Do you have these key traits to succeed as a franchisee?
If you’re thinking about investing in a franchise system, there are 7 traits of a great franchisee.
1. You fit in with the culture
Most franchisors regard this is as an important attribute in a franchisee. From fast food to business services, most systems require a franchisee to have superior customer service skills. This includes the ability to relate to people and exude passion for the selected industry. You should also have an interest in the field you are looking to invest in.
This will make for a more natural fit within the culture of the business, which is in some cases more desirable than experience and technical skills which can be taught during the initial training period. Franchisees need to come across with the right attitude and demonstrate a value for the business they intend to buy into.
2. You’re financially prepared
Purchasing and operating a business is called an investment for a reason. For most franchise systems, and initial investment and ongoing royalties are required from the buyer. Some systems require a regular marketing fund too. This means you need to ensure you have enough funds for the initial cost plus working capital to meet your other financial obligations to the franchisor for their support and expertise.
It’s a good idea to be clear on where you stand with finance by obtaining professional advice from financial and legal experts as well as the Franchise Council of Australia (the peak body for the Australian franchising sector).
3. You know yourself
In order to succeed as a franchisee, you will need to understand your strengths and limitations. Running a business is hard work, and the franchisor will support you but cannot do it for you. Consider your experience and education, family situation, how much can you afford, and the expected return on investment (ROI) you are looking for.
Does your selected franchise fit in with these aspects of your life?
What kind of hours are you willing to put into the business?
You also need to be confident in the brand you eventually select and make sure the franchise model fits well with your expectations.
4. You’re self-motivated
Businesses can take time to get up and running and then into a position of profit, so the journey can be difficult at times. It can stretch you thin and take up a lot of your time to get a business on its feet. This is why it’s important to be self-motivated. Having a long term vision and goals can help keep you motivated in the early stages. You should be able to drive yourself and not need to be pushed. You are investing your time and money after all!
5. You’re resilient
In your franchise career you will face setbacks, challenges and tough times. These can be caused by many factors including keeping up with the costs of a business, or even downtime for the industry. A key staff member could leave or you may lose an important client. The franchisor could make a decision that negatively impacts your business, or a competitor could open up next door. It’s important to have a resilient character to withstand these possibilities.
6. You can follow a system
A franchise is very different from starting up your own business. Whilst a franchise system provides you with backing from a reputable brand and the franchisor’s experience and connections, it doesn’t necessarily mean you can be an entrepreneur. A franchise model comes with a proven system designed to be followed.
7. You have great communication skills
In many ways, the franchisor/franchisee relationship is like a marriage. Good communication and a strong relationship between the two is required for success. It is also important for franchisees to communicate well in order to nurture relationships with suppliers and staff members as they too play a part in your success.