Franchises have proven wildly successful across America and the rest of the world, and their growth rate continues to increase. However, franchises should not be confused with other small businesses; while there are obvious similarities, there are also a variety of traits that are more important for franchises. Here are three such examples.
Experience is one of the traits the top franchises have in common. Having experienced operators and staff is important for any business. But when it comes to a franchise, you need a different kind of experience. It’s critical to have someone on board who understands the ins and outs of a franchise system, their policies and procedures, how to interact with upper management and more.
At the same time, in addition to a franchising expert, you need someone who knows how to run a business and who is an expert in the industry in which you are franchising. If this isn’t you, make sure you hire someone who knows this field and can work with you to ensure your business’ success.
Business growth is important everywhere, but the growth rate of franchises is particularly important. Franchises have certain expectations of their franchisees, and a consistent growth rate is usually one of those requirements. Growing at a regular rate can bring additional resources and opportunities; conversely, failure to grow at an expected rate can bring additional scrutiny from upper management.
A franchise can be successful if it keeps open in just one location; however, real success can be found in owners who open multiple locations. Doing so will expand your business, your customer reach and your overall profit margins. The good news is that most franchises are already set up to be easy to scale.
Good communication is a cornerstone of any successful business, but this goes double for franchises. Communication skills are required with customers and other staffers, but franchises require an entirely different level of communication because you have to discuss your plans and operations with area managers and franchise management. As such, you have to be prepared to communicate your overall business plans, marketing decisions, human-resource moves and more. You also must be ready to accept advice and directives from your home office.
Success is not a guarantee in any business, but franchising has unique challenges and opportunities. Any franchise business owner must master the above traits to succeed. Do that, and you will be well on your way toward long-term franchise success.
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