Owning a franchise is a great way to dive into the pool of entrepreneurship. You’ll enjoy the structure and feel of a small business while benefiting from the recognition and trust of an established regional or national brand. In this article, we’re sharing tips for new franchise owners so you can build a strong foundation for future growth.
10 Tips for New Franchise Owners
These tips for new franchise owners cover everything from high-level planning to the fine details of operation. They’ll help you establish your new business and guide you on what you should pay attention to as you grow.
1. Know Your Market
We start our list of tips for new franchise owners with a reminder about the importance of knowing your market. Spend time learning about the franchise and, if possible, talk to other franchisees who have already established their businesses. Also, conduct market research to understand the market in your local community and how you can best serve it. Keep in mind that this kind of research isn’t ‘one and done.’ You’ll want to review the market regularly to stay on top of trends and changes that will impact your sales.
2. Know the Brand
And follow the system! The system is the secret shortcut to success as your brand is one of the most significant assets to help your new franchise business succeed. After all, customers have already grown to know and love the brand, so recognition and trust alone will get customers through your doors. Changing things like services, hours, or advertising without the franchisor’s permission could put you in jeopardy of having the franchise terminated. Know the brand and the terms of your franchise agreement. By preserving the brand, you are protecting your investment and the investments of your fellow franchisees. If you have an idea you feel would benefit your franchise location, share it with your franchise home office or advisory council – you may just have an idea that other franchisees want to adopt as well!
3. Know Yourself
As a franchise owner, you must perform a wide range of roles and functions. Managing them is crucial to success, but that doesn’t mean you have to do all the work yourself. Evaluate your skillset and interests to see which responsibilities you should keep and which you should delegate. For example, if selling isn’t your thing, you’ll want to recruit top talent to do the selling so you can focus on the areas that are your strong suit. Knowing yourself is one of the top tips for new franchise owners because self-awareness will significantly impact how the business runs.
4. Leverage the Franchise Network
The franchisor knows how to make your business succeed, and so do the long-term franchisees. Take advantage of any resources, training, and advice they have to help you on your journey. While you may be able to add your unique spin on specific aspects of the business (as allowed by the franchise agreement), the extent to which you can replicate their systems and processes will largely determine your success. Thus, lean on the franchisor for help wherever you need it, and maintain ongoing communication.
5. Focus on Hiring and Training
Finding the right people and equipping them with the knowledge and skills to succeed will make running your franchise much easier. Once again, you want to leverage any materials the franchisor offers, including hiring materials, training programs, and onboarding materials. From precise job descriptions to detailed job training, clear communication will set your employees up for success. Also, remember that you can train skills, but not attitude. Hiring people who have a good attitude and fit your franchise’s profile is a winning formula.
6. Manage Company Culture
Positive company culture starts from the top down. The enthusiasm and respect you show for your team will help you create a positive workplace culture for your employees and help you retain good workers. It starts with trust, and it involves actively creating the culture you’d like to see:
- Define what the ideal workplace culture would be for your business.
- Communicate this idea with your team.
- Set clear expectations and goals.
- Give feedback regularly, including recognizing and rewarding good work.
7. Prioritize Customer Service
Hubspot research found that 93 percent of customers were more likely to be repeat customers at businesses with excellent customer service. Therefore, prioritizing customer service can help you gain happy, loyal customers that will help your business grow.
Of course, customer service is related to some of our other tips for new franchise owners. Good customer service starts with hiring the right people and providing a robust customer service training plan covering everything from taking orders to handling irate customers. It also includes setting a positive company culture because where employees feel respected, they radiate that respect to customers. Having systems in place is another vital aspect because systems will ensure that customers get a consistent product and experience every time.
8. Get the Right Technology
The right technology can help your franchise business thrive. Some franchisors will recommend or require technology that has already been proven to help you succeed. If your franchisor does not offer specific technology, it’s up to you to evaluate your options.
- You can improve your payment system by choosing a top-notch POS system that manages payments and inventory and keeps track of sales.
- You can level up your customer service with a cloud phone system that integrates with your POS and allows you to monitor calls and train employees.
- You can boost your marketing with CRM and email marketing systems that allow you to connect with and keep track of customers.
As you evaluate your options, make sure to choose technology that will meet the needs of your business now and in the future as you grow. Since technology is vital to your bottom line, you’ll also want to find technology partners who offer training, dedicated account managers, and 24/7/365 support. You can also access resources such as the IFA (International Franchise Association) who have a list of leading technology providers as part of their supplier forum that specializes in the technology you may need.
9. Always Be Marketing
Your franchisor should provide marketing materials and directives that market your brand, but it’s up to you as the franchise business owner to put them into action. Remember that sales and marketing go hand in hand; if you want to grow sales and your business, never stop marketing!
Build your online presence, especially your local online presence, since 97 percent of people learn about local businesses through online search. Experiment with other popular forms of marketing, including social media, SEO, PPC ads, and direct mail. Also, look for new and creative ways to boost your marketing reach. For example, did you know that a cloud phone system can enable you to include marketing messages before you answer or while a caller is on hold?
10. Get Involved in the Community
Customers love to shop at businesses that support the local community. Consider sponsoring a Little League team, supporting a youth group, offering tours of your business for school groups, or setting up a kiosk at community events. Donating your time, money, or services will make potential customers aware of your presence and demonstrate that you care about the local community.
Tips for New Franchise Owners: A Final Word
There you have it: ten tips for new franchise owners that will get your franchise business off to a successful start! From employees to customers and marketing to technology, these essentials will help you lay a firm foundation in your business.
That said, these tips for new franchise owners do not become ‘irrelevant’ after you’ve been in business for a few years. Stay focused on these ten principles throughout the lifespan of your business, and you are sure to watch it grow.