Keys to Running a Successful Franchise Business
Franchising is a continuing relationship in which an established company licenses another party to sell its products, goods or services under its brand name and offers assistance in organising, training, merchandising, marketing and managing in return for monetary consideration. It is fact that franchising is growing faster than most other sectors in the Indian economy. Consequently, the franchise business is becoming increasingly popular among domestic and international players across many sectors. However, needless to say, just because you have a franchise does not imply that you will be successful. The franchise owner has to bring something to the table. The present blog would ensure some keys to ensuring the franchise success.
- Choosing a right franchise:
To get the right match, analysing who you are and what are you good at is an important step. Franchisees whose competence, skills and interests match well with the business are generally more successful than the others. You should know what you’re comfortable with, what disposition you have acquired in your professional experience. You also need to know if you like interacting with customers behind the counter of a retail location or being out in the field working with clients and customers. Running a franchise and making one’s mark indeed requires tremendous dedication on the part of a franchisee. The level of dedication would be the result of passion within you. The passion makes it love’s labour to run the franchise. Also, obviously one should invest in the franchise yielding maximum profit. The more you invest, the more chances you stand to earn a profit. In a nutshell, there should be a fine blend of passion and profitability within you. Merely being tempted by financial opportunities may not yield long-lasting and favourable results especially if the passion and interests of an individual do not fit for the business.
- Follow the Franchise System and Rules:
If you become the owner of a franchise, it would behove you to follow the rules. You should ask yourself if you’re a rule-follower. In case you aren’t, then there’s no place for you in the franchising business. However, the franchise system and rules constitute a proven way to increase the chance of success. You will have to adhere to the franchise agreement. Violation of the franchise agreement can result in the termination of the agreement and losing the franchise. You must read the operation manuals thoroughly and attend all the training offered by the company which in turn would help you comprehend the franchise system and the related requirements completely.
- Having a Business Plan:
A business plan is a written document providing an overview of the business, your objectives, market, management team and financial projects. It secures funding for the business and monitors the ongoing performance of the business. Preparing and presenting an efficacious business plan makes all the difference between success and failure for the same would be used to convince prospective lenders, investors and customers that you have considered. The business plan would not only give your business a sense of direction but also convinces others that you have it. It helps build commitment and gives you the needful to measure your progress. You would need to address the questions such as:
What are your short-term and long term goals?
How will you achieve the set measurable goals?
Which standard of measurement will you use to track your progress? What risks are likely to be faced? Who are the competitors in the market? The business plan should be solid, comprehensive, ambitious and achievable.
- Marketing:
Marketing is a process of communicating, delivering, and exchanging offerings that have value for customers and clients and thus interest them in your services and/or products. Similarly, Franchise marketing is an activity to grow franchise. When explicated more, it comes out to be of two types namely Operational Franchise Marketing and Franchise Development Marketing. In the former, there is an involvement of both franchisor and franchisee whereas in the latter only the franchisor involves himself into the process of marketing. Franchise marketing is indeed a challenging and difficult task. When it comes to franchise, the marketing becomes even more challenging because of some factors like the relationship between franchisor and franchisee, Inherited Franchisees, and Shared Marketing Costs. However, Marketing is a critical aspect of any business. Some common and effective marketing strategies include:
- Digital Marketing (Inclusive of Standard quality website, creating a relatable and qualitative blog for content marketing, the play of local SEO, responding to reviews, et c..)
- Trade Shows
- Referral Marketing.
- Loyalty Programs
It’s important to find a balance between online and offline marketing strategies. Also, the best practices for franchise marketing involve the fine balance between franchisee and franchisor control.
- Building Relationships with Customers, Employees and franchisor:
Developing and maintaining a good relationship with the customers, employees and franchisor determines to a great extent, the success of the franchise business. It’s important to remain in touch with the customers through whatever medium, finding out what they want and figure out the ways to make them satisfied and happy. Similarly, building relationships with employees can also not be ignored. Since you are a part of the franchise system, certain things are out of your reach like fixed uniforms of the employees, pay to working conditions and sticking to the rules. However, you can get to know them personally, communicate with them and appreciate their performances when they deserve. And last but certainly not the least, the relationship with the franchisor. Keep in regular contract, complete reports on time and act promptly on new directives. If ideas are welcomed, you can even share your ideas to the franchisor.
To conclude with, it can be said that franchising business in India is booming at a high rate and the growth is expected to multiply with the space of time. Franchising provides you a number of benefits and makes your journey to establishing a successful journey easier and smoother. Also, franchisors provide you with start-up training and lasting support during the life of your business. However, a lot depends on you and nothing can replace your role and contribution to upgrade the bar of franchise.
If the aforementioned steps are considered and followed, the boost in the profitability of your business would surely be evident. For any advice related to franchising, feel free to contact us at:
Email id: support@franchiseinsider.in
Website: www.franchiseinsider.in
Phone: +91 6351238956
