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Here’s How I Grew Five Businesses, and Eventually Sold One to a Fortune 500 Company.
6 Steps To Managing A Successful Franchise Business
Even after successful business expansions and launching several branches, entrepreneurs may still face obstacles. Some challenges could include lack of investment, higher capital demands, or management issues. And with that, business owners may consider expanding their business by franchising their products and services. Managing a successful franchise business can be a challenge, and we’re here to help.
With franchising, you could receive regular income in the form of royalties. You can also quickly establish your business brand in newer markets and boost their market share. As a result, you’ll be equipped to compete with top domain players with fewer resources, which could help the success of your business.
So, if you’re looking to explore franchising, here are steps to manage a successful franchise business to get you started:
- Conduct Franchise System Analysis
Essentially, franchise owners get to develop business ownership, which is why franchising is considered a popular option for people looking for a business to own. However, managing a franchise company requires building a brand and protecting its reputation with a clear record. Thus, it’s essential to conduct franchise system research to effectively manage your organization.
In addition, as a franchisor, you must also determine how much do franchise owners make and what responsibilities you would have. Once you research these questions, you’ll get to identify the overhead costs of operating a franchise business. These expenses would include equipment fees and costs, staffing salaries and benefits, and inventory and supply costs.
- Identify Your Business Goals
As a franchisor, you need to have a clear vision of what you want to achieve at every stage of your business. It’s crucial to have a vision statement that will serve as a guide whenever your franchisees encounter challenges. And without an end goal, you won’t have a defined path for your organization, which could set it up for failure.
For instance, one of the essential franchise business goals is reducing inventory wastage and overflow. And so, if you want to attain this vision, you must monitor and adapt to the existing customer flow to prevent inventory overflow. Once you do a calibration and make well-informed decisions, you’re likely to achieve your goal of having a zero-inventory oversupply in no time.
Another goal you must consider is maintaining a stellar business reputation. This is because by having a reputable image, you can easily retain your existing customers and attract more potential franchisees. And perhaps, one way to do this is by developing an active customer support system for better client management.
- Present Your Business to Potential Franchisees
After identifying your goals, you may now sell your franchise business model to your prospective franchisees. Ideally, a successful franchise presentation should highlight the critical aspects of the business opportunity, appealing to their business needs. With that said, you must focus on presenting your brand and how it can bring additional revenue to them.
Present a well-defined business plan with costs and timelines for every procedure, marketing, and training scheme. You could opt for graphs and visuals so your prospective franchisees can easily understand the benefits of partnering with your company. Effectively doing so may showcase your confidence in the implementation of your business plans and could motivate them to work with you.
Your presentation can also have illustrations of accurate figures showing how prospects can gravitate towards your brand over your competitors. You can consider outsourcing a professional editor specializing in franchise presentations to ensure their quality. Additionally, selecting the most appropriate venue to conduct this activity may help you gain a higher chance of getting your prospects to commit to your offer.
- Provide Hands-On Training
If you have a vision for your franchise business, your franchisees must share the same objectives with you. That said, you should provide hands-on training to bring the whole business network to the same goals and values. Whether it’s marketing, customer service, and operations, you must impart knowledge and proper training to make your teams more cohesive and productive.
With the recent technological innovation, you may collect ideas for training activities. As you choose the best ones, you may select videos during virtual sessions so you can teach the franchisee workforce. Alternatively, you may spend at least a week helping each team grasp valuable concepts if you’re conducting on-site training.
- Work On the Ground
Managing a franchise business can sometimes mean that you may have to use some time to work on the ground. As you witness, experience, and talk to your workforce, you get to learn about the obstacles your organization is facing. Moreover, you can develop the systems that you will need to drive higher growth and profitability, which could ensure the success of your organization.
As you work on the ground, you need to have regular communication with your franchisees so you can give them an insight into how you lead your team. This can encourage them to emulate your success and leadership skills. The discussions you have with your franchisees can also help you build trust between them and your company.
With that, you can encourage them to share their concerns with you as you provide support to their branches. And as a result, you can be assured that they’ll secure the quality of your products and services, which protects the reputation of your franchise business. Alternatively, you must also have weekly meetings with your regional managers so you can monitor your franchisees across different areas.
- Implement The Organizational Culture
As a franchise owner, one of your responsibilities is to establish a positive organizational culture from your franchisees to their staff. To start, you must hire the right people and provide them with the equipment they need to accomplish their tasks efficiently. Additionally, you should track and identify the progress of each trend so you can see to it that your team is sticking to a single vision.
You must also align everyone with your organizational goals by using the right leadership styles and principles. If your main objective is providing excellent customer service, you must communicate this goal effectively with your employees. Then, you may turn your company into a community that supports a valuable cause so you can sustain its good reputation in the marketplace.
As you implement the organizational culture, you can also influence the punctuality and service quality of your employees. When franchise workplace culture aligns with your workforce, they’re likely to feel supported and confident in their roles. As a result, their productivity may increase, contributing to an improved workflow, which can help ensure the success of your franchise business.
Key Takeaway on Your Franchise Business
As a business owner, it is crucial to find ways to expand the customer reach of your products and services. With that, you may consider creating a franchising system and looking for franchisees who will invest in your brand. Furthermore, consider following these six steps in managing a franchise business to ensure the success of your organization.