The franchise industry is highly competitive because franchising is the easiest way to expand a business and grow. However, not all franchises are successful. In fact, a majority of them fail within the first year and a few more collapse in the second. While franchising is a shortcut to growth, it’s not an easy road to take, and success isn’t guaranteed. If you take concreted and well-planned steps at the outset, you will increase your chances of making it to the top. Here are some secrets that you need to know.
Branding and marketing is one of the biggest aspects of a franchise. If you don’t establish a visible and solid brand, no one will be willing to invest in your franchise. Your franchise will have the greatest chances of success if you spend some time and effort on refining your brand. Here are some things you need to consider:
Solid branding is your first step towards franchise success and you should establish it early and become visible as quickly as you can.
Your franchisees will be the representation of your company. If customers visit one franchise and have an unpleasant experience, it’ll reflect poorly on the brand. It’s essential to train them well and you can only do that if you have a proper training system in place. You should consult with experts and study successful franchise training programs and come up with an efficient system for your company. Great training will ensure that your franchisees understand your system and work with it well.
You should also create a franchise operations manual. It would function as a guide and reference book to your franchisees. They can read it if they have any queries about operations procedure.
Many franchises rush into the marketing and expand quickly and that doesn’t work well for them. While there’s nothing wrong with being ambitious, you need to proceed carefully and methodically in the first few years of your establishment. In fact, your marketing would experience a boost if you’re a rare commodity.
You should establish a limited number of franchises and offer excellent service through them for the first few months or years in business. Once you have a strong fan following and an established name, you can expand to where the demand is. You can even get your loyal customers involved and ask them where they would like you to establish another branch. This would allow you to control your growth and keep a steady pace so that you’re not overwhelmed.
The greatest secret to a successful franchise is a great start-up team. You need people who are committed, hardworking, and versatile. They should be able to network with different business associates and supplies, negotiate good prices, spot promising potential franchisees, and be great educators. This is a tall order so you should choose your team meticulously to ensure they can accomplish everything that they need to accomplish.
A great team will be the backbone of your company and help your franchise reach new heights. If the core and foundation of your company is solid, it can weather the turbulent first few years.
If you want to know more about how to succeed in your franchising business, or want some advice, feel free to get in touch with us at The Franchise Institute. You can call us on 1300 855 435 or fill in this contact us form and we’ll reply as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435