do franchise owners want to succeed

Becoming a franchise owner is an amazing, life-changing opportunity that requires discipline, leadership, and commitment if you want to succeed. You’ll also need money and outside help to make your franchise dream a reality.

Full Answer

How to become a successful franchise owner?

Seeing yourself as an owner rather than an employee is very important to becoming a successful franchise owner. A business owner must focus on working on the business rather than in it. It is important to be able to delegate and manage instead of thinking of performing the function of the business.

Why franchise a business?

And it's typically soon after the lessons of business scalability are internalized that many business owners begin to develop franchise opportunities as a powerful method for expanding their enterprise. In short, to franchise a business is the ultimate form of scaling a company.

What should I look for when buying a franchise?

“It is best to know your marketing and sales strengths and focus on considering franchises that put those strengths to good use.” To be successful, running a business takes a lot of general business knowledge and abilities in areas such as accounting, employee relations, time management and customer service.

Should you buy a pizza franchise that you like?

Some franchise industry types would suggest that you find a pizza franchise that you like, and buy it. Don’t do it. I rarely suggest that tact when working with clients. Instead of focusing on your passions, focus on your skills. Also, make sure you focus on your unique personal traits.

What to do if people don't know your business exists?

How to get word out about your business?

What is Forbes Los Angeles?

Can you cut corners in a franchise?

Can you be successful if you buy a franchise?

Do business owners want to franchise?

Is franchising hard?

See 4 more

About this website

How to Start a Franchise in 10 Steps | incorporate.com

In a franchise, one business (called the franchisee) pays another (the franchisor) to use the franchisor’s business model and trademarks. The franchisor offers various kinds of assistance to the franchisee, such as training, support services, and advertising.

Why is it important to see yourself as an owner?

A business owner must focus on working on the business rather than in it. It is important to be able to delegate and manage instead of thinking of performing the function of the business. “Many people want to work in their previous ...

What is the first step in investing in a franchise?

If you’re thinking about investing in a franchise, the first step is assessing whether or not you would be a successful franchise owner.

How to book an appointment with FranNet?

To book an appointment, click the “Get Started” button on the upper right corner of this page or give us at a call at 512-329-2613.

Why is it important to own a franchise?

Because owning a business requires a lot of commitment and time, it’s important that your family is supportive . “While buying certain types of franchises can lead to a family-friendly lifestyle, it can take some extra time and effort up front that will impact your family to an extent,” says Cronk.

What are the skills needed to run a business?

Business Management Skills. To be successful, running a business takes a lot of general business knowledge and abilities in areas such as accounting, employee relations, time management and customer service.

Who owns Texas Southwest?

According to FranNet Texas Southwest owner, Merri Cronk , the skills it takes to make a franchise successful are different from what many people think. With that in mind, here are the top five skills a person must have to be a successful franchise owner.

Is it better to be a franchise owner or a franchisee?

So if you are good at following rules and systems, franchise ownership is an ideal fit for you and your chances of success will be much greater. To sum it up, being a franchise owner isn’t for everyone so it’s better to do a serious ...

Know yourself

Being honest with yourself, your consultant and the brands. Introspection is crucial to determining whether franchising is right for you, and what brand is the ideal fit.

Validate

Next, as you validate and speak to franchisees, keep in mind that everyone has different levels of skills, motivation and goals. Some people may be a better fit for a brand than you while others will not.

Focus on the system

Your goal is to assess what your performance will be based upon the support and systems the franchisor provides. That is THE important piece of information.

What to do if people don't know your business exists?

7. Focus On Customer Retention.

How to get word out about your business?

You'll want to use your marketing budget to get the word out about your business in every way you can, from social media advertising to direct mailers and billboards . You may have the best-run franchise in the world, but if people don't know your business exists, and especially if you don't have a brand name that the world recognizes (such as McDonald's or Burger King), they won't pay you a visit.

What is Forbes Los Angeles?

Forbes Los Angeles Business Council is the foremost growth and networking organization for business owners in Greater Los Angeles. Do I qualify?

Can you cut corners in a franchise?

You can't cut corners in any franchise or in any industry. Even getting the little things right, like finding a consistently friendly receptionist, is very important. Customer reviews on Yelp and other social media sites can make or break a business.

Can you be successful if you buy a franchise?

But obviously, just because you buy a franchise doesn't mean you'll be successful.

Do business owners want to franchise?

Many business owners want to run a franchise, and for good reason. You have your own business, but you're also buying a business system — one that you know works. Instead of starting a business that could bomb in a few months or years, you're buying a business that has worked elsewhere and presumably will work in your community.

Is franchising hard?

We all know that franchising is hard, and it's important to do your due diligence and so on. But still, you don't know what you don't know. Your community may not have enough people that fit the target demographic to support whatever franchise you're interested in. Or maybe there are too many restaurants or automobile service garages or whatever you're thinking of buying.

Why are scalable businesses important?

But why all this focus on scalability and local management? In a nutshell, scalable businesses typically yield faster growth and higher profitability and therefore command greater valuations when the companies are sold. This is why technology companies (with their scalable platforms) and pharmaceutical businesses (with their amazing royalty / licensing revenue streams) often garner such high valuations (think Groupon S-1 filing and the recent IPO of professional social networking website LinkedIn ). In franchise mergers and acquisitions, a similar force is at work, as franchise systems are typically valued at 8-10 times EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization)which, when compared to a company in the 3-5 times range, puts a significant premium on their scaled systems. The reasoning behind this is that new revenue and the ability to grow quickly is much larger through an independently owned distribution model, where the power of the franchise systems and the franchisee network can be combined to drive efficient, lean operations and bully suppliers into offering lower raw material costs, while local owners (franchisees) can tend to the particular needs of their own business. Local operators who have their own capital invested manage locations more profitably (e.g., McDonald's franchisees average 20% higher profitability than company-owned locations). Franchisees also provide investment capital needed to open new locations while keeping the debt structure of the franchisor leaner and more manageable.

What was the Tilted Kilt case?

In the Tilted Kilt case, the franchisor allegedly published an “employee handbook” for franchisees to distribute to their staff, and exerted significant control over the operation of the franchised outlet in question. If true, these are two factors that typically weigh in favor of finding the franchisor to be a “joint employer” with its franchisee, thereby potentially subjecting it to liability for the alleged harassment.

Is franchising scalable?

The beauty of franchising is that it allows businesses that are typically not scalable to become scalable. The restaurant industry is a great example. With the operational and financial commitments that come with each new location, restaurant owners tend to get sucked in deeper and deeper into the operating requirements of running each new unit. Restaurant franchises have overcome this challenge, however, by leveraging standardized business systems and putting owner operators in place to manage the day-to-day operations of each unit, thereby converting the restaurant model into a nationally (and even internationally) scalable business.

Is franchising a good idea?

Franchising is perhaps the most powerful recipe for scalability in all the business world. For most entrepreneurs, however, when they first launch a new company, the prospect of franchising their business may seem like a far-off and largely irrelevant concept. After all, as a new business owner, it can be difficult enough just keeping up with the day-to-day administrative and operational grind of the business, let alone thinking about how to develop, refine and replicate a model on a national (or even international) scale. Indeed, as the popular book The E-Myth describes: Business leaders get so caught up in mastering their daily operations that they become unable to dedicate adequate time to growing their business to its true potential.

Is franchising a duplication of an existing business model?

Franchising is a duplication of an existing business model; it doesn't fix broken businesses or solve flaws in operating systems. For any business owner wondering how to franchise their business, it's important to be realistic about your operations and recognize that franchising will replicate both the positive aspects and the problems of any particular business model. However, if you have the right model in place and the market makes sense, franchising can be one of the most powerful expansion models on the planet.

Is franchise a business?

In short, to franchise a business is the ultimate form of scaling a company. It's the most leveraged and most powerful form of scaling an operation ever developed. Of course, developing a successful franchise system isn't as simple as training sales people or employees to succeed within a single organizations: the skill and mindset needed to train a franchisee to operate an entire organization on his or her own requires another level of skill and patience.

Who is Christopher Conner?

Christopher Conner is the founder and president of Franchise Marketing Systems, which is a full service franchise development and franchise marketing firm. The organization works with businesses to launch new franchise systems and sell franchises for existing franchisors, and has sold over 200 franchises for clients.

What to do if people don't know your business exists?

7. Focus On Customer Retention.

How to get word out about your business?

You'll want to use your marketing budget to get the word out about your business in every way you can, from social media advertising to direct mailers and billboards . You may have the best-run franchise in the world, but if people don't know your business exists, and especially if you don't have a brand name that the world recognizes (such as McDonald's or Burger King), they won't pay you a visit.

What is Forbes Los Angeles?

Forbes Los Angeles Business Council is the foremost growth and networking organization for business owners in Greater Los Angeles. Do I qualify?

Can you cut corners in a franchise?

You can't cut corners in any franchise or in any industry. Even getting the little things right, like finding a consistently friendly receptionist, is very important. Customer reviews on Yelp and other social media sites can make or break a business.

Can you be successful if you buy a franchise?

But obviously, just because you buy a franchise doesn't mean you'll be successful.

Do business owners want to franchise?

Many business owners want to run a franchise, and for good reason. You have your own business, but you're also buying a business system — one that you know works. Instead of starting a business that could bomb in a few months or years, you're buying a business that has worked elsewhere and presumably will work in your community.

Is franchising hard?

We all know that franchising is hard, and it's important to do your due diligence and so on. But still, you don't know what you don't know. Your community may not have enough people that fit the target demographic to support whatever franchise you're interested in. Or maybe there are too many restaurants or automobile service garages or whatever you're thinking of buying.

Varying Degrees of Franchisee Success

• Consider that franchisees fall into 3 groups of mountain climbers: The first group consists of folks who are on the wrong mountain.If you are on the wrong mountain, you will never achieve the vistas or summit that you hope for. These franchisees are a bad match for the concept. They lack the skills, financial wherewithal, or time to excel with the ...

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Know Yourself

Validate

Focus on The System