So you recently bought a franchise to McDonalds, Starbucks, Subway, or any of the restaurant establishments out there that have a franchise business model now what? Seeing as how you sunk a lot of money into your new franchise, it makes sense that figuring out how to succeed be your first order of business. Here are 7 tips on how to make your franchise location succeed.
Do your Research and Learn From Your Competition
Before you set yourself on a marketing plan or anything like that, it’s important to look into franchising guides and start by familiarizing yourself with all the common issues that franchise face.
From there, study what other local businesses in the industry are doing and identify which strategies work and which ones don’t. A restaurant franchise in your neighborhood may be succeeding because they tailor their marketing strategies to suit the demographics they are serving, whether it’s young families, students, or older patrons. Studying your competitors can also tell you things, like what hours are unsafe for your business to remain open, which products/services are bestsellers, what specific risks like natural disasters or bad weather businesses should prepare for, etcetera.
Ace Your Grand Opening
A successful grand opening can give your business a good momentum. On the other hand, starting with a flop can make it an uphill battle for you and your new franchise. Plan every detail of your opening and prepare for every possible scenario. Allot at least two months of prep time and do a trial run weeks before the scheduled opening. A trial run should expose any potential problems you failed to foresee, and doing it weeks ahead can give you enough time to resolve these identified issues.
Promote Your Business
Right now, no one knows about your new business. It’s your job as the franchise owner to put it on the map. Local advertising strategies include flyers, ads on the yellow pages, newspapers, and radio stations, hiring a sign spinner, renting an airplane banner, and so on. You’ll want to expand to neighboring cities and towns, and that’s where online advertising channels come in. Building your own website, Facebook ads, and Instagram posts are all effective strategies that can get widespread attention for your business.
Handle the Money
Cash flow is especially vital for a young business. You’ll be cash-strapped the first few months as you pay off franchising fees and operational expenses while also dealing with the fact that you have yet to establish a consistent flow of sales and profit. Know your breakeven point. If your franchise is cyclical, for instance, cash flow demands may change based on what time of the year it is. Look at your balance sheet and reduce as much of the debt as possible.
Recruit the Right People
Franchises, like any type of business, are built by people, but they can also be destroyed by the appointment of ineffective leaders and the wrong set of employees. Hire people who have industry experience. Don’t just hire based off of academic background. Field experience is a more reliable metric for gauging a candidate’s potential. There are some franchise brands that offer help with staff recruitment and training, so it’s worth checking with your parent company. Hiring locals is also a good way to earn a positive reputation within your business’ location. It shows that you are helping the neighborhood by providing jobs and income.
Build Your Local Network
Your connections with highly influential people in your area can help your franchise grow fast. Network with local politicians, non-profit organizations, government personnel, other business owners that compliment your business, etcetera. Show them the potential value of forming a professional partnership with you.
Protect Your Business
Depending on location, your business is exposed to a set of risks, such as unstable weather conditions, high crime rates, and geopolitical turmoil. Protect your business’ assets by having adequate insurance and putting up safety measures, such as security cameras around the business and having job candidates go through extensive background checks.
Final Thoughts
Buying into a franchise business is only the first step of the process. You’ll need to protect it and ensure its success to recoup your initial investment and, eventually, make a profit.
