If you’re thinking of investing in a franchise, there are a number of traits needed to be a great franchisee. Do you have the key characteristics to become a successful franchisee?
In order to become successful as a franchisee, you need to know what you’re good at and to understand your limitations. Your franchisor will train and support you to become a franchisee but they cannot run the business for you. You need to consider all the different aspects about yourself that can benefit the business. Think about things such as how many hours you’re willing to put into the business and if your selected franchise fits in with your life aspirations.
Franchising is often described as working for yourself but not by yourself. Your franchisor is there to support you and has already proven the business model. The franchise model is a proven system designed to be followed. To stray from the path will cause your business damage. There is a reason behind why the franchisor does things in a certain way. Follow their system and you are a lot more likely to be successful.
Just like any business, running a franchise is hard work. As much as the franchisor will support you, they will not be there to wake you up every morning to make sure you’re working. It can take time to make a profit and to see your hard work paying off. But if you have the motivation to get up and get going each day, then you will soon get the business on its feet. Having long-term goals can keep you going at the beginning but you need to be able to drive yourself forward, not wait for someone else to take the reins.
In all careers there will often be setbacks, and as a franchisee you will experience them too. This could be anything from downturns in the industry, losing an important client, or even having a key member of staff leave. You will need your resilience to get you through these possibilities and to keep working towards your goals.
Buying a franchise is called an investment for a reason. The majority of franchise business will require an initial franchisee fee and an ongoing fee. You need to ensure you are prepared for the different costs involved – including marketing fees, legal fees, and working capital. Speak to your franchisor openly about the costs of the franchise and where you stand now. The British Franchise Association can also provide expert advice on financing and franchising.
The franchisor/franchisee relationship is an important part of any franchise. Excellent communication and a robust relationship will be required for success. If you are not happy about something, or have a suggestion to improve the business, you should be able to communicate that effectively to your franchisor. Similarly, you will need to communicate well with your suppliers, customers and staff members as they all play a part in your success.