locations across the United States.
- KFC: Kentucky Fried Chicken, commonly known as KFC, is a popular fast-food chain specializing in fried chicken.
- Burger King
- Subway: It has the highest number of franchise establishments, with over 21,000 locations.
- RE/MAX: A real estate company that operates on a franchise model.
- Marriott, Hilton, and Hyatt: These international hotel chains generate substantial revenue through their franchise operations.
Have a Successful Franchising in 11 Ways
It’s normal to be nervous and doubtful at some point in the process of deciding to get a franchise. For most people, this is a decision with the potential to have more impact on their life than virtually any other.
How can you be sure that you’ll measure up and achieve the success that is your motivation for getting involved? The following ways to reach success in owning a franchise will help you determine where you stand in relation to this question.
1. Choose the industry that you are passionate about
You can endure any task if you love what you’re doing. For you, there’s no difficult work to do if you’re passionate about your job. A Successful franchise owner is invariably goal-oriented and passionate.
You should choose a franchise business model that matches the things that you love to do and is familiar with. For example, do you have an active lifestyle and a workout routine? Then you might want to put up a fitness club instead of something else.
Successful franchisees have a clear idea of what they want to accomplish and how they plan to do it. Their goals are written down and they refer to them regularly.
Does this sound like you? Can you form this habit and make it part of your everyday activities?
2. Plan your finances to achieve a successful franchising
Avoid going beyond your budget. Plan your finances ahead of time. Your one-step expense should have an equivalent of one step accomplishment. Sit and analyze first which business type you want to invest in.
If you plan your finances before doing anything else, you can save more of your money. Remember those finances are not just at the beginning of purchasing a franchise. You should be ready of sustaining your business financially during your first 6 to 12 months in the business.
How to fund your business during the startup phase? Here are the three options:
- You can apply for a startup loan
- through investors
- or self-funding if you have earned enough money to purchase a franchise
3. Follow the system procedures and processes
Following the company, policies are a non-negotiable franchise agreement between the franchisor and the franchisee. To achieve the success of being a franchisee, you have to strictly submit to the company’s rules and regulations in running the business.
As you continue to support the procedures and processes, you will be able to maintain the brand’s quality. Aside from that, the franchisor will recognize your good reputation. Of course, it is a sign of a healthy running franchise business. It will give you confidence that the franchisor will be willing to renew your contract when the term has expired.
Never put your investment at high risk by breaching the company’s terms and conditions. Your reputation is the key to developing a good relationship with the franchisor.
4. Trust Yourself
Before trusting anyone else, you should trust yourself first. It is you who will be going to invest. It is you who will manage the business. And it will be up to you if you want to make it successful.
YOU are the main component of your success. In other words, trust your abilities and capabilities more than how you trust others in convincing you to get into the business. Gaining full trust in yourself means you are confident that you can make your goal happen.
Others may put you down along the way but your self-trust will lift you up and continue soaring high to build a successful franchising business. Never start a career without trusting yourself. It will just lead to failures and disappointments.
5. Hire the best team and appreciate them
Mastery cannot be learned overnight. If you are a first-time franchisee, it would be best to hire the best people and work with them as a great team. Be a leader instead of being a boss. Appreciate the work of everybody.
Leadership is not given it’s taken.
- Are you the type of person who normally takes charge in work settings?
- Do you feel comfortable accepting the responsibility that comes with making decisions and dealing with the results of those decisions?
- And do others seem to follow your lead or are you usually part of the crowd?
Engaging with the best team will help your business grow. And being an appreciative leader will encourage your people to trust your leadership and stay loyal.
6. Train your employees
Employees that are well-trained are more likely to stay longer. Keep your employees by spending time to touch base bute more important to success in a franchise relationship than integrity. This applies to your relationships with your employees, too. You need to be the type of person whose personal values and morals are beyond question.
Is this an area of strength for you?
If you regularly train your employees, the work will run smoothly and easily. Pieces of training let your employees feel that you value the operations in the business. That will move them to do their job with seriousness without pressure.
7. Consider your customer’s point of view
Customers are always right. Though at times this quote is not realistic, you must consider your customer’s point of view to keep them. Most customers say how they feel. Some are vocal about the great service they got but others tend to complain about the poor experience they had.
Either of the two scenarios will happen, be ready to listen to them attentively. Appreciate their loyalty and address their concerns accordingly. Making them feel valued will secure the business’s reputation.
Customers’ points of view can also be used to create an up-to-date marketing strategy that you can suggest to your franchisor. Customers may always want new. Besides, being in line with the trend will not outdate the brand product.
8. Take time off
As a business owner, finding time for yourself and your family is essential. Make sure you regularly schedule vacations to ensure that you are refreshed and energized when it comes to managing your business!
It is needed to devote your time to the business but nothing’s more important than to spend quality time with your loved ones at least once in a while.
Incorporating best practices involves prioritizing quality time with your family on special occasions, such as Thanksgiving Day or watching the Super Bowl together. Engaging in activities that your family genuinely enjoys is crucial. How does taking time off contribute to the success of franchising endeavors?
Simply, you can relax and refresh yourself from stress and pressure. You can boost happy hormones that will result in a feeling of well-being. These are helpful emotions to do more in the business. Plus, it’s a reminder to your family that they are still your top priority.
9. Be more involved with your community
To attract more of your target market, you have to find a way to reach them. As the Covid19 pandemic hit the economic status a lot, you can use the opportunity to get involved with your community. Are there food banks near your location?
There are over 60, 000 food pantries across the US. Can you support a little with your product or service? You might be able to set up a booth for community gatherings to offer help.
Community events offer an additional avenue to deepen your engagement with the local neighborhood. Consider organizing special tours for a small group of children at your business. These marketing initiatives will not only enhance your reputation within the community but also generate increased customer interest due to your proactive involvement in local events.
10. Be inspired and motivated
Nothing is impossible for an inspired person. This feeling empowers you to continue the business whatever it takes. If you are inspired, you can make successful franchise ownership achievable.
Inspiration is one great factor to penetrate good vibes. An environment that promotes enthusiasm and inspiration brings a happy workplace ambiance to employees and is a great place to relax for customers.
Being inspired attracts positivity as a whole. Never let anyone take it away from you. One way of maintaining this mood is to engage more in the business.
Do the things that you haven’t yet done before. You can go and make connections, do some troubleshooting, or solve business-related problems. You will find more reasons to be inspired as you see positive results.
11. Be patient to see results.
Do not rush everything. Take the process to success slowly but surely. Having a successful franchising will not happen after the grand opening of your business. It takes time, effort, and more finances before you can say that your franchise system is growing healthy and successfully.
Hope for the best and expect for the worst. So, you got to be prepared for what will possibly happen. Make sure that you are ready for anything, work while waiting, and you’ll see positive results if you continue your passion and dedication.
With patience, you will not feel tired and depleted. Let’s say it will take a few months or even years before you experience the fruits of your labor. Everything will be worth it if you continue to run the business and wait for it to become successful.
Conclusion
Try to rate yourself in the ways mentioned above. For 1 be the lowest and 5 be the highest. If you rated yourself 4 or 5 in each item, that means you are confident. And you trust yourself that you can be able to achieve a successful franchising business.
If you find yourself lacking self-esteem and the resources to start a new franchise, do not feel demotivated. Use that as an opportunity for you to grow and get ready for business ownership. It is important to see positive things behind negativity to pursue your goals.
There are many good franchise companies but no franchise is the right one for everyone. Keep looking until you find the one that seems to match up well with you or get help from a franchise consultant. You will end up not only happy but fulfilled. And, you will have moved closer to being a successful franchisee!
You may also like to read: “Has COVID Pandemic Destroyed the Franchise Industry?”