5 traits of top-line franchisees
For first-time entrepreneurs, franchising presents the opportunity to leverage the history and legacy of a tried and true method of operations with the guidance of an experience franchisor, greatly increasing the likelihood of success.
The model allows inexperienced business owners to achieve positive results and develop brand loyalty from day one, with the backing of a proven system of processes.
As a franchisee, your personal talents will be brought into play, and while certain industry and business-specific traits can be developed, your success hinges on a few characteristics.
Here’s five things that all successful franchisees embody.
The primary benefit of entering into a franchise model is the ability to trade with a reduced risk of failure, but that only happens when the franchisee commits to compliance, with respect to both the franchisor’s wishes and legislative requirements.
Franchisors have established operating methods, supply chain processes and customer service protocols for a reason, because they are efficient, and they work.
In order to maintain consistency across the network, every franchisee must commit to maintaining the standards of operation put forward in the franchise agreement.
Additionally, in whatever industry you operate, there will be legal requirements that govern the business, such as health and safety standards or necessary qualifications for employees.
Profitable franchisees must show a dedicated commitment to compliance across all operations standpoints, including payroll and recruitment, or risk facing harsh penalties.
Unlike independent operation, the franchising model provides on-going support and mentorship, cementing franchisees with a solid platform for success.
General manager of the Australian and New Zealand arm of global shipping and logistics franchise, InXpress, Marcel Lal said the ability to learn and take on advice is critical to the success of new franchisees.
“There is a common theme with all young InXpress franchisees, that they’re motivated, they’re focused and they’re very much coachable. When I say coachable, I mean that they are willing to learn even more and to apply those skills,” Lal said.
“It’s not just about learning, it’s about developing the techniques to and actually the practical application of the learning. It’s no good learning if you’re not able to actually apply it, so we have to teach people how to apply that.”
All franchisees must be willing to learn and develop their hard skills, focusing on improving the overall efficiency of their outlet.
3. Customer service
All franchise outlets will rely on some degree of customer service, regardless of industry or offering.
Franchisors increasingly look for franchisees who can not only satisfy customer expectations put provide a holistically positive consumer experience.
An outlet with exceptional customer service will improve its overall brand value, creating a consumer-centric culture that cultivates sales.
4. Financial Understanding
From the outset, successful franchisees tackle the financials head-on. While first-time business owners often struggle with financial documents in the beginning, those willing to develop their personal understanding, or seek advice from their franchisor will go far.
It is always a good idea to seek help from a franchise accountant prior to the business purchase, however, once the purchase is made, it would be wise to strengthen that relationship.
On-going consultations with a franchise accountant will allow you to better chart the current health of your franchise business, as well as uncover any discrepancies that may arise over the course of your operation.
5. Community focus
Despite having a big business mindset, franchising is after all, small business.
Franchisees who are personable, approachable and willing to contribute to the local community will develop a level of brand equity that can greatly improve business sales.
This may involve a number of outside initiatives, from sponsoring sporting events and engaging in council fundraisers, to something as simple as introducing yourself to your fellow local business owners.
Successful franchisees understand the value of community engagement and the role that word of mouth marketing plays in small communities.
Are you an ideal franchisee?
If you are considering starting a business, and have a firm vision of how you want things to be, franchising isn’t for you.
While franchisees are given the freedom to operate their own business with a high level of self-regulation, the reality is that you are buying into a set of ideals and processes that have been established to increase efficiency and financial return.
Franchisees that are open to coaching and willing to commit to compliance and professional development stand the best chance at prolonged success in the sector.
Are you a perfect fit for franchising?