For many franchisees, the successful nature of their business depends on how well they manage to plan for the future. This includes implementing solid strategic business and financial plans. In order for the franchise business to be successful, it is important to concentrate on the daily activities of the business. Keep in mind the following points when you decide to invest in a franchise or business opportunity to ensure its long term success.
1. Recognise Your Strengths and Weaknesses
Recognising your strengths and weaknesses in relation to your franchise business will have a positive impact on your overall success. If you are great at organising but not so great at accounts, you should employing suitably qualified people to fill this gap in your skills.
2. Maintain Good Working Relationships
Establishing excellent communication links with your franchisor and other franchisees from the very beginning of your investment will prove beneficial to your success. Maintaining this type of relationship for the duration of the business start-up will be demanding at times; you will need to regularly attend all annual meetings and conferences, weekly and monthly coffee luncheons, and all other events organized by the franchise operation.
This keeps communication links open between franchisee and franchisor and, in the event of a problem, open discussions at annual franchise meetings will give you the opportunity to air your grievances. Maintaining a good working relationship will smooth over any tensions that may crop up as the business grows.
3. Listen to the Advice of the Franchisor
Some franchisees decide that they want to operate their franchise on their terms, and they tend to make business decisions that affect the franchise network in a negative way. Instead of a head strong approach to your franchise business, always listen to the advice of the franchisor when it comes to making important decisions. A franchisor will have many years' worth of experience running the franchise network and will have accepted or declined hundreds of potential franchisees. In other words, a franchisor knows his/her business inside and out and is the best person to approach for advice concerning your business operation. After all, the franchisor has seen it all before!
4. Monitor Cash Flow
One very important aspect relating to the successful operation of a franchise is to monitor and maintain the daily, monthly and yearly cash flow of the business. Calculating expenditure and income thoroughly will ensure you have enough cash resources for the future. You will be prepared for any financial payments you have not budgeted for in your business plan. Be careful not to under estimate your working capital that is required to run the day-to-day activities of the franchise. Problems with cash flow can be avoided with careful planning and monitoring.
5. Network
Effective networking is crucial to the long term success of your franchise business, and it can be easily achieved when you attend annual franchise conferences, meetings and luncheons. Meeting with other franchisees will give you the opportunity to express any problems or successes you may have with the franchise business. You can discuss these issues at networking functions where other franchisees will provide you with inspiration, motivation and a sense of community that will keep you going.
A franchisee should also consider networking in the local community. Local business owners can pool together a crucial clientele and customer base. Needless to say, your customers are vital to the success of your franchise, and maintaining good networking links with your consumers will increase brand loyalty, customer satisfaction and repeat business.
6. Strategic Planning and Time Management
Strategic planning and time management are two aspects many franchisees find a chore if they leave it too long to prepare. Every 6-12 months you should prepare a report of your business progress, aims and objectives, and how you will achieve your targets both professionally and financially.
Time management plays a central role in assessing and planning for the future success of the business, and you must be willing to incorporate both elements into your written plan or schedule for the 6-12 months. You have to allow for time flexibility and unexpected life events, and a well thought-out plan will account for just that.
Conclusion
The chances are that you decided to invest in a franchise in the first place because you wanted to enjoy being your own boss, having the option to schedule your own time, and to reap the rewards of your own hard work in the profits you make. All this said and done, you should have fun.
Following the steps outlined should help prepare you for minimising risks and maximising the chances of operating a successful franchise.