What if starting a successful business was easier than you ever imagined?
That’s the promise many investors are chasing when they open a new franchise. After all, combining a proven product and an eager market is practically a shortcut to success.
But many franchises fail when the owner doesn’t know what they are doing. To help you avoid that fate, we put together this guide for how to hit the ground running as a new franchisee.
Looking for a New Franchise for 2022? Find the Right OneThe first step may seem obvious, but it bears repeating: Before you do anything else, you need to find the right franchise.
Which new franchise is best for you? Typically, you’ll want to find a franchise in a growing field (such as insurance) to better prepare for the future. And you’ll want to make sure your target market isn’t overly saturated with this kind of business.
You also want to make sure this is a franchise you understand and respect. It’s important to research the company’s reputation and see what customers are saying about them before you invest any money.
Do Your Market Research
One of the primary reasons investors open new franchises is because the franchise sells a proven and reliable product. But to make sure those sales continue to be reliable, it’s important to do your market research beforehand.
For example, how popular are businesses of this type in your chosen area? What upcoming industry changes will affect how profitable these industries are? And do you properly understand the main demographic you will be selling to?
If you are opening a business in your own town, then you may already have answers to these questions. But it’s important to research as much as you can before you open a franchise.
Always Ask Questions
When it comes to how you deal with the franchisor, our advice boils down to three little words: “Always ask questions.”
A good franchisor serves as an extended support system for your new business. They can help you get started with minimal friction and also help you troubleshoot unexpected problems.
We recommend asking potential franchisors many questions long before you sign any paperwork. If they seem rude or even unwilling to answer basic questions when you are a prospective customer, you know how they will treat you as a franchisee. Conversely, if they are polite and helpful, then you can look forward to a positive working relationship.
Do Your Budgeting Ahead of Time
Speaking of things to do before you sign the paperwork, it’s important to do all your budgeting ahead of time. The last thing you want to do is run out of funding when you are still trying to get your franchise off the ground!
It’s important to know the overall purchasing costs and have an itemized breakdown of things like inventory costs. You’ll also want to budget for less tangible things, including marketing your business. Finally, you’ll want to have a decent estimate of how long it will take before you are generating profit.
That last tip is important because even for important franchises, it can take time for you to see actual profits. And you’ll need to have enough funding to sustain you from now until then.
Do your Homework on Financing Opportunities
Unless you are independently wealthy, then starting a new franchise means finding financing. Unfortunately, it’s an open secret that some financing opportunities are better than others. Therefore, you need to do your homework when it comes to researching financing!
Besides finding a reputable bank or other lenders, see if they offer any special franchise financing. Finding a custom funding solution like this can help you get more competitive rates.
And it’s important you know what the exact franchise fee is and what the repayment terms look like. Knowing this makes it easier for you to get the exact financing you need.
Hire the Best Team
Have you ever heard business owners tell the world they are nothing without their team? They aren’t lying!
While a franchisor can do a lot to help you set up a business, keeping that business running largely comes down to top-notch customer service. To have the best service, you need to surround yourself with the best team.
In the coming days, you may need to make hard decisions about things like employee salary. We say “hard decisions” because, as a new franchisee, you may be tempted to pay lower wages and retain more profit for yourself. But low wages lead to quick employee turnover that will ultimately sabotage your customer service efforts.
Long story short? Take the time to hire the right team and pay them what they are worth. This helps you build your brand quickly while also ensuring that you don’t have to constantly train new hires when you just want to run a business!
When Acquiring a Top New Franchise you need to Learn How to Delegate
We’ve discovered that most people who start their own franchise are used to taking charge. These are the risk-takers and bold decision-makers that have helped to shape the world.
Unfortunately, entrepreneurs with these qualities often end up micromanaging their new business. So our final bit of advice is that you need to learn how to delegate important responsibilities to your team.
As the franchise owner, it’s your job to keep an eye on “the big picture.” That means you can’t solve every problem that pops up throughout the day. But if you hire the right managerial staff, you can focus on building your brand and boosting profits. As an added bonus, the employees you delegate responsibility to will feel an additional sense of pride that you trust them so much!
Start an Insurance Franchise Today
Now you know how to hit the ground running as a new franchisee. But do you know who can help you start a successful franchise today?