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Franchise

What’s Your Franchising Aptitude?

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The thought of being your own boss can sound pretty wonderful to someone tired of working 50 to 60 hours a week to make money for some impersonal corporation. And there is probably no better way to be self-employed than by buying a franchise and taking advantage of all that franchising has to offer: a tried and proven business model, initial and continuing training, an operations manual, a recognizable brand identity, corporate buying power, a national marketing program and often much more.
But if you’ve never been a business owner, you will probably wonder if you really have the skills to be successful as a franchisee. After more than a decade in the industry, I’ve learned that great franchisees come from a large variety of backgrounds and possess an endless variety of skills and personality traits. However, there are a few key characteristics that most successful franchisees have in common.
If you are considering the purchase of your own franchise business, I’d suggest you first take a look at the following attributes and determine if you have what it takes to be successful as a business owner.
Leadership
It can take an enormous amount of work to get a new business off the ground – not that you need to do everything yourself. That’s why leadership is an important attribute to a successful franchisee.
Are you comfortable delegating responsibilities, making decisions and dealing with the results of those decisions? Can you motivate your employees to work hard for you without constant supervision? Most importantly, do you lead by example, inspiring confidence in your employees?
If you can answer these questions affirmatively, you probably have the leadership qualities necessary to be a successful franchisee.
Coach-ability
“Whoa,” you may be thinking. “First I need to lead and then I need to follow?” As we say in Minnesota, “You betcha!”
While you may need to lead your employees, it is just as important in franchising that you understand you are not only buying a business but an entire system. Your success as a franchisee depends on you ability to learn and follow the system provided for you. If you think your time is better spent making your own rules and revising the system than in learning how to do it the franchisor’s way, you’ll be a failure in your business.
The whole advantage of franchising is that the customer gets the same great service and/or product from franchise to franchise and all the franchisees reap the benefit of that expectation. If you are unable, unwilling or uncomfortable executing someone else’s system, then you’d be better off starting your own business and leaving franchising to others.
If, however, you can understand the advantage of following a franchisor’s system, you are now one attribute closer to franchisee success!
Networking
As you choose your franchise company and the location to open it, you are also choosing to become part of the community. This is where someone with great networking skills will shine. By getting to know your neighbors and fellow business owners, you will be able to publicize your business more easily while also building good-will and loyalty with your customers.
For the business-to-business franchisee, joining civic organizations such as the local chamber of commerce will be critical to success by allowing you to network with the leaders of the business community.
If you are truly a people person and enjoy social interaction, you have one of the most important features of any successful business person.
Determination
The last attribute of most successful franchisees is that they are willing to do whatever it takes to make their business successful. Many people think that being a business owner means you take a lot of time off and are free to play golf three days a week. This may be true of some franchisees but it does not happen overnight! A lot of hard work is needed the first couple of years you are in business as you build your customer base, train employees and go through your own learning-curve.
If you are someone who is likely to quit when the going gets tough, this isn’t the career for you. However, if you have the determination to make it happen and will work whatever hours are necessary to establish your business, you have a good chance of success as a franchisee.
One of the statistics sited over and over in franchising is that franchise businesses are exponentially more likely to succeed than individual new start-ups. According to Department of Commerce figures, after seven years 91% of new franchises are still in business, as compared to only 20% of individual new start-up businesses. Perhaps one of the reasons for this success is that franchisors can hand-pick their franchisees and choose only those they feel have a good chance of making it as a business owner.
Do you have what it takes to be successful as a franchisee? If you have leadership qualities, have the willingness to follow a tried and proven system, are skilled at networking and have the determination to follow through, then you, too, may achieve your career goals through franchising.

KimberlyEllisPhoto.jpgKim Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.

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Franchise

Why Franchising Attracts Women Entrepreneurs

busy-woman.jpgHave you ever wondered what it would take to leave the corporate world behind and own your own business? Are you tired of being the go-to girl, a small fish in a big sea, earning money for someone else? Is it time to take charge of your future and really be in control of your destiny?
If you answered “Yes” to any of these questions, then you’ve thought about business ownership – but something has stopped you from moving forward. Was it lack of experience? Couldn’t think of a unique concept that would compete with established brands? Fear of the unknown? If so, you are not alone.
That’s why so many people have turned to franchising – and a record number of those franchise owners have been women. When you buy a franchise, you have help setting up and running your business. The concept and brand name are established and recognizable by the public. And there are experts to “hold your hand” and answer any questions along the way.
In the United States the number of women-owned businesses grew at twice the national rate for all privately held companies from the period of 1997 to 2002, according to census data. One reason may be that business ownership is a way for women to crack through that proverbial glass ceiling. Another reason is that it can give a woman more flexibility, something greatly desired by those with a home and children to manage.
For many women, owning a franchise can be the easiest way to achieve their dream of business ownership. No one claims that every franchisee is successful; however your comfort level will be greatly increased if you follow a tried-and-true system instead of building something from scratch.
Here are some of the ways a franchisor may help their franchisees:
• Build-out/Site Selection. From the look and layout of your store to the location to the signage, a franchisor knows what works to draw customers. Most franchisors will offer guidance in these areas and some even have employees who will work one-on-one with a franchisee to accomplish each of these tasks.
• Marketing. Most franchisors have a marketing strategy that takes into account the demographics of the franchisee’s territory and the best way to get business. Many also require the franchisee to contribute to a national marketing fund, which buys national advertising. A national TV ad, for example, will increase brand awareness and the buying power of many contributors will allow greater penetration into markets.
• Proprietary Software. If your business will rely on technology, many franchisors have specifically designed software to keep track of customer lists, inventory, accounting, or whatever is needed to keep the business running smoothly.
• Employees. When a business has many open locations, they have significant data to draw upon. This can be of great help when you need to hire, manage and retain employees. A franchisor can tell you what type of person to hire, where to advertise for employees and may even provide employee manuals and other resources.
• Buying Power. A major advantage of being a franchisee over being on your own is having the buying power of a large business. Whether your product consists of bread or batteries, or your service is house painting or dry cleaning, you will benefit from the greatly reduced prices you pay for supplies and inventory because of the quantity purchased by the franchisor.
• Training. Say you want to own a window tinting business but you don’t know a Cavalier from a Camry. No problem. A franchisor will train you in most everything you need to know to run your business – including how to hire the people who do know their way around cars. You will still need to have innate business skills and a great work ethic to succeed in your business but most specific parts of the business can be learned.
This is the safety net a franchise provides: a tried and proven concept with operations, marking, distribution, accounting, technical support, brand, etc. all in place, tested, retested and ready for a sharp, hard working entrepreneur to join the team. Growing a business through franchising obviously works. U.S. Department of Labor statistics show that franchising accounts for approximately one trillion dollars a year in sales and is increasing at a rate of about 8% per year. For a woman who is preparing to run her own business for the first time, it can be the best of both worlds. A franchise provides the help and guidance of a big company along with the control and flexibility of a small business.
If you’ve been thinking about owning your own business, buying a franchise may provide you with the security you need to make the commitment. A good franchisor will provide you with training, support and continuing help – after all, they don’t succeed until you do. With over 1,600 franchise concepts in the US today, there’s never been a better time or a better place to follow your dream of business ownership and you will find lots of company – women populate all areas and all sectors of franchising.
KimberlyEllisPhoto.jpgKim Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.

Categories
Franchise

Why You Should Keep Mum to Mom

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For years you’ve listened to your mom’s sage advice: “Turn off the lights,” and “Save your money” Most of the time that advice was pretty good and many times you even followed it. Now don’t tell your mom I said so, but there’s one time when your mother’s advice may not help you and that’s when you are about to invest in a franchise opportunity.
Look, I still think mom is right up there with baseball and apple pie. It’s just that when it comes to making a life-changing decision, those “trusted advisors” in your life may not be the best people to help you make the choice. Whether it’s your Uncle Ed, your best friend, or Dear Old Mom, your biggest fan can quickly turn into Ebenezer Scrooge when you tell them you want to buy a business.
Let’s take Uncle Ed. He’s been around the block a few times and knows a number of people. As a matter of fact, he knows a guy who knows another guy who had a brother-in-law who once owned a business and it didn’t do well. Now that business may have been selling pet rocks a decade after the fad went out of style and the owner may have spent more time in hip boots fly fishing than he did in his store selling painted stones. But in Uncle Ed’s mind, only one fact is relevant: “The guy didn’t do well.” Therefore, he is certain, you won’t either.
Is this the person you want to make a career decision for you? He may think he wants what’s best for you but instead he’s picturing you as having already failed. If you need advice about purchasing a franchise, make sure it is from someone who understands franchising.
I’m not suggesting you keep your franchise research a big, dark secret. But I would suggest that you carefully consider who you listen to. If you don’t, you will find yourself swamped with well-meaning but ill-considered advice.
“But I tell my best friend everything,” I can hear you say. “She knows me better than I know myself.”
If you are considering business ownership as the next step in your career, you’ve already done a good deal of soul-searching and self-evaluation. There’s always the element of risk in a new venture but, because you are considering business ownership through franchising, you’ve already taken a big step towards limiting that risk.
Franchising offers you the ability to start a new business without starting it from scratch. Your franchisor will provide you with training, an operations manual, marketing assistance, on-going support – and more. They know what works in their business and truly want you to be successful.
Of course if there’s one person who truly has your best interests at heart, it’s your mother, right? No one can disagree with that. However, let’s take a look at this picture through your mother’s eyes.
First, she’s coming from a different generation. In her day, people picked a career, got a job, and then worked in that job until they retired. I’m generalizing here but for a good part of the last century, having a job meant security. Keeping a child safe and secure was mom’s number one goal. Therefore, she believes you should have a job. She wants you to be happy but she’d rather have you safe and any change in routine is seen as fraught with potential danger.
Now, there is one person you must include in your decision making and that’s your spouse. Any decision you make should be with the full support of your partner. Many franchisors require the spouse be a part of all phone conversations and face-to-face meetings because they know that no decision will be made unless the spouse is onboard. Whether or not your husband or wife will be involved in the business, it is of critical importance to a new franchisee that the significant other agrees with the purchase and will provide emotional support.
As for the others? Our experience shows that those trusted advisors can be well-meaning, but sometimes they are not equipped to help you evaluate such a significant decision. Generally, family and friends want to support us and want to see us do well, but they also recognize their job as protecting us from dangerous decisions.
In the end, buying a franchise is not about your uncle, your best friend or your mom. It’s about you and your future. You need to make the decision whether owning a franchise is the right move. If you need an advisor, make sure you choose someone who understands franchising and will help you make a decision based on fact, not emotions.
Mom was right about so many things. Sitting up straight, eating vegetables and getting enough rest are still part of my daily routine. But mom and your usual trusted advisors aren’t usually experts in franchising. So, when considering business ownership, you may want to keep mum to mom. When your franchise purchase is a fait accompli, invite your trusted advisers to do what they do best: bring the balloons, buy the champagne and help you celebrate your new business!
KimberlyEllisPhoto.jpgKim Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.