Would you make a good franchisee?
Ever wondered whether you would make a good franchisee? Here The Franchise Magazine goes through desirable personality traits that typify an exemplary business owner in the UK franchise industry.
Franchisors always seek franchisees that are looking to run their businesses in a hands-on fashion. They must want to take advantage of that desire for business success. This desire cannot be matched by a salaried manager and this is why franchised operations will tend to offer greater quality of service and place more emphasis on customer satisfaction.
Franchisors are therefore seeking prospective franchisees that have a genuine enthusiasm for the industry in which they are investing. Enthusiasm is usually prized more highly than industry experience in franchising – the training should help overcome any discrepancy in this area.
When buying a franchise, you are investing in a proven and fine-tuned business blueprint. It is therefore important that you are willing to work within the confines of the franchisor's successful systems and procedures. This is because the franchisor has already gone through the trial and error development, learned how to avoid mistakes and performed the fine tuning in developing its business package on behalf of the franchisee. Franchising also standardises product offerings across a network. Deviating from the plan can cause rifts and discrepancies between branches.
A franchisee that comes to resent the authority of the franchisor is one that was never suited to becoming a franchise owner in the first place and these situations are easier to avoid than to remedy. If you are the type of entrepreneur that wants total control of your company’s image and direction, you may be better off considering other avenues of business ownership.
The decision to become self-employed involves a great deal of soul-searching. What prompts it can as often be the desire to escape employment as the drive to build a successful organisation. However, do not think for one moment that franchising is a way to cut down your working hours. With the future of your business in your own hands you won't be able to switch off at 5:00pm; you may find yourself working six days a week until well past this time in the initial stages. Franchisors realise this but, while many will offer plenty of support to help you get your business off the ground, they can't do it for you.
Franchises are often very affordable, with some superb opportunities are available for an initial investment of less than £15,000. Additional funding is readily available from the banks, where there is a great deal of recognition for the reduced risk inherent in franchising. Like you, many bank managers will be well aware of the survival rate of franchises compared with that of small businesses. Many banks have now set up specialist franchise departments and have developed relationships with franchise brands seeking to assist their franchisees in winning loans.
The income derived from owning your own business will prove much more irregular than that which is earned through employment. There is no pension or sick pay – except that which you set up for yourself – and much of what the business does earn may be required for reinvestment as you grow your operation. Can you deal with this insecurity and are you able to support yourself through it until your business start-up finds its feet? Many franchisors will help you develop your business plan, but it will take determination on your part to see it through.
Skilled in Business Management
As your business grows, you will need to take on and lead staff. Franchisors will deal with management skills during the initial franchise owner training programme, but there are many that are reliant on your own personal abilities. While many franchisors point out the diversity of the backgrounds of its franchise owners, they still require candidates with communication/people skills.
These skills are not only useful in dealing with staff, they help in dealing with clients as well. As with any business start-up, a franchise owner will have to fulfil a number of roles; that of manager, salesperson, entrepreneur, administrator and worker. An understanding of people and the ability to win confidence are vital for building a successful business.
Starting your own business is taking a big risk. Buying a franchise reduces the risk. Ideally, you want to minimise risk as much as possible, therefore you should choose a strong franchise system with a proven track record. If you love to take big, bold risks, then franchising may not be for you. If you are careful and thorough in your franchise research so you know just what you are signing up for, then you have the knowledge to succeed as a franchise owner.
Is Franchising Right for you? Find out here
Franchisors are seeking individuals with the ability to absorb and replicate up their knowledge and systems and develop a successful business through a mixture of hard work and the proper implementation of their business concept. A good mixture of the above attributes traditionally makes a great candidate for franchise ownership.