Franchising is undoubtedly one of the best ways of starting a business. However, it is advisable to enter the world of franchising, armed with detailed knowledge
Getting into a franchise for the first time can be overwhelming. Franchising is undoubtedly one of the best ways of starting a business. However, it is advisable to enter the world of franchising, armed with detailed knowledge. It is worth conducting an assessment and gather information from fellow franchise owners to know what it takes to get the success in franchising. It can be a tedious task, but we have done the work for you. Below are the top 4 tips from franchisors which the first-time franchisees should consider before signing the agreement and making the initial investment.
Do Your Homework
It’s true that franchisors provide every support in setting up the new franchise business. But, that doesn’t mean that the franchisees will sit back and relax. As a first-time franchise, make sure you understand the nitty-gritty of a franchise business. Making your franchise successful requires a lot of effort and hard-work; make sure you have the zeal and dedication to run all day long. Also, make sure that your goals and ideologies match with your prospective franchisor.
Scott Thompson, CFE, Senior Vice President of Global Franchise Development, Tutor Doctor, said, “When you are working with a franchisor do your due diligence… make sure they have a strong process, strong support system, tools and planes to be successful and make sure that the culture aligns with your values.”
Location can make or break your business and in almost every case, the franchisees are themselves responsible for selecting the location for their franchise. You should consider a number of things before fixating in a particular location, like competition, traction, budget etc.
Tapas K. Mallick, Group CEO, DIVINITI, “The primary thing that a first-time franchisee should see is Location! So, the first thing to check is whether it will have the desired footfall, and will the selected location caters to the target audience.”
Plan in Advance
Apart from the business plan, make sure you have planned well for the future also. Your business plan will act as a guide to establish your business, but it is also essential to have a detailed plan of how you will act after it gets successful.
Starting a franchise is a long-term commitment, and there is no easy way out if things don’t work out your way or if you find that it’s not for you.
Andrew Walters, Director of International Business Development, Stagecoach, said, “In the start-up phase you may have a little bit more time than when you are in the full mode go. So make sure that you plan and prepare adequately while you have time at the beginning because you won’t have the time when you start running fully.”
Hiring is Fundamental
A franchise is a proven business, which is already successful in other locations. One thing which can doom your franchise is staff. Hiring good staff is necessary. You need to understand this fact that you can’t do everything on your own and need to hire competent staff to bridge that gap.
“There will be things you are good at, the things that you like doing, but make sure that you do not miss out on things that you are not so good at. So, recruit good people to fill those gaps.” stated, Walters.
“Also, look after your staff. They are your best representative so look after them,” added, Walters.