Do you want to become a businessperson and be your own boss? There are three ways for you to achieve that. You can either start from scratch, purchase an existing business, or buy a franchise. If you’re the type of person who prefers a structured environment, the franchising route may be for you. With nearly 300 industries offering franchise opportunities, you’ll have many franchises to choose from to open up your own business.
While buying a franchise right away is easy, remember that it requires a massive investment. Not only are you purchasing an existing brand, but you’re also buying a business system and signing yourself up for a larger network of businesses. And one mistake that most franchise buyers make is automatically assuming and being too confident that a franchise means guaranteed success. In reality, buying and managing a franchise requires proper planning and managing, the same as starting a business from scratch.
If this is your first time, you might find yourself wondering, “How can I start my own business with franchising? What can I do to be successful?” Don’t worry. There are a few tips and strategies you can learn.
Read on to discover the five beginner strategies that will help you turn your franchise into a successful business venture.
Assess the demand for product/service in your area.
Assess first if there’s a demand for that product/service in the particular area you intend to open your franchise. Suppose you’re considering opening a soccer program for kids and buying from an overseas franchising license in Australia. Keep in mind that just because the soccer program in Australia is doing so well doesn’t mean it will be equally successful in your country or state.
So, research and determine how well a kids’ soccer program will be in-demand in your area. Are you planning to open it in a city with nearby schools and daycare centers? Are plenty of kids in your area enthusiastic about playing or practicing soccer? Is soccer a popular sport in your state? If the demand is high and you don’t see any competitor offering such a product or service, this may be a good sign of investing in that franchise and opening your own business.
In contrast, if the demand is high, yet there are already existing competitors offering the same product/service, do more research and determine what you can do to make your franchise stand out from the rest.
Prepare enough capital for the startup costs.
The franchising costs may vary for each business. So, before you invest in one, prepare and save up enough capital for the startup costs that can keep you in business for at least six months or longer.
How much should you budget for the startup costs? Franchise startup costs may range between USD$10,000 to as high as USD$5 million. Ultimately, it depends on your chosen industry, location, and type of franchise. Home-based and mobile businesses are known to be the cheapest franchise types, while full-service and reputable hotels and restaurants are the most expensive.
If you don’t have enough cash to cover the startup costs, you may have to apply for a loan with the franchisor, your bank, or other lenders. Ensure you have a good credit score to apply for a loan and open a franchise.
Be prepared to market and advertise your business.
One of the perks of starting a franchise is that your marketing and advertising efforts won’t have to be as heavy and tedious as promoting a brand-new business. This is true, especially if you’ve purchased a reputable or internationally known franchise.
Nevertheless, you must still invest in marketing to maintain the brand’s reputation and increase your business sales. Remember that even with a famous franchise, people wouldn’t know that your business exists if they don’t know where you’re located.
If you’ve bought a franchise that isn’t as well-known as, say, McDonald’s or Taco Bell, you’ll need to establish enough budget and create a franchise marketing plan. Remember that marketing your franchise not only helps promote your business, but it also benefits the rest of the franchisees and overall businesses.
Provide high-quality customer service to maintain a good reputation.
Managing a reputable franchise doesn’t mean you can cut corners in your services or product quality. Otherwise, this could impact the quality of service your customers receive and negatively affect their level of satisfaction. 96% of customers are more than willing to leave a business the moment they receive bad service.
Furthermore, whatever mishap or poor-quality service you provide can reflect badly on the rest of the franchises around the state or country. So, always aim to provide high-quality customer service to preserve the reputation and credibility of your franchise’s brand.
Be passionate about your chosen franchise and your offered product/service.
Running a successful franchise isn’t always determined by the numbers. It’s also about the satisfaction your customers feel towards your business. And one way to boost customer satisfaction is being passionate about your chosen franchise and offered product/service. That’s why choosing a franchise that aligns with your passion or skill is recommended.
For example, you’re a former soccer player or a soccer enthusiast for several years, and you’ve chosen to buy a franchise for a soccer program for kids. Managing a franchise that syncs with your passion will make it easier for you to bring in that energy and enthusiasm when talking to your customers, or in this case, the kids who wish to learn and play soccer.
Conclusion.
The success of your franchise doesn’t depend on how popular or reputable it is. It’s about how you put consistent efforts into maintaining high-quality services, marketing, and following the set processes offered by the franchisor. Even as a beginner, you can incorporate some of your unique ideas to help your franchise embrace the dynamic changes in customer demand.
