What if your franchise investment financially ruins you?
Most entrepreneurs hope opening a franchise is their key to sustainable profit. However, it’s easy to make rookie mistakes that sink your business before it really gets off the ground.
Fortunately, you can follow the tips of successful franchises to make your own a smash hit! Keep reading to discover our handy hospitality help guide.
We hate to burst your bubble, but there’s something you should know: you’re not going to get rich quick as a franchisee.
Owning a franchise is mostly about embracing the “slow and steady win the race” mentality. Your goal is a steady profit, and it’s hard enough to meet that goal. Overnight superstardom is not going to happen for you.
It sounds simple, but adjusting your expectations is one of the best moves you can make early on in your career. Instead of planning for explosive short-term success, you’ll start planning for long-term gains and growth.
All in all, it’s very Zen: only by accepting the genuine possibility of failure can you achieve success.
Many workers see training as a one-shot deal. Someone like managers gets specific training when they are hired, and then they are good to go…right?
However, the challenges facing your franchise are going to change from year to year. And over enough time, your key demographics will change as well.
The solution to this is ongoing training and professional development opportunities for your managers and top leadership. You can provide such training via multiple methods.
For example, training may be delivered via computer, in-person, or even via productivity apps such as Slack. Not only does this build better leaders, but it shows your employees you are invested in their success.
A successful franchise is something of a paradox. On one hand, part of your appeal is that customers are already familiar with your brand.
On the other hand, customers still want a unique experience. And this is where many franchises drop the ball.
You need to appeal to customers at the individual and community level. Don’t just sell them products: special host events, sponsor local charities, and so on.
Ultimately, you will attract more customers because they’ll want to support a company they see as supporting their community!
Talk With Your Peers
Sometimes, the simplest solutions are also the most effective. Want to figure out what makes a successful franchise? Then you should talk to a successful franchisee!
Don’t talk to just anyone, though. Ideally, you should speak with someone who owns a franchise of the same company and is relatively close to your area.
Such a person will know the ins and outs of running a successful franchise while navigating various corporate rules and regulations. And they will also understand what makes the local population tick, giving you an advantage when it comes to sales and marketing.
You can also pair such discussions with your own external research. For instance, this helpful page is invaluable for those wanting a hotel franchise!
Want to hear the three words that spell doom for a franchise? Here they are: “not my job.”
Every employee has a unique role to play in your organization. However, some employees are unable (or unwilling) to do anything outside of that role.
In a successful franchise, everyone should be willing to train everyone else. Employees shouldn’t be limited to their unique skills: they must be able and prepared to teach those skills to other people.
Make sure you are clear on this policy to anyone and everyone that you hire. When every worker is also willing to be a trainer and a leader, you will create a culture of success.
Set and Measure KPIs
Look, we get it: chances are you went into the franchise business to get away from the corporate world and be your own boss.
Nonetheless, certain corporate concepts will help your business succeed. One of the most important is that you must have Key Performance Indicators.
The basic idea is that your franchise is never genuinely successful enough. You should have specific goals for the next weeks, months, and years, and you must have ways of measuring your success.
One simple way to do this is to rely on secret shoppers. That way, you can accurately gauge the experience your average customer has been having.
Location, Location, Location
You can build your franchise pretty much anywhere. Of course, that can be a good thing and a bad thing.
Many owners pick a location by going with their gut. But trust us on this one: you’ll want to go with your brain instead.
It’s essential to think like a customer. Is your location close enough to the centre of town? Do you have enough parking for everyone?
Be brutally honest about what the location will mean for your customer’s experiences. If things are annoying or inconvenient, they will quickly move on to a more convenient rival business!
Focus on Retention
Know the phrase “a bird in the hand is worth two in the bush?” That phrase applies to employees as well!
It’s great to think about strategies for hiring new employees. But it’s actually much more important to hold onto the employees that you already have. They are going to be your most knowledgeable and most efficient workers.
Try to pay attention to how long the average worker works in a position before quitting (management software can help with this). It may be possible to provide reorientation, training, or incentives to retain these workers for longer periods.
For the most part, your customer’s experience is determined by your employees. It’s worth it to hold onto the best ones for as long as you can!
Successful Franchises: The Bottom Line
Now you know the secrets of the most successful franchises. But do you know where to get more of the info you need?
At Business Blog Hub, we bring you the advice you need to make your company shine. To discover your next moves, check out our management tips today!