One of the main agendas once you buy a company or a commercial business for sale is to know how you can be a responsible franchise owner. Purchasing a franchise or a small business can be quite challenging especially if it is your first time to do so. Being able to accept the responsibilities of your franchise will establish the strength of your business. That is why you have to set the goals and manage the ups and downs of your franchise business successfully.
Handle your finances well.
Understanding that you are an investor in your own business is the first function in your new endeavor. You don’t just pay the initial franchise fee but you also need to prepare yourself for other fees that would be very important to keep the business up and running. Check on your franchisor about ongoing royalty fees that you will have to pay. Handling your finances well, especially knowing where your profits go together with proper budgeting and financial analysis will go a long way.
Invest your time properly.
In a franchise business, you don’t just invest money. You also invest time. As a franchise owner, you must be hands-on so you will be able to see what is currently happening in your business and to foresee the circumstances ahead. Your franchisor usually offers training and ongoing support. Spending extra time learning the ins and outs of the franchise system will help you in the long run.
Take the initiative.
As the franchisee, you need to be able and willing to follow the standard system of your franchisor. Being proactive is one of the most important skills that you need to acquire especially in a franchise investment. You need to take the initiative to assume the leadership role and learn new and different skills for your business. Fulfilling the responsibilities in your franchise agreement will result in the success of the overall franchise system. Coming up with good and trendy ideas that will help the business flow smoothly is one way of being proactive and taking the initiative to make your business a success.
When you own a business or purchase a franchise for investment, you have to expect that you will most likely deal with customers on a daily basis – including addressing and resolving customer complaints.Read More
In the franchising world, you don’t just buy a company or a business for sale cross your fingers for success. You don’t just hire people and hope they will represent your brand correctly. You must also train your hires to provide the best possible service that your customers deserve. Before we go to the importance of this subject in your franchise investment, what exactly is Customer Service?
Customer Service is the heart of your business model. This is your relationship with your customers; this is what you offer before, during and after a service or a purchase. According to Investopedia, “Customer Service can take the form of a phone call, email, in-person interaction, self-service systems, or by other means.” This is not only for existing clients but also for potential new customers. Once your customers leave your store satisfied, they will be encouraged and inspired to come back and buy from your business again. Customer Service is your ticket to customer satisfaction to help your business grow potentially.
Now that you have a brief description of what customer service is, let me tell you how important it is to your business.
- Good customer service equals CUSTOMER LOYALTY. Do you want loyal customers? But of course! How do you get them? Easy. Just make sure that you got everything they need that’s relevant to your business once they enter your store. Remember, making your customers stay is way less expensive than acquiring new ones. Don’t risk losing a customer. Showing them your commitment and how you love doing business with them is the first step in gaining loyal customers.
- Good customer service equals a POSITIVE REPUTATION. The public perception of your franchise business will improve greatly once you are able to ensure your customers with high-quality service. The strength of your brand will depend on the quality of service that you provide your clients. If you make excellent customer service your top priority, this will result in positive reviews and will eventually be transmitted through word-of-mouth. This is the kind of advertising that no amount of money could buy. Isn’t it more reliable to heed a friend’s advice than to listen to online reviews or advertisements?
- Good customer service equals NEW PARTNERSHIPS. When other businesses see how well you take care of your customers, chances are they would gladly partner with you because you know very well how to handle your existing clients.
How should a franchise owner like you use the power of Social Media in this digital age?
More and more people are now “digitally inclined” and of course, as a franchisee, you do not want to be left behind. Though most of the businesses for sale in the United States use digital strategies to promote their products and services, it is never too late to think of your own ways on how to build an audience for your business to flourish. As your franchise business creates a great path to your financial independence, it is very important that your franchise stands out while ensuring the consistency of the brand that you purchased.
Here below are some of the techniques that you should learn and do to boost your marketing efforts for your franchise business:
- Create a website the modern way!
If your franchise contract allows you to have an independent website to promote the business, then go ahead and be creative! To make it consistent with the brand, use the same template but make sure that the content for every page is distinct. The contents must be engaging, allowing users to have a smooth experience while browsing your page. You would like to make your website user-friendly and entertaining at the same time, giving your audience the appetite to browse your website for more.
- Increase your Social Media presence!
Aside from Facebook, Twitter, Youtube and Instagram, where else can you promote your products? There are so many social media platforms to choose from and all you need to do is sign up. In today’s generation, social media is one of the best forms of advertising for your brand. This is where you build trust and encourage relationship with the brand that you promote. Do you know that you can promote your page and endorse your brand on Facebook depending on your budget? You’re welcome!
- Use content marketing for your blog!
According to Entrepreneur.com, “90% of organizations use Content Marketing and 82% of consumers feel more positive about a company after reading custom content”. With this study, you know very well that you could never go without content marketing.Read More
Every business, whether big or small, deals with challenges in the market at any given time. Even the most successful entrepreneur and those who just started a business, experience mistakes that somehow made them what they are today. Which means, not all businesses (even franchise businesses) are perfect! That’s why it is very important to know the skills that you need to be a successful entrepreneur and how to avoid the common mistakes especially when you start a franchise business.
Here are some mistakes that you need to avoid:
1. Not doing enough research.
Just because you were able to speak with your franchisor and your sales team and heard great stories about the franchise does not mean that you should invest right then and there. Doing the right research will save you a lot of money especially when you know what to expect about how you will profit with the franchise business and what is its potential longevity.
2. Committing too early.
They say, “Time is of the essence”. That’s correct, but in a franchise business, you need to have a large amount of time to get things through. Remember, this is an investment. What you decide will always affect the future of your business. Never underestimate the power of time.
3. Being satisfied with your franchise marketing.
I agree that one of the perks of buying a franchise is that you have the support of your franchisor to help you in the marketing side. But please, don’t settle for complacency! Think of other ways to market your business as this should be an ongoing effort.
4. Not asking for advice.
Going your own way can be risky in a franchise business. There are many franchisees who failed in this kind of business because they did not seek the advice of their fellow businessmen. A lot of experienced franchisees are willing to give you tips on how they managed their business and how they succeed. Yes, the franchisor’s system is a proven system but you can still avoid the mistakes of small business owners by seeking their advice. You just need to ask.
5. Straying from the business plan.
Never make assumptions. This is one of the biggest no-no’s in the franchise industry.
Don’t get me wrong, I like the Stock Market. Buying and selling stocks is a “no-hassle work” for some. I hope you won’t get a mistaken impression that this type of investment is just plain “picking” the right stocks. As the father of value investing, Benjamin Graham wrote, “”The real money in investing will have to be made – as most of it has been in the past – not out of buying and selling, but out of owning and holding securities, receiving interest and dividends, and benefiting from their long-term increase in value.” Yes, you read it right, long-term increase in value.
While we all could get something from investing in Stocks (after 10 or 15 years, maybe?), why not try investing in something where you do not have to wait for a decade or more? For me, there are other ways of earning a passive income – like investing in a franchise! Take a look at this example:
Maria invested $400,000 in the stock market. In her 10th year, she got a 5% average return which gave her $620,000. Maria can probably get 7% or even 8%, or maybe not.
Let’s see if Maria invested in a different method – franchising.
Maria invested $400,000 in a franchise investment with a proven business model with the ongoing support of her franchisor together with the rest of her franchise team. The franchise that she bought may give her an average return of 15% per year. Say that year 1 has been a breakeven year because Maria has just started her franchise business but she still earned $1,407,000 at the end of her 10th year.
Doesn’t it make a lot of sense? Of course, it does but not only in this aspect. Franchise investments offer you independence. Business experience is not a need too because your franchisor will give the training that you need to run the business.
This type of investment also has a higher rate of success as it already has an established reputation, ongoing support and training, proven track record and access to advertising. This is why franchising can beat the stock market!
Friend, I am sure you can find the best business opportunities in the United States. You can either buy a small business for sale or start something on your own.Read More