If you’re one of the many who are in the beginning stages of opening your own business, you might be considering your options. One of those options may be whether or not you’d be successful at becoming a franchisee. If this is the case, there are several questions you must ask yourself before getting started. Of course, some are better candidates than others.
There’s a mindset that exists amongst potential franchisees that moving in this direction means they receive a ‘business-in-a-box’ so to speak. As if all the directions come with the toy, giving them a false sense of security. There’s much more to it than paying the fee and obtaining a loan from the bank. Let’s take a quick look at what qualities a successful franchisee must possess.
1) Give up the ego.
When you decide to start a franchise, it doesn’t matter how many years you have in the business or if you think you know more than your franchiser. Reality is, you are buying into their product and their system. Even though you get a stake in the success of the business, it still belongs to them, which means they make the rules of how it’s operated. To be a successful franchisee, you must consider if you’re okay doing things their way, even if it goes against what you think is the ‘right way’. If you don’t think you can handle that, it’s probably not for you.
2) Do you have a professional background?
A good franchisee candidate typically has a background in professional system-based work and performed well at what they did. It shows not only your professional nature, but that you have a high rate of success, even if you’ve had a disagreement with your boss. Those good in marketing, military veterans, and salesmen typically do well at becoming a franchisee.
3) Great at accepting feedback.
This goes along with number one. If you are good at following the rules and work well within a structured environment, you may be a good candidate. They do their best to refrain from conflict and don’t mind taking appropriate feedback to keep within the boundaries set by the franchiser.
4) Great hiring skills.
You are the most successful only when you surround yourself with the most qualified people for the job. Often times, franchisees only hire candidates that are just marginally qualified based upon the available capital. That may help the budget, but the system only works when the franchisees care as much about quality as they do quantity. Turning people down who aren’t quite right for the job helps the industry.
5) Knows how to market appropriately.
A lot of franchisees get too excited too soon. They set out to prove themselves and market too heavily without taking into consideration the fact that most don’t make a dime the first year. Odds are, you won’t be making money right off the bat, even under the most popular of brand umbrellas.
There are a lot of people who just aren’t right for becoming a franchisee. They jump right in without considering if they’re right for the job. It should be up to the franchiser to turn them down, but often they don’t choose the right candidate due to the financial windfall of franchising their business. If you stay smart with your money, know how to hire the right candidates, don’t overdo the marketing, and follow the rules well, you should be on your way to growing a successful business.
