So you’re ready to go into the franchise business. You completed all the necessary research including scraping together enough money for an initial investment and now it’s time to take the plunge. A few tips before you decide to take in the plunge.
Location, Location, Location
Just like in the world of real estate, your choice of location is everything. Executives from McDonalds traveled to business schools across America and asked one simple question “what business are we in?” Many students stated burgers, fast-food or restaurant business. The unequivocal answer from McDonald’s was “real estate”. The choice of location for the franchise was the most critical factor to their success. You can always work on better customer service or enhancing your supply chain, but it’s difficult to change real estate. Obtaining the right demographic and traffic counts will be critical to success.
Be genuinely interested
Do not randomly pick one of the top 10 franchises or worse pick a franchise based on minimal start-up costs. You should be excited about what you are doing. Make sure you have purpose and passion behind your franchise choice. You should swing your feet out of bed every morning in hopes of serving your customer base and growing your business.
Have a relationship with the franchise
If you buy a franchise through a third party or a sales person there might be a disconnect when you attempt to get support for your company launch. Especially because non-franchise personnel have no skin in the game after the sale is made. You will want to ensure that full support will be given with your franchise choice. Be comfortable with a contact that has direct roots in the franchise and be able to hold your proverbial hand and guide you.
Stick to the formula
Taking on a franchise and going your own way rather than utilizing the franchise formula is a recipe for disaster. If you have your own idea on how a specific business should be run don’t take on a franchise model. Otherwise, embrace the fact that a successful formula is in place and do what you can to enhance the successful business model.
Personnel
Human capital will be your most prized asset when you start-up initially and certainly as your business grows. Just like in any business, your employees will be the heart and soul of your franchise mission statement. Personnel can make or break your business. Ensuring the franchise philosophy and your own business plan is properly executed will depend on who you hire.
These tips will hopefully bring you one step closer to starting and growing a successful franchise.
Location, Location, Location
Just like in the world of real estate, your choice of location is everything. Executives from McDonalds traveled to business schools across America and asked one simple question “what business are we in?” Many students stated burgers, fast-food or restaurant business. The unequivocal answer from McDonald’s was “real estate”. The choice of location for the franchise was the most critical factor to their success. You can always work on better customer service or enhancing your supply chain, but it’s difficult to change real estate. Obtaining the right demographic and traffic counts will be critical to success.
Be genuinely interested
Do not randomly pick one of the top 10 franchises or worse pick a franchise based on minimal start-up costs. You should be excited about what you are doing. Make sure you have purpose and passion behind your franchise choice. You should swing your feet out of bed every morning in hopes of serving your customer base and growing your business.
Have a relationship with the franchise
If you buy a franchise through a third party or a sales person there might be a disconnect when you attempt to get support for your company launch. Especially because non-franchise personnel have no skin in the game after the sale is made. You will want to ensure that full support will be given with your franchise choice. Be comfortable with a contact that has direct roots in the franchise and be able to hold your proverbial hand and guide you.
Stick to the formula
Taking on a franchise and going your own way rather than utilizing the franchise formula is a recipe for disaster. If you have your own idea on how a specific business should be run don’t take on a franchise model. Otherwise, embrace the fact that a successful formula is in place and do what you can to enhance the successful business model.
Personnel
Human capital will be your most prized asset when you start-up initially and certainly as your business grows. Just like in any business, your employees will be the heart and soul of your franchise mission statement. Personnel can make or break your business. Ensuring the franchise philosophy and your own business plan is properly executed will depend on who you hire.
These tips will hopefully bring you one step closer to starting and growing a successful franchise.
