Having invested in a franchise business, the next step is to ensure that your business is a success. This means getting the business off to a good start.
There is no easy way to do this, however there are many elements to consider, which when combined, work well to generate success for you.
Five top tips for running a successful franchise are outlined below:
Get a good business plan
Working with your franchisor and an accountant, compile a detailed business plan based around the specifics of your business, including site size, customer demographics of the surrounding area, revenue streams and marketing activity. The business plan must be both flexible and realistic in terms of objectives and projected targets drawing on the franchisor’s experience.
For any company to succeed, the business plan must be regularly scrutinised, even when the business is well established, to ensure objectives are monitored and achieved and targets exceeded.
Make the most of your training
Before you open the doors to your franchise, your franchisor will offer you extensive training. Ensure you get the most from your training by absorbing all information provided, asking plenty of questions and shadowing experienced employees.
Cash flow is king
A crucial element of all businesses is cash flow, and maintaining cash flow at a suitable level. Cash flow should be monitored on a daily basis as this will help you remain in line with projections as well as make decisions about your business.
For additional caution, a contingency fund is always useful should any issues arise, which can occur at any time, not just when you are starting out.
Recruit the best team
Your employees can be your greatest asset as well as a liability. When hiring staff, seek advice from your franchisor on how best to recruit for the various positions you need to fill.
Once you make the appointments, make sure contracts are put in place, employees are thoroughly trained and clearly set out the high standards you expect from them.
Good customer service is essential for all companies, and employees that deal with clients and customers in a professional, polite and helpful manner are assets to any business.
Regular appraisals are a must to review performance and career paths. It is also beneficial in certain industries to consider incentive schemes for top performing staff to aid morale and commitment.
Maximise you marketing activity
Boost your business by marketing it correctly. Most franchisors will have a dedicated marketing team who will be able to assist you with the marketing of your business, including local advertising, media, PR, design and point of sale material. These teams will also look after larger regional and national marketing campaigns promoting brand and service awareness.
Ensure that you carefully consider your key messages for local marketing campaigns and that you match these to your business objectives –promoting specific products or services, raising awareness of your new business or driving footfall. These must align to the franchise brand messages, values and styling. It is also useful to consider what your competitors do to promote their businesses as well as any of their campaigns which may have worked well.
It is essential that you communicate with your key audience regularly and evaluate the success of your campaigns to enable you to spend more efficiently on marketing in the future and maximise return on investment.
