Taking on a franchise is an attractive small business model – the core business and company ethos are already established, and you can make the most of your franchise’s good name.
So just what can you do to make your franchise a success?
Here are three tips to get you started….
Choose Your Location Carefully
Location is vital when setting up your franchise.
It can be tempting to opt for out of town locations in order to keep costs down – prime high street real estate comes with prime fees – but go too far out of town and you risk missing out on customers.
Take the Carytown, Richmond branch of Mellow Mushroom. The area has an older demographic which suits the pizzeria perfectly, with the franchise earring $3 million in its first year.
Think carefully about your target demographic and the places they frequent.
Wherever you choose, be proactive in reaching out to customers and drawing attention to your location.
Mind Your Finances
As the article “Top 3 Lessons for Franchise Business Success” points out, learning to manage your finances is key to running a successful franchise.
You’ll need some capital to get your franchise up and running.
For example, opening a branch of Capriotti’s sandwich shop will cost you a $40,000 franchise fee, and the company estimates that you’ll need anywhere from $197,000 to $607,500 to get your branch of Capriotti’s off the ground.
As well as start-up fees, you’ll need to have a think about which franchise is right for you.
The right pick can be lucrative – one branch of Capriotti’s in Las Vegas regularly pulls in approximately $1.9 million in sales each year. Choose one with a proven track record; after all that’s one of the benefits of franchising.
Once you’re up and running, keep a tight rein on your finances. Always be on the look-out for ways you can cut spending and increase sales.
Build a Strong Team
The success of a franchise rests on its employees. Building a strong team can make all the difference to your franchise.
Take BrightStar Care.
The homecare franchise has seen its success grow in recent years, expanding to encompass five locations and $9 million in annual sales.
Part of the secret to BrightStar’s success is finding employees that have the compassion needed to offer first class customer service.
When it comes to your employees, training them to offer the best customer service should be a priority.
Treat your employees well – consider offering benefits such as dental, medical or a pension scheme. Employees who feel valued are more likely to work hard for your franchise.
Look for employees who have the skills necessary to benefit your franchise. Draw up a clear list of what you require in an employee before you advertise a position.
Running a franchise can be a profitable and highly enjoyable small business model.
By starting with such key areas as your franchise choice, your location and your people, you can create a strong foundation on which to build a successful franchise.
About the Author: Tristan Anwyn is an author who writes on topics including social media, SEO that works, and how to run a successful small franchise.