How to succeed as a franchisee

Franchising a business can be tricky — almost a game, demanding the right growth plan and strategy. Multiple franchisees fail, and hundreds succeed. The failure can be triggered due to lack of funds, the wrong concept, and poor management. How can franchisees succeed? Here are a few pointers to get the franchise formula right:

1. The right product:

One of the most important decisions to take is to select the right product. This can go a long way in the success of the business. Choose a product that you care about, one that matches your interests. The concept should also connect with consumers, and enhance customer value. This will develop and better your customer base, improving sales and business.

2. Location matters:

Many businesses target prime locations, simply because the sales generated from these locations is much higher than those from remote locations. Though the outskirts prove to be more economical, customers may find it inconvenient to reach the outlet. How can you spot potentially successful locations? The inexpensive way would be to buy demographic reports for any postal code in a country. The reports show population and lifestyle trends. A more expensive method, costing thousands of dollars, would be to buy a GIS software.

3. Great customer service:

Customers are your biggest revenue drivers, and good customer service is key to running a successful franchise. Ensure that investments are made to meet customers’ demands — be it working overtime or making changes to the product.

4. Funding your franchise:

Franchising is heavily dependent on the business plan. This demands funding, and proper management of finances. The initial operating costs can be high, and most franchisees new to the business may not anticipate this. When faced with unanticipated events, the franchisee may resort to heavy borrowing to meet the downturn. This may lead to bankruptcy. Ensure adequate finances to meet emergencies, and always drive the business with realistic optimism.

5. Getting hands-on:

Franchisees who delegate the many roles in a franchise to managers might not see much success compared to those who get hands-on with their daily operations. Since the business model is mostly customer-centric, knowledge of what’s going wrong (or right) can help in making improvements or changes. This can only be done if the management is involved at the ground level.

Bringing it all together

Availing the right concept and a disciplined business model, franchisees can create a successful brand name. Grow at a scale that’s apt for your organization, and target the right locations. This can ensure good sales and market for your product.