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One of the easier ways to start a business is through franchising, which is essentially purchasing the rights to use a successful brand and business model for a stipulated amount of time. But more than simply using the name of another business you’re really also adopting its entire value chain for use, with the franchisor also providing tangible and intangible support from the provision of specific equipment for use to marketing support and business know-how.
But just because you managed to land the franchise rights to a successful brand does not lead you to automatic business success. Making any kind of business work requires plenty of hard work, business-savvy and no small amount of luck. Oh, and heeding the following four tips may help:
1. Love what you do.
Far too many people think that the most important part of starting a franchise business – no thanks to the way many franchise business trade exhibitions are run – is to identify the franchisor that will give them the easiest path of success. While they are not entirely wrong, it is also crucial to actually pick an opportunity whose business model is something that you believe in and will have passion for. For example, you may love children and have a desire to prepare them for the future – you may want to take up a franchise for a business that focuses on children’s education, such as Mathnasium; or you may want to opt for something in landscaping if you enjoy working outdoors.
A good franchise opportunity can bring you success; a passion for meaning in that business increases your chances of success immeasurably.
2. Location, location, location.
We’re not just talking about picking the right shopfront in your area – just because a franchise business in proven in another city does not mean it will be the right one for yours. And just as population demographics can differ greatly from city to city even within the same state, it can vary in different districts within a city as well. Doing your research will help identify the right areas to set up your franchise business.
It is also not uncommon to have business owners even choosing to relocate to a different city with the right target demographic in order to help their franchise business succeed.
3. Understand that franchising is a partnership.
Like in any other relationship, picking up a franchise is essentially coupling your future with another partner or entity – the health of your business is similarly tied with the health in your relationship with your franchisor. The best franchise businesses are the ones whose franchisor and its franchisees work together on similar goals and have a mutual understanding and respect for each other. Open lines of communication, active collaboration and support are critical to your business success.
Always remember, your franchisor wants you to succeed too.
4. The right processes and systems will make or break your business.
One of the key reasons for choosing a franchise is to “borrow” the systems and processes of a successful business, lock, stock and barrel. Your franchisor would have had spent countless hours in research and development to hone those processes to their utmost efficiency and efficacy. As much as you’d like to focus on the sexier aspects of the business such as marketing and promotions, maintaining those systems and processes in tip-top condition – training your staff to adhere to those processes, spending time and resources in up-keeping those systems – is critical keep your operations running smoothly.
Not to mention, this is probably a requirement stipulated by your franchisor!
Franchising is a proven way to business success. All you need to do is keep these tips in mind, and you should be able to make it work.