10 Tips for a Successful Franchise Business
Have you thought of running a franchise? Or, maybe you currently own one – or more. Running any small business – even a franchise – isn’t easy. However, a franchise does come with certain built-in advantages. It’s basically known as a business in a box, because the business has already been developed by the franchisor. For instance, a franchise already comes with brand name recognition, so, theoretically, getting customers should be a little easier. Also, in some cases, the franchisor provides franchise owners with detailed manuals to help them run their business. While these things are helpful, running a franchise is still hard work and can be overwhelming, especially when starting out.
Therefore, The Payroll Department has compiled 7 useful strategies to help your franchise grow and succeed:
- Create a Plan and Stick to It. Unfortunately, many owners don’t plan for their business’s future, because they get caught up with daily operations and management duties from the get-go. Therefore, regularly set short- and long-term goals for your small business. Have an action plan for how you’re going to achieve these goals and follow-through with each step.
- Comply with Franchise Rules. Every franchise owner must complete a franchise agreement. Make sure you refer to it often, and follow it precisely. By obeying the rules, you can avoid legal repercussions. Plus, your customers will get the same experience they expect from your brand at your franchise location.
- Benefit from Your Franchisor’s Resources. Use any programs or tools your franchisor may have, such as training, marketing, technology, web support, and financing options. Communicate regularly with your franchisor to learn more about upcoming events or other opportunities to improve your business. Attend annual events sponsored by your franchisor. Collaborate with other franchise owners to learn from their experiences.
- Focus on Providing Excellent Customer Service and Satisfaction. Your customers are essential to your business’s success. Therefore, you need to ensure you have repeat customers, and that you receive referrals. Properly train your employees to provide exceptional customer service. Provide customers with opportunities to give feedback. Use their feedback to make changes in your business to improve their experience. Create loyal customers by offering sales promotions, providing incentives for repeat business, and rewarding them for referrals.
- Market Your Franchise. While your franchisor’s national advertising campaigns will help promote your brand, you still need to market your franchise locally. Get featured in local newspapers or magazines. Rent an exhibit booth at local events. Sponsor community events, like fairs, high school football games, and charity fundraisers. Offer discounts and coupons. Give back to your community by supporting local non-profits.
- Network with Other Business Professionals. Join your local chamber of commerce, industry associations, professional organizations, and small business Meet with other business leaders to share ideas and discuss success strategies.
- Properly Manage Your Finances. Most franchises have initial and recurring franchising fees. They may also have debt from building costs and setting up their franchise. Additionally, they have employees they must pay as well as tax responsibilities. Therefore, a big part of running a franchise is staying on top of bookkeeping, cash flow and managing debt. To do this, you need to have accurate, up-to-date books. With these figures, you can make better financial decisions about your franchise.Unless you have a bookkeeping degree or prior experience, doing your own books may lead to serious long-term consequences for your business. The Payroll Department, located in Central Indiana, offers bookkeeping services to area businesses, including franchises. Not only can our experienced bookkeeper Grace Walker handle your franchise’s on-going bookkeeping needs, she also can carefully address any bookkeeping issues you may have and offer expert solutions. When you outsource your bookkeeping to The Payroll Department, you’ll be able to increase your productivity and work smarter doing what you do best – growing your business. To learn more about The Payroll Department’s bookkeeping services, contact owner Teresa Ray at 317-852-2568.
By following these tips and pursuing all the resources available to you, you can position your franchise for growth and success.
-Ariane of The Payroll Department blog team