Franchise ownership is ideal for a hopeful entrepreneur: the best franchise opportunities offer a stable business with guidance to a business plan and a model of how it should run. But it takes work to make a franchise truly work. Use our list of tips as a guide for building a successful franchise.
A Franchising Model That Makes Sense
It all begins with the business itself, and whether that model makes any sense. You need to examine the businesses’ value proposition, take a look at what service they’re offering. Is it something that people want or need? Cleaning franchises follow a historically successful model, offering a service that a lot of people are looking for, and providing low startup costs and operating expenses.
The Power of Networking
The franchising community in any particular city can be very large, and can be a great wealth of information for any aspiring franchisees. Networking within the franchise community can help you learn best practices for franchises and within your industry. It can also help you understand the territory where you’re considering opening up a franchise. What territory needs the service you’re interested in, and what territory doesn’t? Networking offers opportunities to gather some information on what your competitors might be doing, and will allow you to pick up some new ideas for your business. Staying isolated in your franchise means that you’re never going to be exposed to better ideas and methods.
It’s possible that the franchise you’re looking at is not seeking to move into new territory, but to reinforce territory it already has. If that’s the case, consider how saturated the market already is: both with that franchise, and with any similar franchises. A low degree of penetration means there’s plenty of room to grow, your area needs more businesses like the one you’re considering. A high degree of penetration is something to watch out for: the market may not sustain many more businesses. McDonald’s is a good example of a high penetration franchise, with limited room for growth.
Recruit the Best Employees, and Treat Them Respectfully
A franchise is more than just the owner. Good employees are essential for a successful franchise: they’re the backbone of the whole enterprise, and good ones can be hard to find. When you do find them, make sure you keep them. Implement a training program for your employees, and hold refresher classes to make sure that everything runs smoothly. Offer fair rewards and incentives, and work with them to see what’s working and what isn’t.
There’s a lot of competition out there in the world of franchising, and while it might seem like a daunting thing, you have a variety of tools at your disposal to ensure success. Starting with the right plan and the right franchise goes a long way, and having the perseverance and dedication to follow it up could mean that you’ll be operating your own franchise in the near future.