Britain’s leading franchisors, coaches and mentors gathered together for The HSBC Elite Franchise Top 10 Virtual Roadshow, giving tips, advice and guidance on what it takes to build a successful franchise.
Lara Morgan, investor and entrepreneur, led the main keynote speech for the evening, speaking about how to accelerate growth and build a lasting legacy with your franchise. If you want to own a franchise, make sure you are passionate about what you’re selling, Lara said. The beginning days of launching your franchise can be tough, and you may need to do a lot of the work yourself – so you it’s essential to love what you do and be willing to grow your business for the long-haul. “This is a proper considered investment decision, you shouldn’t be picking up the idea of doing a franchise if ultimately you’re not really passionate about running a business,” Lara added. “Around 65% of British businesses sadly go bankrupt in five years, and only around 1% of franchises going bankrupt doesn’t mean this is an absolute ticket to fun and happiness. This is graft. You are potentially going to be sweeping the floors and changing the loo paper, and taking out the rubbish. Your commitment level for whatever you’re going to do, and your investment in your self-awareness is a really good place to start… You really need to find that gut feeling that says I’m thoroughly excited and I have the sticking power to do a franchise, and I’m also prepared to get my hands dirty.”
Franchise owners need to have the skills to take their franchise to the next level and so, it’s important to pick franchises that are in line with your skill set. It’s not always possible to hire others to do the work for you from the get-go, therefore it’s essential you have the knowledge and skills to kick start your business – and sustain it. “Get some sales skills. In the end, this is your business, and you can’t expect anyone to hand value on a plate,” Lara said. “Employing the right people and you being in the right job for your skillset is going to be really critical to your survival.”
When starting a franchise, it’s important to understand the culture and values of the business you’re getting involved with. Lara has urged potential franchise owners to ask themselves if their chosen franchise aligns with their values, goals and vision – and to do more research before jumping the gun. “When I talk about getting your hands dirty, I ran a one-man band for two years and it was lonely and miserable,” Lara said. “The upside to franchises is, if you’re going to invest in a franchise, they are beholden to you to provide a customer service level that you need to reflect excitingly and infectiously on the customers that you want to win and serve. So, before you go into any franchise, you really need to ask yourself that question, ‘am I prepared to sit with these people, have I been to their head office?’, ‘Have I had a one-to-one to really understand their values and their culture and does that sit well with me?'”
Mindset is incredibly important when it comes to running a franchise and being your own boss, Lara said. You also need to ask yourself if you’re excited to be part of a team and have a passion for the franchise you’re building. It’s also essential to look into the franchise and find out about their support services, get references on your chosen business, and really do the ‘homework’ before taking a leap of faith.
“You are going to have to work like you have never worked before, and that takes some mindset,” Lara said. “So, you need to look after yourself, you need to declutter what you have in your life today, so you don’t take on too much. And then you need to be really passionate about being a part of a team within a franchise group because I believe the good franchises also listen very hard to the people that have invested in that brand. Look at the calibre of the brand, look at the consistency of the management you’re investing in. Look at how they’re providing support services… Let’s see what their reputation is, and let’s go and get some references around who these people are and do they say they’re going to do so that you can lower your risk. By doing your homework and taking references and being really clear about your passion, you can discover if this is a momentum you want to join.”
Businesses should incorporate sustainability into their business model and serve their community, essentially building a franchise that can grow and prosper while adding value to those around them. On a final note, Lara urged franchise owners to go with their ‘gut’, saying it has never failed her during her 30 years in business.
“Business has risk. Whilst you’re not buying a job (in franchising), there’s financial support like there has never been before,” Lara said. “We need more people appreciating that people matter, that you should invest sustainability into your growth and thinking, and you should be proud of what you do and perhaps what you’re bringing to your community. And you should go with your gut – and I make the best decisions that way.”
