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.
Kim 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.
