According to the International Franchise Association, the GDP (Growth Domestic Product) for the franchising sector grew by a little more than six percent to $451 billion in 2018. It is a great time to be in the business, but if you are a new franchisee, this world can seem a little bit daunting, with all the rules and regulations and the many facets to the business. Don’t worry though. We are here to help. Here are 12 smart tips for new franchisees.
1. Get Involved in Leadership Opportunities
Get involved in as many leadership opportunities with your franchisor as possible as a new franchisee. Not only will it get you positive notice from the leadership team, it is also the best way to learn everything you can about your particular franchise and how it works.
2. Study Hard While Training
When you join a franchise program, the franchisor offers you training to help you get started. Take advantage of all the training opportunities they offer and study hard throughout all of your training. The more prepared you are, the less surprises and potential mistakes there will be as you open your location.
3. Be Willing to Work Hard
Opening and running a franchise is a 24/7 job so you need to be willing to work hard or you won’t be able to achieve the level of success you want. As the owner of the business, you need to be constantly available to not only put out fires, but to make sure all the facets of the business are getting the attention they need. And at the same time, you also need to be looking towards the future and planning ahead so you meet all your goals.
4. Be Passionate About What You Are Doing
Because of all the hard work required of you, it is paramount that you have a passion for what you are doing. If you are not excited about your business, it is going to be real hard to muster all that energy and attention to make it the best that it can be.
5. Don’t Be Afraid to Ask Your Franchisor for Help
Most franchisors are not super hands-on once you are fully up and running. The daily operation of your franchise is your responsibility, but that doesn’t mean you can’t ask your franchisor for help. If you are struggling in some way, they of course will offer support. They want all their new franchisees to succeed.
6. Develop a Good Relationship with Franchise Executives and their Management Team
Hopefully you will be involved with your franchisor for a very long time so it is crucial that you develop a good relationship with all the franchise executives and their management team. It will be a lot easier to work with them if you like and respect them and felt you could trust them even with personal situations.
7. Follow the Franchisor’s Systems to a T
The whole point of joining a franchise program instead of launching an independent business of your own is to be able to have extra support and structure. You are doing yourself a disservice to yourself and your business not to follow all the systems the franchisor provides you with. This includes systems for sales and marketing, production and administration.
8. Attend Conferences, Workshops and Annual Conventions
To be as successful as possible as a new franchisee, you need to learn as much as you can from those who have more experience than you. Industry or even franchise-specific conferences, workshops and annual conventions are a great way to do that. It is also a good way to network with your peers.
9. Keep Track of Your Finances Carefully
In the franchise industry, there is a constant flow of money coming into and out of a business so having an accurate accounting system is a must to keep track of your finances carefully. You should also prepare monthly financial statements that include profit and loss, balance sheet and cash flow.
10. Create a Three-Year Plan for your Business
Even if it is not required by your franchisor, you should always have a three-year plan for your business. It doesn’t have to a big formal thing like the overall business plan you submitted to your franchisor in the beginning, but it should lay out specific goals for the next three years so you can plan accordingly to make sure you have the money and staff to achieve them.
11. Hire the Best Talent Possible
Another smart tip to keep in mind is to always hire the best talent possible. Don’t let the stress of getting up to full staffing convince you just to hire people that are only adequately suited for the position. If you end up with a lot of dissatisfied employees and a high turnover rate, it is going to hurt the consistent and quality of your products and services.
12. Make Sure You Have Enough Capital to Grow Your Business
Finally, you need to secure enough capital to not only get your new business launched, but to also handle the first couple of lean months as well as enough to help you to continue to grow your business.
These 12 smart tips for new franchisees can help you better navigate the somewhat choppy waters of the franchise business. If you are still looking for possible franchising opportunities, consider Chaps Pit beef franchising. Home of the Best Pit Beef Sandwich, Chaps is in the process of expanding and has territory available.