While the immediate brand recognition of operating a franchise can get customers in the door, franchise owners need to be sure that they are operating their businesses properly to ensure their success. Merely opening a string of franchises does not guarantee that you will make money. Philip Sobeck, an experienced franchise owner, details the ways that franchise owners can succeed, offering important tips to people who want to buy franchises for themselves.
Dedication to Customer Service
Franchise owners must be sure that their staff is taking proper care of their customers. Any lack of proper customer care will be talked about in the community, and customers will move away from that business and toward a location that better meets their needs. For example, if a fast food restaurant regularly gets orders wrong and has a surly and uncooperative staff, this will be a drain on the franchise owner’s profits.
Ways to achieve proper results in customer service can include incentives for the managers. Instituting survey systems for customers allows franchise owners to get feedback on their daily operations. This feedback should be taken seriously since patrons with strong opinions are far more likely to answer these surveys.
Focus and Determination
When a franchise owner opens a business, he or she must be completely dedicated to their success. Long days and late nights are part of the business. Philip Sobeck says that if franchise owners are looking for an easy side business, they are looking in the wrong place. Business owners must be ready to deal with any event and must be willing to keep trying until they succeed. Anyone without this level of focus and mental strength will not make a successful franchise owner.
Positive Thinking
Business owners need to have a positive frame of mind to get things done. Company culture starts at the top, and when the business owner is unhappy or dreads coming to work, employees and customers will sense it. Employees will perform poorly, and customers will be driven away from the location. Business owners, especially franchise owners, need to be able to handle the ups and downs of daily life. Not every day in business will be successful, but franchise owners need to be able to roll with the punches.
Mental Toughness
Far from being an easy money-making opportunity, franchise owners need to have a great level of personal strength and a sense of self-determination. These business owners need to have the ability to keep working under the most difficult conditions. For example, individual franchisees may have trouble with their cash flow or may experience problems relating to construction in their area. Franchise owners need to be ready to deal with all of these issues calmly and rationally. If franchisees cause trouble, the franchise owner must be prepared to get them out of business. Concentrating on the profitability of each branch makes sense, but customer service and community goodwill must also be taken into account.
Financial Stability
Without a solid financial base, it is impossible to invest in franchises. People must be aware that franchises may not make money for the first several years, and they must have financial reserves in place to meet these challenges. The franchise owner’s family often assumes significant financial risk. It may not be a bad idea for a spouse or other family member to keep a high-paying and stable job outside the franchise.
Mature Approach to Business
Franchise owners benefit from solid business experience in other areas. Young people may be too wrapped up in the attraction of making money and may not handle their businesses wisely. At the same time, business owners with young families at home may find it difficult to meet all of their obligations.
Success as a Franchise Owner
Philip Sobeck reminds potential franchise owners that the business is more than simply taking advantage of the business model passed down from the parent corporation. Franchise owners must also have focus, mental toughness, financial stability, and a mature approach to the business world. Franchising is a great opportunity for those who are prepared to put in the leg work and to dedicate their lives to quality and customer service.
