Table of Contents
- Then let’s dive right into it
- Choose a Niche That Suits Your Personality and Business-Minded Goals
- Create a List of Prospective Franchise Types
- Delve Deeper Into Your Rights as a Would-Be Franchisee
- Research Potential Location and Then Research It Some More
- Invest in Your Franchise
- Celebrate Every Milestone
- Follow These Golden Rules on How to Start a Franchise Now
Small franchise businesses contributed $787.5 billion to the US economy in 2019 alone. In the same year, there were 773,600 of these establishments, having created 8.4 million direct jobs.
Franchises, after all, aren’t just for the food and beverage industry. Granted, they did account for over half of all fast-food restaurants in the US back in 2012. Still, you’ll find it surprising that 63% of private mail centers back then were also a franchise.
In fact, franchises also take the form of gyms, salons, and storage centers among many others.
All that should tell you that the first step on how to start a franchise is to choose a specific niche. That’s only the beginning though. However, a franchise can be a bit easier to start than coming up with a business idea from scratch. Ready to learn what exactly you need to do to start a franchise?
Then let’s dive right into it
Choose a Niche That Suits Your Personality and Business-Minded Goals
Scientists have revealed that the risk for a heart attack goes up during Monday mornings. Yes, the same day that signals the start of the workweek.
Granted, there’s no solid proof yet on how work-related stress can trigger a heart attack. Still, some scientists suggest that stress from work is a major health risk factor. Unfortunately, as many as 10% to 40% of the workforce suffer from work-related stress.
Stress is inevitable, but it doesn’t mean that you’d want more of it because of work. That’s why it’s always a smart move to choose a line of work that you love doing. Even more so if you’re investing in your own franchise business.
So, as you choose a type of franchise, consider your personality, experience, and skills. It should let you make the most out of your strengths while also improving your weaknesses. Of course, you should also go with a franchise niche aligned with your business goals.
Keep in mind that the average person will spend about 90,000 hours — or a third of their lifetime — at work. Will your franchise be worth spending that amount of time on?
Create a List of Prospective Franchise Types
At this point, you’re likely eyeing two or more franchise niches, so it’s best to create a list to compare them. Let’s say your choices include food, technology, and video games.
Make a separate “table” for these three. Under each, list the names of the best franchises you’ve reviewed and researched. Then, note what you like and dislike about them and how much they cost to franchise.
Be sure that you understand each franchise’s internal policies, terms, and conditions too. They might be top earners in the market, but that doesn’t mean they fit your personal management style.
Delve Deeper Into Your Rights as a Would-Be Franchisee
This would depend on the specific franchise you choose, but at the very least, it should include:
- The use of the name and the trademark of the franchise business
- Employee training assistance
- Management training and support
- Use of the franchise’s platform or system
The franchise agreement should also indicate location-specific rights. For example, it should not permit another franchisee to open a branch too near yours. There should be a designated area to prevent franchisees from competing too closely.
Research Potential Location and Then Research It Some More
Location, location, location isn’t just a mantra for home buyers — it’s also for franchisees. The location of your franchise, after all, will be one of the key factors behind its potential profits. Even if you were to open, say, a food truck franchise, you still need to scout the best place to park it.
So, one of the top priorities of your franchise business plan should be the hunt for the right location. Don’t put it off — otherwise, another franchisee or business may get to it before you do.
Start by looking at high-traffic areas that consist mostly of your target audience. Aside from foot traffic, it should also be good enough to draw the attention of passing motorists. Don’t forget to consider parking availability for such potential customers.
Invest in Your Franchise
By that, we mean paying for the actual cost of the franchise and then taking things a few steps further. First, make sure that you follow the entire business plan provided by the franchise. This will help you stay on track of the operating, training, budgeting, and marketing steps.
Next, spend time curating a solid marketing campaign for your own franchise. Have a professional help you set up a website and social media accounts. For more marketing tips, you may want to check out this link: https://www.digitallogic.co/blog/introduction-to-franchise-marketing/.
Lastly, understand that a huge chunk of your initial costs would be for marketing and payroll. You need to accept this fact early on, as it will motivate you not to cut corners. Investing the right amount of time and money in your franchise early on is key to seeing it open for many years to come.
Celebrate Every Milestone
Once you’ve opened your franchise to the public, take time to pat yourself on the back! Share the joy with your people and your clients, perhaps by giving away promotional merch. From there, celebrate each milestone you achieve with everyone who made it possible.
It’s a win-win for everyone, so long as you make sure that these items offer utility. This way, you get to spread the good news about your franchise business through branded items. At the same time, your employees and customers will be happy to use them.
That’s free publicity right there. Plus, celebrating will help encourage you to continue striving to be the best.
Follow These Golden Rules on How to Start a Franchise Now
There you have it, your ultimate guide not only on how to start a franchise but also how to keep it going. Now that you know what’s involved, it’s time to decide if starting a franchise is the right choice for you.
What’s important is to neither rush nor delay the plan. If you rush things, your franchise may turn out not fully prepared for the market. If you put it off, someone else may open the franchise on that specific location you’ve been eyeing.
Ready for more guides like this to get your business idea started and launched? Then feel free to check out the rest of the posts filed under the Business/Finance section!