Abiding by these tips has seen many franchisers earn reliable livings through good economic times and bad, while not following them has resulted in some franchisees failing.
- Run the shop yourself
- You need to manage-run your franchise outlet/s. You are unlikely to make it unless you are personally running the business on the shop floor.
- Take personal responsibility for the performance
- Do you plan to run the shop yourself? This is always my first question to any prospective franchisees.
- Get financial training
- Franchisers have a wonderful system to help you build a successful store, you need to supplement that with basic business skills of your own. If you don’t know accounting basics, or how to interpret financial documents, or for that matter how to hire and fire employees, you had better learn.
- Computer literacy training
- After financial training, a computer literacy course should be next on the list. Occasionally attend thought-provoking seminars, short courses at business schools and read voraciously.
- Customer service
- If you don’t like people, please don’t be in the food business. Communications skills are vital.
- Don’t buy a franchise just for money
- You can make a good living from running a franchise, but if making a lot of money is your primary motivation, you are unlikely to have the necessary passion for this industry.
- Take control
- For one to make money, you must have controls in place, without these; you will most likely fail, as people take advantage of you. You purchased a tried-and-tested system, now to be successful you need to learn and understand it.
- Always have a positive frame of mind
- It is important to have the right mental attitude always, to achieve your goals. Your attitude impacts on your performance, relationship and staff.
- Never stop marketing
- Above all else, the sales and marketing is also your responsibility.
- Financial expectations
- Some franchisers charges a 6% royalty, in exchange for which franchisees get various discounts that repay the royalty, but also give a higher turnover due to group marketing and consumer awareness.
