Secrets of running a Successful Franchise Business
Joel Caws - Technical Director, Select Your Franchise
Some businesses seem to do well and some fail, its a fact of life. But what are the determining factors between success and failure? Could there really be some magical formula that can help you run a successful business?
Firstly, choosing a franchise business can give you a good head start since it is based on a proven formula. That is to say that the hard work of finding out whether a business idea actually works has been done, tested and proven by the franchisor. Most franchises started out as a single outlet business idea and having been found to be successful the business owner might choose to franchise the idea as a way to expand the business.
Once you are up and running with your new franchise, how best can you maximise the possibility of success; what are the secrets to running that successful business you have dreamt about?
In reality, there’s no real secret, but simply some common-sense pointers which can help to increase your chances of success. Here are 4 common-sense tips to help you get started on your road to success:-
1. Work hard
Yes believe it or not a business requires hard work and time if you want to achieve success. Be under no illusion, a franchise business is not a ‘get rich quick’ scheme but rather a platform on which you can build a long lasting, stable business. Work hard to promote, market and sell your business – if customers don’t come and buy then you won’t be in business for long!
2. Talk to the franchisor
The franchisor knows the business model better than anyone else does. After all they came up with the idea! Make use of any training and support provided – its there to help you be a success.
3. Know your business
One of the biggest mistakes for any business is having a poor handle on its performance. Make sure you are getting the reports you need from your book keeper or accountant in terms of financial performance of the business. Knowing your position is critical to spotting problems before they get too big and is key to being able to plan strategically how the business is developing.
4. Hire the right staff
If the business requires you to recruit staff make sure they are the right people! Its not just about skills, but can you get along with them, and can you trust them to carry out the tasks you require them to do. Remember that especially for sales people buy into the salesperson just as much as the product. So are they like-able, presentable with good attitude and manners.
Of course, there are other elements which can all help to achieve that success you are looking for. Feel free to comment with any additional ideas you might have.
5 Things to Consider when Researching a Franchise
Nick Strong, MD - Select Your Franchise
Finding the right franchise can be the difference between success and failure. For this reason its important that you are choose to start a business you enjoy and are motivated to see succeed, and also that you get along and enjoy working with the franchisor.
The following 5 points might help when researching a franchise opportunity that you’re interested in:-
1. Reputation and Brand
Have you heard of the company? And what reputation do they have? This is common sense in actual fact but its also worth mulling over that there are lots of less significant, lesser recognised brands which might still have a decent reptutation and so are still worth thinking about. Not all franchisors invest in high profile branding on television or ad boards but this is not necessarily a motive to ignore them if they can show you a track record of industry reputation and integrity.
2. Support & Training
Ensure you pay a visit to the head offices of any franchise business you consider. It should give you some helpful insight into their company and whilst you’re there you can inspect any training facilities and documentation they have available. It will also give you a feel for the people behind the business and whether you like them and could see yourself working with them. Remember, starting up a franchise business will be a long term commitment.
3. The opinions that matter
Who better to chat to, to find out if a franchise is good or not than the individuals who essentially operate or purchase its goods and services every day. The internet is a growing voice when it comes down to service levels experienced by consumers on goods and services. A swift search on the web for the franchise system with ‘review’ tagged on the end will typically give plenty of results posted by folks who have experienced the franchise system first hand, both good and bad. Getting hold of a list of current franchisees from a franchisor that you might be interested in, is another way of getting some useful insight. Call them and chat about how the franchise works for them.
4. Finance
Finance will be a determining factor in the franchise you choose that might simply come down to affordability. Knowing what you can afford will be essential before beginning to look at franchises of interest. Most high street banks now have franchise sections which provide assistance solely to those looking to start up a franchise. Talking to them first will help you to work out how much you might be able to borrow in order to start a franchise. Armed with that information, you can then look at franchises that fall within your budget.
5. Associations
Consulting the Franchise Association in your country can also be a useful step. It can be most useful to find out if the franchise business you are considering is a member and, if not, has the Franchise Association heard of them. The franchise association is also a great resource for finding other professionals such as accountants, lawyers and consultants that can assist you.
Finally, the good, old fashioned gut feeling can’t be under-estimated! Do you feel comfortable when you first meet the franchisor? Do they inspire confidence and trust in you? Don’t be fooled by promises of quick riches… on the contrary, a franchisor who seems to have more down-to-earth attitude about building a solid, long term business is probably a better choice.
Work from Home with a Web Based Franchise
Joel Caws - Technical Director, Select Your Franchise
As someone who uses the Internet every day, I see many different money making opportunities relating to the web. For the most part they turn out to be network or pyramid type schemes which depend on recruitment to make any real money. For the first recruits to the network it can be lucrative but the further you get down the line the more disappointed you are likely to be. I have no doubt there are actually some which are genuine and that work over time, but I’ve become highly suspicious of anything that seems to promise fast rewards for minimal work.
Of course the attraction is clear:
- Work from home
- Manage your own time
- The money you make is yours and yours alone
No surprise then that these types of opportunities are prolific online, simply because they appeal to our greed and attract us to a more desirable lifestyle.
Although many of these ‘opportunities’ might leave you disappointed, there is hope if you are prepared to put in some hard work.
There are some good web based opportunities to be found within franchising. Rather than an empty ‘get rich quick’ scheme, these tend to lean toward the building of a solid business over time. Most of these franchise opportunities fall into two camps and are targeted primarily at business customers:-
Web Design & Marketing Franchises
This is basically providing web site design services or marketing services. This could be as simple as providing turn-key website solutions or marketing services such as search engine optimisation.
Online Business Directory Franchises
With more people online, the web is becoming increasingly important even for local businesses to reach their community. Online business directories operate locally to promote local services to the local community. Customers therefore are primarily the local businesses.
The advantage of choosing a web based franchise over some other opportunity is primarily that it’s a tried and tested system. The franchisor has proven the concept can work and can be profitable. All that remains is for you to follow the system in the same way the franchisor did with their initial pilots. In addition, a franchise usually comes with support and training so that you know first hand how the business is designed to run.
The working from home element of an Internet franchise gives you much flexibility of course. If you have a young family it can allow you to manage your time and work when it best fits your schedule. Overheads are kept low as there is no need to rent dedicated premises.
Whatever work you decide to do from home, remember that it takes good old fashioned hard work to succeed. Every business venture carries an element of risk but you can help to reduce the possibility of failure by researching thoroughly the business opportunity you are looking to take on and then committing yourself to making it a success. With the right franchise business and an attitude of hard work and dedication, you could be running a successful web based franchise business from your own home.
Tags: franchise, home based franchises, internet franchise, joel caws, web based franchise, work from home
