Follow the System
One of the best things about buying into a franchise opportunity is that you don’t have to re-invent the wheel to be successful.
The systems are already there. All you have to do is follow the systems to see a strong return on investment. Unfortunately, there are plenty of people who buy into a franchise system but feel the need to make changes to the system when it comes to their particular business.
While these franchisees might think they are helping the brand, in fact it’s just the opposite.
They’ll step out of line in terms of marketing, sales or even the company’s overall image, damaging the brand and hurting other franchisees in the process.
Since buying into a franchise is one of the surest bets in business, why do so many people who buy into a franchise feel the need to make changes?
The desire to innovate is why the human species no longer lives in caves and sure, a bit of innovation can be a good thing. After all, the McDonald's franchise came up with the Big Mac after one of their franchisees tried it out as a new sandwich on his menu.
But it’s important to remember that franchise systems are setup the way they are for a reason and the reason is… they work.
Having built the world’s largest business coaching firm through franchising, I can tell you from experience that I, as most franchisors, have spent a lot of time, money and energy to perfect the systems we use. Nobody cares more about those systems and how they work than we do.
So what can franchisees do if they feel the need to make improvements to their business?
Go back to the system for a solution … and follow the system!
Need help with sales?
Follow the sales system.
Need help with marketing?
Follow the marketing system.
Need help with recruitment?
Follow the recruitment system.
If you find the system isn’t working, talk about the problem with other franchisees or the franchise headquarters itself. Odds are the answers are already within the system, and your solution will simply be a matter of better communication, additional training or more education.
Don’t be afraid to ask questions. Any good franchise system has a system that allows a free flow of information, ideas and feedback, because that in itself is a key to the future growth of not only your business, but the franchise as well.
Learn as much as you can and follow your own system step-by-step before trying to innovate or working outside of the systems that are already in place for you.
After all, that is why you bought into a franchise system in the first place, isn’t it?
Brad Sugars is the Founder, Chairman and President of ActionCOACH, the world’s number one business coaching and executive coaching firm, with more than 1,000 offices in 32 countries. ActionCOACH specializes in coaching small to medium size business as well as executive teams and group coaching. You can follow Brad on Facebook and Twitter.
Time Saving Tips for Franchise Shoppers
Time is a precious commodity these days and although buying a franchise is a time consuming process, there are ways to cut to the chase. Of course you should do your due diligence, but first make sure you’re focused on viable choices. Here are some tips to quickly identify the best franchise opportunities for you so no time is wasted.
What Draws Investors to Franchising
Most prospective franchisees are drawn to the business by previous frustrating experiences in their past employments. This could have been caused due to lack of control over one’s work environment, being bound to report to superiors and insufficient room to exercise one’s authority at their work place. The micro- managing bosses, unresponsive organizational structures, or lack of voice in the organizations process are a few of the reasons why many people decide on investing in franchises as their new career. By investing in this business they take control over their own life with a little risk as compared to starting their own business from scratch.
How Do You Pay for a Franchise?
Whether you’re purchasing a whopper from Burger King or joining the Burger King franchise system, the old mantra holds true: there’s no such thing as a free lunch. When you first get started running a franchise you need to pay a fee to allow you to enter into that franchise. These fees are the largest fees that you will normally pay a franchisor and typically range between $5,000 and $1,000,000 depending on the franchise. The franchisor charges this fee as a way to recoup the costs of expanding the franchise and to continue to grow. From a franchisee perspective, this is a major outlay and can take a long time to make back, but is a necessary step. Aspiring business owners must understand how much capital is available to them so they can ascertain how much they can afford. The cash you have at your disposal is known as liquidity, and there are numerous ways to increase your liquidity above the balance in your bank account. As a result, many people don’t realize how much capital they actually can use for investments, like launching a franchise branch. We’ll run through some of those methods below.