Becoming a franchise owner is a daunting financial decision. However, owning a franchise can also be one of the most rewarding things that you can do in your life, especially if you’re looking for a stable income stream. For one, franchise owners don’t have to start their business from scratch and avoid the pitfalls of being a new entrepreneur. In addition, having a franchise means that a big company is always there to back you up, provide support when you need it, and guide you towards success.
In this post, let’s discuss how you can further secure the success of your franchise.
Anticipate the challenges
Opening a franchise is appealing to lots of people as most of the business elements are ready to go right out of the box. However, that’s not an assurance that your franchise business won’t run into any problems. For this reason, it’s important to be aware of the possible challenges that you might face as a franchisee. One common challenge that many franchisees encounter is not being able to get it off the ground. To remedy this, you should dedicate an incredible amount of your time researching your target market and restructuring your business strategy.
Another big hurdle for franchise owners is feeling as if they have no autonomy. While owning a franchise allows you to be your own boss and be independent, some huge business decisions can still be made for you by your franchisor. To overcome this, you should remember that franchising companies also want you to succeed, so try to trust them and do your best to work within the rules that they’ve set. You will encounter more challenges as your franchise journey progresses. But by being prepared, you can minimize the damage that these challenges will do to your business venture.
Ensure that your working capital is enough
A huge reason why many franchise businesses go under is due to inadequate working capital. Even with a robust business strategy, you will find it hard to steer your franchise business towards success if you don’t have the funds. Because of this, you should make sure that your franchise’s working capital is enough to keep it running for the first few years. Your working capital can be computed by subtracting your current liabilities from your current assets. Through using accounting software, you can easily compute how much working capital you’ll need to keep your franchise business up and running.
When it comes to running a franchise business, you should always remember to never underestimate the costs. You should be quick to alter your business strategy in order to adapt to today’s market, so be sure that you have enough working capital to support your business operations, marketing campaigns, and key infrastructures.
Hire a franchise manager
Investing in a franchise business is one thing, but actively managing the franchise business — along with the staff, operations, and daily tasks — is another. If you want to keep your franchise business running smoothly, you should hire a franchise manager. Aside from overseeing the day-to-day operation of your business, a franchise manager is also tasked with managing your staff and looking after quality control.
When hiring a franchise manager, make sure that they have a good work and educational background. It’s also ideal to hire a franchise manager who has an ACBSP-accredited degree in business administration. Graduates of business administration degree programs are trained to develop their management and marketing skills with a foundation based on economics, accounting, statistics, and business law. In addition, they are also equipped with business leadership traits such as good communication skills, empathy, and forthrightness.
An opinion piece on Entrepreneur points out that franchise owners should learn to pick their own battles to avoid getting overwhelmed and be the cause of their business venture’s demise. So if you want to secure the success of your franchise, you should expect certain challenges to come your way, have enough working capital, and employ a trustworthy franchise manager if you want to put your best foot forward.
Exclusively written for IslandFinPoke.com
By: Rayssa Jarica