Becoming a franchisee can be the best way to own your own business without having to save or borrow a considerable amount of money. There are franchise fees and costs, of course, but typically these are lower than establishing a business of your own from the ground up. You will also receive help and support along the way from your franchisor and other franchisees.
Here are some of our top tips to help you succeed as a first-time franchise owner.
Choose the franchise wisely
It may help to do some research into the franchisors you are considering. It would help if you played to your strengths and choose a franchise that you are knowledgeable about and will enjoy. It may help to explore the pros and cons of each franchise to ensure you make the right decision.
Not all franchisors will offer the same level of aftercare and support throughout your time with them. As a first-time franchisee, the support of your franchisor can be invaluable. Before you sign anything, you should consider asking questions about the level of ongoing support you will receive and see if you are happy with it.
It is a good idea to find out the costs upfront as well. This should include any franchise fee, inventory and set up costs to ensure that you will have enough money to get yourself up and running.
Make use of the support provided
As mentioned above, many franchisors will provide you with support throughout the process. It is a good idea to use this support, as it will often put you in the best position for success. You may be offered a mentorship with another franchisee so you can get help and advice from someone who has previously been in a similar position to where you are now.
Ensure you are in a good financial position
It may help to go to an accountant or financial advisor before you make any commitments. They will be able to review your finances with an expert eye and give you a realistic picture of whether you can afford this.
When considering your finances, you should take the time to review why you are choosing to become a franchisee carefully. Deciding to become a franchisee should be done for the right reasons and only after careful consideration to ensure that you are making the right decision.
Take some business courses
If you have worked in a managerial role before, you will have many of the skills needed to run a franchise. It is still often a good idea to further develop your business skills to ensure you know all you need to be successful.
The financial side, in particular, may be quite different to any leadership role you have had before, and, of course, you will have a lot more responsibility. There are online finance courses you could consider taking that will give you an online finance certificate and help to prepare you for running your new franchise.
Know your franchise agreement inside out
It is helpful to read your franchise agreement thoroughly to understand all of the rules you will need to follow. Failure to follow the rules in your franchise agreement can lead to termination of the agreement or disappointing sales. This is one area in particular where franchising differs from business ownership, as there will be limits to the amount of creative control you will have over your business.
It is essential to consider this element of being a franchisee carefully. Many people choose to franchise to own their own business, not realizing that there is significant control from the franchisor over the business model and aesthetics.
Give back to the local community
Once you have decided on your franchise and got the agreement and funding settled, you will need to establish your franchise within the local community. A great way to do this is by hosting events and activities that will benefit the community as a whole.
You could consider partnering with a local charity and hosting a fundraiser at your premises or another type of project. Being active in the community will get your franchise noticed and bring customers to your doors.
Get on social media
Social media is a valuable tool to help businesses reach a massive audience of potential customers. Once you have established your franchise, you could consider creating your own branch’s social media profile. It may help to invest in targeted ads for your social media strategy, but you should consider getting advice from your franchisor if you are unsure how best to do so.
Final thoughts
Becoming a franchise owner can be an advantageous career step. You will have much of the freedom and flexibility that comes with operating a business, along with support and help from your franchisor. It is essential to do your homework when choosing a franchise and ensure that the one you select suits you and your skillset.
