Franchise businesses are a great option for anyone who doesn’t want to set up a company from scratch. These opportunities give you all of the perks of entrepreneurship but with fewer downsides.
Even so, getting it right requires the proper approach. Many people jump into franchise opportunities unprepared and wind up getting into trouble.
That’s where this post can help. We look at what it takes to set up a successful franchise and how you can make your business dreams come true while avoiding disappointment.
Research Your Target Industry
The first step is to research your target industry. Be discriminating when it comes to franchise selection. Some opportunities will provide you with giant rewards, while others will leave you scrabbling around for pennies and could be even worse than working a regular job.
Check Your Financing
The next step is to check your financing to see whether you have the funds to set up a franchise business. Getting started often requires paying a franchise fee and demonstrating you have some minimal capital level. You can ask investors to go in with you or borrow money, but remember that these approaches will always eat into your returns, reducing the amount of money you make.
Check The Location
You should also check the location of the franchise. While the overarching business might be a successful, well-known brand, no individual shop or outlet is guaranteed success.
You should think carefully about things like footfall and ease of access. Don’t set up a restaurant on an out-of-town estate that nobody ever visits. Apply your common sense when looking for somewhere to set up and gather as much data as you can before making a decision. Don’t assume that if you build it, they will come. They might not.
Start Marketing Early
Even before you set up a location, start your franchise email marketing. Ensure you properly communicate with your target audience, telling them about your new venture and what you offer. Get people excited about opening day and what’s going to happen in the future.
When marketing, ensure you adapt what you say to the local context. Leverage the franchisor’s existing, proven marketing tactics, or get an agency to enhance them for you so you can have a bigger impact while remaining within the guidelines and rules.
Monitor Your Performance
Once you start making sales, ensure you monitor performance across your business. Track things like customer satisfaction, employee retention, and sales. Look for reasons why declines in these metrics might occur.
If you aren’t sure how to analyze these results, ask a technical colleague or agency to do it for you. Alternatively, use software that does it for you automatically.
Adapt And Innovate
Finally, don’t be afraid to adapt and innovate. Stay the course and leverage the franchise system to benefit yourself and the owner.
Don’t sweat the fees. Instead, see them as a cost of doing business, just like paying the rent. Instead, find ways to eke out better margins and improve your overall business.