Ten Keys to Franchisee Success

IN THIS CHAPTER

check Having enough money, discipline, and personal support

check Recruiting, retaining, and training your employees

check Serving your customers, community, and franchise

It isn’t easy to achieve success in any business. After all, it takes talent to make certain that your customers are always satisfied. If you have selected a great franchise system, your franchisor has given you the tools — but it left it up to you to get the job done. How you manage your business is critical. We have emphasized that fact throughout this book: If you don’t do it, no one is going to do it for you.

In this chapter, we offer you our list of the top things that may help your franchise experience be a success and (we hope) help you stay in front of the pack.

Make Sure You Have Enough Money

Do a personal assessment and make a plan. How much do you have to invest, how much are you willing to risk, and how much will you need to live on for at least the first 12 months that your new business is open?

Remember, you and your family have to live, and being able to have fun is something you should budget for. Emergencies, unfortunately, are also going to happen. Carefully review your personal finances with professionals so you know what you can afford to do.

Follow the System

You’re paying to join a system — follow it.

If you don't think you’ll be able to follow the system and believe you’ll be able to tinker with it by changing or adding products, modifying the advertising, and customizing the services, hours, and even quality and consistency standards prescribed by the franchisor — don’t make any franchise investment. If you need to be an entrepreneur and can’t be a formula entrepreneur, then franchising is likely not for you.

By following the franchisor’s system, you preserve the brand and protect your investment and those of your fellow franchisees, because you’re giving consumers what they expect.

Don’t Neglect Your Loved Ones

Running any business is hard work, and it can consume a lot of what used to be your family time. You’re on occasion going to be under pressure — some self-imposed and some imposed on you by your customers and your franchisor. You’re going to experience the natural fear of failure on occasion, and if you’re not prepared for that roller coaster, be aware that it can have an impact on your personal life. Be prepared.

You’re going to need the support and understanding of your loved ones, especially when the pressure is on. Don’t forget that they will share in your sacrifices too. Plan on setting aside time for just you and the important people in your life. If the only time you have for your kids is a quick bite with them at night, make sure that time is about them and not about your business. When they grow older and maybe join you in your work, there will be plenty of time to talk about business.

Be Enthusiastic

Your success is going to be linked to the level of enthusiasm you bring to your work. Show that enthusiasm to your management team and staff because enthusiasm is contagious. When you show a positive attitude to your relationship with your staff, it brings a level of excitement and energy to the entire operation that everyone, including your customers, will feel.

No matter how you feel, no matter what the problem is, no matter who you’re mad at, when you come to work, be enthusiastic and upbeat. You may be trying to fool only your staff and your customers, but if you keep it up long enough, you may even fool yourself.

Recruit the Best Talent and Treat Them with Respect

Having a great staff is essential, and attracting and retaining the best people is the key to success. Your job is to motivate them, train them, support them, reward them, and, when necessary, discipline them. Although your franchisor can train you on what to look for, only you can set your human resource policies and only you can manage your team.

Often paying more is the cheapest investment you can make when looking to recruit and retain the right people — especially when those people are going to make you successful.

We sometimes overlook workers that are more seasoned — those whose first career has ended and who still want to contribute and work. Seek out the senior citizens in your neighborhood. They generally are skilled, have a wonderful work ethic, and often can be role models for younger employees.

Seek out the physically and mentally challenged and find a place for them on your team. We’re not suggesting this as a “feel good” program. Some companies perceive problems in making needed accommodations, but in our experience those that do reach out to work with the physically and mentally challenged find it strengthens their business.

Ensure that your entire staff knows their jobs and are cross-trained when possible. Also, take care to communicate the terms of their employment, including pay structure, hours, benefits, holidays, and vacation policies. When possible, make work schedules available well in advance so that your employees can plan their personal lives.

Train Your Employees

You’re going to be investing in the best people possible, so make sure you train them well for their jobs. There’s simply nothing as frustrating to employees than being thrown into a job they don’t know how to do. The happiest employees are the ones who get proper training so that they can do a good job.

Training should be continuous because your staff is your front line, constantly meeting and greeting your customers. They are the ones you will be relying on to grow your business. Poorly trained staff will lead to dissatisfied customers.

Although your franchisor may give you training tools, it’s your responsibility to train your own employees. Providing your team with training is a good way to show your employees that they matter to you.

Give Customers Great Service

You invested in your franchise because it had a system to provide consistent products and services to consumers. In fact, even if you didn’t have a contractual obligation to follow your franchisor’s system and meet each of its brand standards, it still would be essential that you did. Respect your brand and make sure your staff is well groomed. Clean the bathrooms and treat your customers as if they are guests in your house.

In great franchise systems, the franchisor has established brand standards and provides its franchisees with the support needed to deliver its products and services consistently, regardless of location. This consistency is what customers expect and why they were attracted to your business in the first place. But more than delivering consistently, if you truly want to be successful, provide great service to your customers.

Get Involved with the Community

You should be as interested and involved in your community as a baby-kissing politician. Being part of the fabric of your community is essential because customers like to shop with their neighbors and especially at businesses that support them. We’re not talking about advertising — this is where marketing becomes important. See what your franchisor recommends and what has worked for other franchisees. You might consider doing the following:

Sponsor a Little League team, participate in civic organizations, and conduct tours of your business for school groups.
Start a nursing-home visitation program, set aside a day to give a portion of your proceeds to charity, set up a kiosk at community events (if your franchisor allows), and get together with other franchisees in the market and sponsor an event together.
Provide students who are getting good grades a discount or free products when they bring in their report cards.
Join and support your Better Business Bureau, Chamber of Commerce, Rotary Club, or other local community-based organizations.

Stay in Touch with Your Franchisor and Fellow Franchisees

Most franchisors invest heavily in communications about new product development, troubleshooting tips, employee relations, upcoming meetings and conventions, franchisee achievements, and other important news.

How they communicate is not that important, but you should seek opportunities to participate. Participate in each of the face-to-face opportunities, including training programs, field visits, conferences, and conventions. Take advantage of every opportunity to exchange information with your franchisor.

The International Franchise Association (IFA) holds local monthly meetings where you can network with franchisees and franchisors from other systems and get to know local franchise suppliers. These are great opportunities to learn what others that may not be involved in your franchise system are doing. You might even consider getting involved in your local Franchise Action Network (FAN). FAN is a grassroots effort to protect franchising from proposed laws that might negatively impact your business. Check out www.franchise.org and find out if FAN has a grassroots meeting in your community.

Pay Attention to the Details

Success is in the pennies. To run a successful business, you must minimize costs and maximize sales. Minimizing costs goes beyond cutting the best deal for your raw materials or inventory. Minimizing costs means you have to be diligent and carefully observe how your business operates day-to-day:

Watch out for your shrinkage, the merchandise that goes missing and unaccounted for due to employee theft, customer theft, vendor theft, or maybe simple bad management, inventory, and ordering procedures. Every time products disappear, are damaged, or are prepared but not sold, that’s money out of your pocket.
When you see a vendor improperly handling your delivery, bring it up immediately. The same thing goes for employees who aren’t handling products correctly.
Plan your labor. Look at any business: Some days are busier than others, and some hours during the day are busier than others. Learn how to schedule to meet your needs.
Work hard every day. Some days you may want to kick back just a little and coast, putting the business out of your mind for a while. We’re not recommending that you deprive yourself of breaks from the business, just that you choose your time away from the franchise wisely.