A franchise is an excellent way to get into a competitive business line. It is because you get to use an already existing brand that has already created its niche in the market, so you do not start from scratch. Many people opt to start up their business in this way. For instance, in New Zealand, there are over 35,000 franchises in the country. The franchisor usually provides basic rules and guidelines on how the business chain is run to protect the brand name. Still, ultimately, the franchise owner has to be active in running and making the business successful. Running your franchise under the umbrella of a big successful business does not necessarily translate to the success of your enterprise. Here are essential tips to help save your franchise from sinking:
1. Have good enough starting capital
When starting up any business, it is wise to research widely. It gets to know how much money you need to start up the company and how long it may take before the business can be stable enough to cater to all its expenses and run properly. You need to find out how much time you need before starting to see some return on your investment. Salaries, wages and even rent for several months should be part of the startup capital for the business. It will ensure that the company does not start struggling with bills almost immediately it has opened up its doors.
2. Regular communication with the franchisor
For any given kind of relationship, good communication is a significant factor. Lack of communication leads to misunderstandings and broken relationships. As a franchise owner, you must regularly communicate with the brand owners. Get to explain your fears, what the business is facing compared to other similar companies. It would be nice to give your opinion on possible solutions and try to listen to the brand owners, as they may have been in the business longer than you have and have gathered several survival tactics along the way. The franchisor should create clearly defined communication channels for everyone to have a chance to air out whatever issue that comes up in the running of the businesses.
3. Good quality of products
Customers hardly need to know that this outlet is a franchise and not a branch of the bigger brand. You can achieve this by maintaining a very high quality of products and customer service. For instance, in the food industry, ensure that you are using the same recipe and procedures to develop products similar to those offered by other franchises. It creates uniformity. Customers will be sure that they are likely to get similar products and services whichever outlet they visit. Ensure that the staff are well-remunerated and are working in a conducive environment to achieve this.
4. Training programs for the franchise
In order to promote uniformity in goods and service delivery across all franchises, the franchisor can consider investing in training programs. All the franchises then attend the training and are given manuals for guidance on how to run the outlets.
As a franchise owner, always keep in mind that you are part of a larger group. Do not assume that you are alone and start doing things very differently from the others. You will likely lose out if you try this, as the franchisor already has a brand to protect.