Unfortunately, there's no magic potion you can create to guarantee the franchise you buy will be a big hit. But you can learn a few tricks of the trade and master the major elements that give a new franchise the strength it needs to thrive. We asked franchising insiders to share the bare essentials for being a successful franchisee in this unique economic climate.As more and more people decide to seriously look into the idea of becoming franchisees, one of the key questions they ask is "What can I do to prepare myself, to get as ready as possible, to become a successful franchisee?" The good news is, there's a lot you can do to make this a wonderful experience. Here are the three secrets to franchise success.
Cash Is Still King :-
To make money, you need to spend money...or at least have a little. While purse strings are tightening, franchisees still need to find the funds to maintain and grow their businesses. "They have to be funded. They can't go into this on a shoestring; if they do, today's economy will not allow them to succeed," says Jerry Wilkerson, president and founder of Franchise Recruiters Ltd., a Chicago-based franchise executive search firm. "There are going to be peaks and valleys like we've never seen before.
Get the Word Out :-
To put it bluntly, without customers you have no business. So making the right customer base aware of your business is key. But if they don't have the resources for the traditional massive media campaigns, today's franchisees have to find new creative, inexpensive methods to reach their markets. "Franchisees must understand exactly where their customers are coming from and aim their efforts toward those neighborhoods, office buildings, hospitals or colleges. They need to be very efficient with their marketing dollars," says Mark Kaplan, chair of Great Wraps Inc., a wrap-sandwich franchise. "Right now, with things the way they are, it would be a sin to be inefficient with marketing dollars and marketing effort."
Best Supporting Role :-
One of the major benefits of joining a franchise is that the franchisor provides you with a tested and proven operating system. While it seems obvious, following the system the franchisor has put in place is essential for a franchisee's success. That's even truer in 2003. "The more you fail to execute those key elements, the more adversely it affects your business," says Robert Tunmire, president of Glass Doctor, a glass replacement franchise. "Because of the complexity of business today, you really have to be [following the system]. In the current environment, there's no margin for error."
Know Thyself :-
As important as maintaining the expectations of the franchisor is understanding exactly what you want from the franchise. This is a timeless truth--no matter what the state of the economy. "To be a successful franchisee, you should always have very clearly defined personal goals," Tunmire says. "A business is simply a vehicle to help you achieve the quality of life you want, and that has to start with fully understanding what you really want."
Remember to run the business
Many potential franchisees make the mistake of thinking they're limited to buying a franchise in their current field. In fact, this might be the worst way to go.Some franchises will not allow someone skilled in a particular industry to buy a franchise in that industry. For example, a mechanic may not be allowed to purchase an auto repair franchise.
Contact current and former franchisees :-
The best way to find out if a franchise is right for you is to go behind the scenes and ask a lot of questions.Before making a buying decision, prepare a list of questions. Contact at least five current franchisees and make an appointment to discuss your interest in the business. Whatever else you discuss, be sure to ask the questions you prepared.Try to arrange an all day job shadow session with at least two current franchisees. This will allow you to observe the daily operations of your potential future business without committing to personal financial risk.
Go it alone :-
Business partnerships are appealing on the surface because the idea of splitting costs, liability and workload is tempting. But it's nearly impossible for any two individuals to work together as much as necessary to launch a new business without problems developing.If it is a financial necessity to form a partnership in order to purchase your franchise, it's crucial to define the roles each partner will play well in advance.
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