Franchise business success has some lessons to teach, only if we are ready to learn, understand and apply them. Here are some business principles to learn, gleaned from the wisdom of successful business franchising.
1. Choosing the right business model is critical
As a business-owner, having the appropriate business model for your business is critical to not just your initial, but continuous business success. Successful franchise owners know this and that’s why they can offer their businesses to others as a franchise to operate (franchisee). They understand that if their business does not provide a reliable return on investment (ROI) for the franchisee he/she will not continue the business. Consequently, this leads to business failure for them, at least as a franchise business.
2. The economics of scale reasoning
They consider the scale factor. That is the benefit of reducing costs because of having more outlets or franchisees offering the same product. Rather than go it all alone, they see the bigger picture of involving others, which opens up the business to other regions or areas thereby, reducing cost.
3. A well-motivated staff-force system
This means they put a system in place for staff that ensures employees are continually motivated to deliver well throughout the franchise. Regarding this, they provide employees with training and work tools to make them productive and successful on the job. Also, they address issues like educating employees on the need to sleep well for a more productive life. Getting it right with a well-motivated staff will ensure an increase in your ROI. This is because well-motivated employees will render wonderful service to a clientele that keeps on coming back for more.
4. Adequate funding is important
Having enough money for your business from the onset is key. This means understanding the financial requirement to run your business and knowing where to get financial help in the form of loans when necessary. Successful franchises know that much money is required to start and operate the franchise business and you should too. Be ready to acquire loan for your business. That is loans that will positively impact your ROI.
5. Always keep brand awareness in view
Successful franchises know what image they want their clients to have of them and keep preserving this brand image in their minds. They do this by continuing to project this image in the little and big things that they do. For example, in the way their coffee is served or in the ambiance their outfits, shops or locations project. Consequently, this or any deviation from this brand perception they know will adversely affect their return on investment (ROI).
Finally, any business owner that applies these lessons consistently will be rewarded with a growth in his/her business to the extent that becoming a full-fledged franchise business today is possible.