5 tips for a start-up franchise
If you're a business owner turning to franchising to grow your brand, here are five simple tips to consider.
1. Make sure you have tried and tested your business system before you launch
Before you launch it’s important you have thought about, and experienced just about every problem possible in running the business. It is then crucial that you establish solutions for these potential problems before you launch. It's also essential to understand exactly what are your drivers for the business and specify the key performance indicators against which performance can be measured.
2. Employ the best team you can afford
Talented people can be difficult to find, this is why I recommend developing a policy to employ the right people in the right positions. I made it a priority to employ the best and most qualified people as I found them and, even though it may have been a stretch to meet those costs at times, the value of those employees usually returned to the business tenfold. I estimate that having a high calibre of staff can affect revenue by up to 65 percent.
3. Ensure you have great relationships with suppliers
Your relationship with suppliers has to be two-way and it should be based on honesty, credibility and a desire to build a sustainable relationship. It’s important to remember that price is only one element of your relationship and you should look for suppliers who offer training and technical support, as well as reliability.
4. Have a clear vision and communicate it often
Ensuring your staff and franchisees understand your direction for the business is very important. Providing them with a clear pathway is also important to ensure you achieve your brand goals. By clearly communicating your vision to staff they will be more engaged and have a better understanding of the brand values, philosophy and vision.
5. Choose your franchisees wisely
Franchisees are an important factor when determining the level of success for the brand and ensuring you recruit the best and most suitable franchisees to represent the brand is a must. You need to select franchisees who will follow the system, replicate the original business in its entirety and keep the brand name and reputation intact.
You should be mindful that most entrepreneurs do not typically make for the best franchisees. I recommend looking for people who have passion, are driven to succeed in the industry and are willing to commit to the brand. They should also be capable of managing their time, staff and workload.