Business and Finance Entrepreneurship Tips and Advice

How to Start an Effective Franchise Business

The great thing about starting a business is that the opportunities are endless. Whether you want to run a local kiosk, or a large tech firm, it’s all within your reach. You could also expand your business to greater heights through franchising. Keep in mind the fact that starting a franchise isn’t a sure road to success. You need to apply the right principles to be successful. Sure, at some point the system kicks in, but it won’t do all the work. It’s in that vein that we’ve shared below some tips on how to start an effective franchise business.

1. Be organized.


Even for a non-franchise company, it can be tough to keep tabs on every aspect of the business. With a franchise business, there’s going to be a lot more work involved. With more than one ball up in the air, you’ll have to hunt down solutions to make your work easier. Even more, you need to ensure that all your teams across the board are aligned on tasks they need to carry out. That’s where goal setting frameworks like Objective and Key Results (OKR) come in.

For an effective OKR solution, Workboard can help. This is an enterprise software company that offers efficient OKR software to keep your entire workforce in alignment with common goals. They work with standard OKR first principles such as ‘Aspire and Inspire,’ outcome focus, and transparency. They equally offer a periodic plan to drive your business to the point of steady success. There’s also the inclusion of working sessions, coaching, and OKR and app enablement.

2. Finance your business.

You may have recorded a truckload of profit recently, but building a franchise from scratch is not a cheap venture. Seeing as you may not likely have the seed money to propel yourself to the top, it isn’t a bad idea to look for alternative financing. Borrowing from the bank is one option, but sometimes they’re a bit iffy about financing a smaller venture. With that in mind, it might be best to seek help from a loan broker like Franchise Lenders.

This loan broker offers lots of valuable information for small businesses, and franchises, in particular. They also offer a swift loan acquisition process and equally offer custom design programs that suit different business models and their respective goals. All in all, the Franchise Lender is well-known as a one-stop solution for virtually every kind of business loan there is. They also have a long list of franchisor clients to show for it.

3. Get the word out.


You may or may not already have a loyal customer base. That’s highly dependent on whether you’re expanding a business or building one from the ground up. Either way, you’ll have to ensure that people know what’s going on. Thankfully, nowadays, there are so many options when concerning publicity or marketing.

You can opt for social media coverage, as almost 49.03% of the world’s population is on social media. Tapping into that market is a sure way to ensure your franchise business gets the momentum it needs to soar. Nevertheless, think of social media as an appetizer. The main course lies in designing the best website.

This is when companies like Webolutions come in. This is a Denver based digital marketing company with tried and tested digital strategies to drive businesses to a new level. Since its establishment in 1994, the organization has taken great strides. Today, sporting a Webolutions website design is synonymous with success. Some of the services they offer include custom web design, website development, SEO services, brand strategy, web content development, and marketing, among an array of others. They equally employ up to date techniques and technologies to drive traffic in the right direction.

4. Choose the right product or service.

Do you know what business is at its core? It’s all about identifying a need and providing goods and services that meet it. Ask yourself, what need are you looking to meet? Before you even decide on what kind of franchise you want to run, it’s important to understand the consumer needs in the area.

Not only is this a thoughtful approach to business, but it’s also equally the one way you’re going to keep your business relevant. Don’t just open up another fast-food franchise or a departmental store. Spend time and resources on finding out what people really want because you can never go wrong with that.

5. Hire the right people.


Even when your business is simply a corner shop or kiosk, having the right employees can either make or break your venture. Expanding your business into a franchise is going to require dedicated employees that you can trust to run a tight ship, even in your absence. Every single person is important, but you’ve got to take care when it comes to hiring department managers.

You can’t be in more than one place at a time, so you’re going to need competent leadership on the ground while you oversee operations. Also, ensure that all team members have adequate training and certification if it’s needed. Franchising is a big step, but with the right employees, you’ll be able to brave whatever comes your way.

6. Look at the legal aspect.

Regardless of how much you know about the intricacies of business, you can’t fit it all in your head. You’re going to need legal advice every step of the way to get it right as you start your franchise business. First, there’s the Franchise Disclosure document you need to complete meticulously. The only way to get it right is to hire a well-versed attorney. Besides all the documentation, you’ll also need to do things like draw up a franchise agreement and protect your intellectual property. These are things you’re going to have a hard time doing well if you don’t have a reasonable attorney by your side.

7. Location, Location, Location


Much like picking a good or service to offer up, choosing the right location is a big part of succeeding as a franchise owner. Let’s put it this way. If the people around your store/office/restaurant (you name it) don’t need what you’re offering up, you’ll be losing out on the easiest market to tap into.

First, opt for an area that already has good traffic—one that fits in with your target market. Then look into the consumer habits of the people around your prospective location. That way, you’ll be able to tap into major factors like loyalty and foot traffic.

Also, consider your commute. The location must be close enough to your home. This way, you can run your business swiftly without blowing all your profits on transportation.

8. Give your franchisees the support they need.

For the most part, a franchise is a network, and each part of the network needs to thrive for mutual benefit. With that in mind, it’s essential to give your franchisees support from the get-go. Set up avenues for communication and be accessible, because if they lose, you best believe you’ll lose too. Also, endeavor to see them through tough times and offer encouragement and celebration when they succeed. Your franchise colleagues may not be related to you, but until they cease to be your franchisees, they’re an extension of your family.

Starting a franchise business can seem daunting, but with the right experts and planning on your side, you’ll have your best shot at making it work.

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