It has often been mused that youth is wasted on the young. The implication is that health, freedom and opportunity abound at an age when one is too young to have any idea what to do with it or to truly appreciate it. By the time a citizens crosses the grey line on the other side of 50 it is a much different story. Mistakes have been made and perhaps fortunes have been both won and lost. Whatever the outcome, what remains is an individual who has reached an age where they truly know how to get things done. With a certain natural wisdom and maturity that only comes with age, this population finds themselves in a prime position to take on the thrilling venture of entrepreneurship through franchising. So perhaps it’s time to put that wisdom to good use and find the opportunity that will carry you into the future during this golden season of life.

A 2nd Career When It Matters Most

Somewhere in around the age of 50, most individuals reach a milestone that recognizes at least 30 years in the workforce. Granted, some learn to hustle at a much younger age and they might have even earned a living for over 40 years doing everything from delivering newspapers as a kid to closing major deals in the boardroom as an adult. Whatever the case may be, if that is you then you are entering your prime and you have the capacity to revolutionize your future with franchising.

This is not about getting a 2nd job where you grind your days away just when you should be relaxing and hitting the golf course. This is about putting your life and professional experience to bear for your future. Whatever career you have found yourself in by the time you hit your mid 50’s doesn’t have to stop. Many successful entrepreneurs manage a full-time career as they set up their franchise operations. However, it is a fair question to ask yourself what you want to be doing when that primary career comes to an inevitable halt.

You might think you want to spend your days in front of the TV without so much as even putting on a tie ever again. You might then be surprised to find that retirees often report and overwhelming sense of boredom and isolation after retirement. Perhaps it is your belief that you are set financially for retirement and you plan to spend everyday on the golf course. Then again, you might find that your nest egg wasn’t quite as big as you thought as you carry yourself into your 70’s, 80’s and even 90’s. Right now is the time to take action that will pay social and financial dividends through it all.

So Let’s Talk About Franchising

At this point, some might be doubting whether they have what it takes to kickstart a second career.  If that’s you then let me speak to your skepticism. Regardless of where your career has taken you I assure you that you have the capacity to start your first franchise. The first step is simply finding one of the many thousands of franchises out there that stirs your passion. Perhaps it is a restaurant, fast food joint, tool shop, clothing store or you name it. If there is a good or service that people pay money for then it is likely that there is a franchise options for you. The next step is simply doing a little research or perhaps reaching out to the franchise to see if there is a market for it in your area. You might have a passion for selling ice, but if you live in Alaska that might not be the best venture.

Franchises are heavily invested in the success of their name and brand. As a result, they are not going to open up a franchise in an area if the market will not sustain it. So right from day one, you know that you have a good chance for success if the franchise is willing to put their name on it. Next, you just need ask yourself if the sum of your life experience has taught you anything about managing others. Running your own business might sound daunting, but overseeing a couple kids making your Lenny’s sub sandwiches isn’t exactly rocket science. At this point in your life, can you lead, manage and influence others for good?

Finally, you simply follow the plan. As we mentioned, most franchise have the data down to show what works and what doesn’t. Most can even give you a fairly accurate prediction as to when you can expect a return on your investment. If you follow the model and use what life has taught you over 50 years of life you are primed to succeed. Then, if you should so choose it is simply rinse, recycle and repeat from one franchise to the next. Certainly there is more to it than what was just mentioned, but if you think it overwhelming you might need to consider just how simple it could be.

A Future of Passion and Profit

So now, rather than look towards retirement with an uneasiness about finances or purpose you can sit back and relax like you always intended. The truth is that you can start a series of franchises when you are 50 and manage them for 30 years and still only be the ripe young age of 80. Whereas you might be more active with the franchise in your 50’s by your 60’s you can turn them over to a capable manager while it still creates revenue. Then when you are 80 and you are looking to buy the corner lot on Golden Acre Estates you can always sell them or pass them down to family. Passion, purpose and profit are closer than you think if you can make the leap to join the ever growing world of franchising.  

Owning and operating a franchise is the best way to start an independent business. It is relatively easy to raise finance, as the lender knows that you have the backing of the franchisor’s proven model. Additionally, you will be provided with access to the franchisor’s operations manual. This is an invaluable tool that will guide you in nearly every aspect of your functioning.

Remember that your primary function as a franchisee is to promote the business of the franchisor and market its products. You are responsible for protecting the franchised brand and building up a loyal customer base for the franchisor’s products.

How can you establish the new business and attract an adequate number of clients? You will need to develop your marketing skills and ensure that your franchise is in a position to meet the requirements of its customers.

Here are five marketing principles that you can use to build up your business and set it on the path to success:

1. Marketing is about beating the competition

Regardless of the type of business that you operate, your customers are going to compare you with others who provide the same service or product. It is absolutely essential that you position yourself in a manner that places you ahead of the competition in the eyes of your clients.

The first step that you must take is to identify your competitors. Understand their business model and the methods that they use to attract customers. Don’t be a copycat, but at the same time, your business must be in a position to offer clients a value proposition that is greater than that which is provided by your rivals.

2. Differentiate yourself from the competition

When you are running a franchise, you will need to follow a standardized approach in most areas. But it is definitely possible to differentiate yourself. Here are some ways in which you can do this:

• Employee training and attitude – each of your worker’s should have a deep understanding about the product that you sell or the service that you provide. Your clients will place great importance on the quality of the interaction that they have with your employees. Well-informed and courteous employees can be your greatest assets.

• Offer a consistently high level of service – set the bar very high within your organization. Do all that you can to ensure that every customer is given the greatest respect. While mistakes will happen, it is up to you to acknowledge them and take corrective action immediately. Your clients will appreciate your candor and the fact that you made the effort to rectify the situation.

3. Understanding your customers’ needs

You must take out the time to understand your target market. Which is the customer segment that you cater to and what is the exact need that you fulfill? Getting this aspect right is crucial to the success of your business.

When you understand why a client buys your product, you will be in a position to work on enhancing its most important features. You must conduct some primary research to get this information.

Your objective should be that when your customer has a certain need or requires a solution to a particular problem that pertains to the area in which you operate, your business must be the one that first comes to mind. This is possible only if you have taken the trouble to understand what your clients are looking for and worked towards addressing those issues.

4. Measure the results that you achieve

Your marketing expenses will form a significant part of your total budget. While this expenditure is absolutely justified, you must keep track of how it is helping to establish your business and build up its reputation. Which activities provide the greatest bang for the buck?

Every marketing campaign that you conduct should lead to greater awareness about your business. Over a period of time, it should also result in more sales. Soon after you launch a marketing push, implement a program to gauge customer response. The feedback that you get will help you to take corrective steps and optimize your efforts.

Another way that you can measure the effectiveness of your marketing strategy is to see the effect that it has had on the competition. If your rivals try to copy you or introduce a variation of what you have done, you will know that you are on the right track.

5. Build strong relationships

People like to do business with those whom they are familiar with. It is important to establish and nurture long-term relationships with your customers. Try and find the best way to stay in touch with your existing clients as well as those you want to add to your customer list. You could do this through email, personal phone calls, or even individual meetings.

Once a customer gets to know you and trusts you, the likelihood of doing a greater volume of business will increase. In fact, strong personal relationships form the bedrock upon which many successful businesses are built.

Check with your franchisor

A large part of your marketing efforts will be based upon the guidance and inputs that you receive from the franchisor. It will be your responsibility to execute the marketing plan in a manner that provides the best results.

However, if you think that you need to take some steps that do not strictly adhere to the guidelines provided by the franchisor, it is best to check with them first. Their advice and the information that they provide can be invaluable in helping your marketing efforts to succeed. 

Photo by Nathan Dumlao on Unsplash

One of the most important prerequisites for a successful franchise is a set of workers who have a positive frame of mind and a strong work ethic. Your employees must have the interest of your business at heart and they should be willing to walk that extra mile to ensure that your customers’ needs are satisfied.

How will you get your workers to develop these attributes? While it is crucial to have a stringent screening process for new employees, you must also learn how to motivate them so that they perform their roles effectively.

Here are several ways by which you can boost morale within your organization. If you are able to implement some of these techniques, it is likely that productivity will rise and your business will achieve greater sales and profits.

1. Don’t try and fit a square peg in a round hole

You may recruit an individual for a certain role but after a few months you may notice that the person’s skills are suited to a different job. This happens more often than you would think.

Smart entrepreneurs are quick to take advantage of these recruitment “mistakes.” Instead of trying to persuade the worker to do a better job, they simply reallocate work. In many instances, this benefits the employee as well as the organization.

In fact, there is a variation of this technique that you can use to give your business a boost. An employee may be performing perfectly well in the role that has been assigned. But you may think that this person could be more useful to your business doing some other work.

Shifting workers from one job to another is a good way of increasing productivity and allowing them to develop different skills.

2. Work on your communication skills

 When workers come to you with their problems, you must give them a patient hearing. Many business owners tell their workers “don’t come to me with problems, come with solutions,” but this is not a good approach.

Don’t discourage employees from raising issues that they cannot solve. If you do this, it is quite likely that you will come to know about a problem when it reaches an advanced stage.

If you maintain an open door policy, you will encourage employees to discuss what is bothering them. Over a period of time, this will lead to better customer service and more business for your franchise.

3. Learn to delegate efficiently

It is quite natural to want every aspect of your franchise to work perfectly. But this does not mean that you should carry out each task yourself or constantly look over the shoulder of the employee who you have delegated the work to.

You have to learn to let go and trust others. At the same time, it is essential to provide clear instructions and guidelines. Set up a mechanism that allows you to get regular feedback about how the work is progressing. If you do this, it will be possible to spot errors at an early stage and take corrective action.

Remember that delegation doesn’t mean passing on the entire responsibility for a task. You must provide the necessary guidance to the employee. It is also important to ensure that the person who is carrying out the task has the necessary skills and expertise.

4. Lead by example

As the head of the franchise, you are the role model for your employees. Everything that you say and every action that you take will create an impression on your workers’ minds. If you speak harshly to them, they may resent it and take out their frustration on the customers who visit your franchise.

One way that you can build morale and show that you care is to ensure that your employees are not overworked. A work life balance is important for your employees as well as for you.

If the situation warrants, you must be willing to work alongside your employees. This will help you to earn their respect and encourage them to put in their best.

5. Show that you are serious about results

If your franchise is to do well, you must closely monitor employee productivity and hold workers responsible for their individual goals. Don’t play favorites, because if you do, you will build a culture where keeping the boss happy is more important than achieving results.

Establish a system that measures end results. Each worker should have a clear job description and the actual achievement should be compared with the target that has been set. Every individual’s progress should be tracked and the necessary support and training provided to help that person achieve the stipulated goals.

If you follow this practice, you will instill a culture that encourages employees to work towards the goals that you have set for the franchise.

6. Create a positive work atmosphere

 Customers prefer an environment that is upbeat and cheerful. If the atmosphere in your franchise is gloomy and depressed, your clients will leave if they have a better option.

Get to know your employees as individuals. Even a little time spent on inquiring about their families and their personal welfare will help you to establish a better relationship.

Treat your employees with respect and they will pay you back with hard work and dedication. But if you have a dictatorial management style and you are constantly berating your employees, they will leave at the first opportunity.

A little praise goes a long way

One of the most effective ways to provide encouragement is to express your approval when a job is done well. Genuine praise is a strong motivator and it serves a dual purpose.

One, it makes the employee feel appreciated and is a great morale booster. Secondly, your workers understand that you are keeping track of their their activities and that you know how each individual is performing.

Photo by  Štefan Štefančík on  Unsplash

If your franchise needs to attract walk-in customers, you must select its location with great care. A choice made in haste or without taking every possible factor into consideration can lead to lower than anticipated sales and even business failure.

Every new franchise that performs well owes a large part of its success to its location. Your proposed site must be easy to access. If you expect customers to come by car, you must ensure that there is adequate parking. You must also ascertain that the site attracts the sort of customer that you are targeting.

It is very easy to go wrong with site selection. A neighborhood that sees a lot of traffic may not necessarily be good for your business. Similarly, paying a high rent does not mean that your sales volumes will be high.

What are the precautions that you can take when selecting a location? Although there is no way to be absolutely sure that a particular site is the most appropriate for your business, there are some steps that you can take to avoid making the wrong choice.

1. Study the area

Some franchises need to be situated at a place that sees heavy pedestrian traffic. This is especially true for restaurants and retail stores. If your business falls into this category, you would have to spend a substantial amount on rent. Opting for a lower-priced location that is in an area that attracts fewer people will result in lower business volumes.

But if your business involves a different type of activity, say, selling auto parts to trade customers, it would make more sense to select a site where the rent is less.

If you like a particular location, spend some time at the site and in the immediate vicinity. This will give you the opportunity to observe the level of traffic at different times. You should also make it a point to see how your competition is faring in the area.

If the territory already has a large number of businesses offering similar products, you may find it difficult to attract customers. On the other hand, this could prove to be an advantage as well. All that you would have to do would be to lure customers away from the competition. 

2. Speak to other franchisees

You can gather some very useful information by speaking to other franchisees selling the same product. Try and talk to those who have established their businesses in the recent past. Ask them how they went about the process of selecting a location. The intelligence that they provide can be invaluable.

It will be useful to ask other franchisees about the positive aspects of their location and its drawbacks. You can use what you learn from them to avoid making the mistakes they committed.

Of course, it is important to approach those franchises that are located at some distance from your territory. They should not be your competitors. If they are, they may not be willing to talk openly to you.

3. Don’t exceed your budget

Arriving at the amount that you are willing to pay as rent for your franchise location can be tricky. An expensive location will attract more customers and generate greater volumes of business. This will allow you to bear a higher rent.

On the other hand, a site in an area that attracts fewer people will probably get you a lower number of customers, but it will be cheaper.

Choosing between the two can be difficult. While it may be safer to opt for the site with the lower rent, this is not necessarily the correct choice. In fact, the general rule that you should follow is to select a location with greater potential. The additional sales that you generate will justify the extra expenditure on rent.

But don’t go overboard and lease a place that will stretch your budget. Remember that you are making a long-term commitment. If the location is inappropriate, shifting to a new place will be both expensive and cumbersome.

4. Patience pays

Your franchisor will be in a hurry for you to start operations as soon as possible. The real estate agent who is handling the property that you are interested in will also be keen to finalize the transaction.

Don’t give in to the pressure that is put on you. After all, it is your money on the line. Selecting a property is possibly the most important decision regarding your franchise. Take out the time to check if the location that you have selected will remain as attractive several years into the future. Is there any new development proposed for the area? Verify this with local, regional, or state authorities.

If a new road comes up and blocks access to your site, your business may suffer. Similarly, a new mall in the vicinity may draw crowds away from your location.

5. Understand the legal implications

The lease agreement for the property that you finalize is a crucial document. It is important that you have professional help that you can rely on. Your attorney should be an expert on real estate as well as franchising.

Study the agreement yourself and seek an explanation for the clauses that you don’t understand. Many of the points listed in the agreement will have a financial implication. You must spend time on this subject. If you don’t, you may get an unpleasant surprise months or years later.

Ascertain the costs that you will be responsible for. There will be utility bills and property taxes to be paid. There will also be other expenses like insurance, maintenance, and repairs. It is essential that you know which expenses you have to bear and how much it will cost you on a monthly basis.

Use your negotiation skills

Make sure that you see several properties. Don’t let the realtor or the landlord know your preference. If the landlord realizes that you have made a decision, you will find it difficult to negotiate the rent downwards. You should shortlist at least three or four properties. This will strengthen your bargaining position and allow you to drive the rent down.

The success of your franchise depends to a great extent on the degree of care with which you select a location. You must ensure that you give this issue the attention that it deserves. 

5 Simple Ways to Ensure That Your New Franchise Succeeds

 

Buying a franchise and starting off on your own can be a life-changing decision. For one, you will be committing a great deal of money, possibly a good portion of your savings. You would probably also borrow from a financial institution or a bank.

 

The pressure on you to make a success of your franchise would be great. Your ability to meet your repayment obligations to the lender would depend on how well your new venture does and the amount of cash that it generates. You would also have to commit your time and energy to the franchise. It is quite likely that you would have to work long hours, especially in the initial stages.

 

Most franchise owners are willing to do everything that is necessary to ensure that they get off to a good start and meet their business targets. But your success often depends on how carefully you have selected your new franchise and the manner in which you have conducted the due diligence exercise.

 

Here are some steps that you can take to shift the odds in your favor.

 

1.    Select the franchisor carefully

 

There are literally thousands of options that are available. How will you make a choice? Don’t make the mistake of using only financial considerations. Say, the budget that you have in mind is $100,000 (including the sum that you intend to borrow.) Your choice should not be limited to only those franchises that you can afford.

 

Instead, find a business that appeals to you. More importantly, you should have some skills or expertise that will give you an edge over the competition. This could even mean that you select a business that only requires half your budget.

 

Visit an existing franchise and see how the business operates. Can you imagine yourself running a similar enterprise? It is also a good idea to speak to several existing franchisees to gain an understanding of the issues that they face.

 

2. Select an appropriate location

 

If the franchise involves renting a physical retail location, your choice will play a large role in determining your business volumes. An outlet in a high-traffic area could cost more, but the greater sales could more than justify the expense.

 

Selecting a location should be a carefully considered process. If you happen to see a large number of people in the area that you are considering, you may think that the location is an ideal choice. But it may be wise to dig a little deeper. Are the crowds seasonal? Or are there a large number of students? A university or an educational institution in the vicinity may result in low footfalls for several months every year.

 

3. Seek advice from an expert

 

When selecting a franchisor, the range of options before you can be overwhelming. You could shortlist five or ten companies and then try to make a choice after studying their brochures or websites. But if you do this, you would be severely restricting your options. Additionally, it would be highly time-consuming to conduct a due diligence of even a handful of companies.

 

Remember that selecting the most appropriate franchisor is critical to your success. How can you make sense of the multitude of options before you?

 

Using the services of an expert can help you in making your decision. The Entrepreneur Authority, a franchise advisor, uses a structured process to guide you in selecting a franchisor that best meets your needs and your skill profile.

 

An added advantage is that the service is absolutely free. The Entrepreneur Authority is compensated by the franchisor if you decide to sign on.

 

4. Develop your people skills

 

The results that you achieve will depend to a large extent on your communication skills and your personal effectiveness.

 

You will need to develop leadership skills and learn how to motivate your employees. Carry out a frank self-assessment. Do you know how to build trust and inspire your team? Are you a good listener? Will you take out the time to train your employees?

 

Cheerful workers who are willing to put in their best can be your greatest assets. On the other, disgruntled and sullen staff will drive customers away.

 

Don’t neglect this vital requirement. If you are unsure about your ability to manage others, it may be worthwhile to spend some time in acquiring the skills that are needed to lead and inspire your team.

 

5.    Track your finances carefully

 

The cost structure in a franchise operation is higher than in an independent small business. You will have to make regular repayments towards the loans that you have taken to finance your franchise fee and to purchase fixed assets. Your employees will have to be paid and there will be a number of other administrative costs.

 

All these expenses will strain your finances, especially in the initial months when sales volumes are low. You will have to keep a close watch on your cash flow and ensure that you have the liquidity to meet all your commitments.

 

Even if you use the services of an accountant, it is essential that you remain completely involved in all financial matters. Monitoring your cash flow on a daily basis will provide you with the information that you need to cut costs and strengthen your financial position.

 

Follow the rules imposed by the franchisor

 

Finally, remember that you must follow the conditions laid down in the franchise agreement. Don’t try to save money by taking shortcuts or deviating from the franchisor’s stipulations.

 

It is your legal obligation to stay within the terms of the agreement. In extreme situations, breaking the rules could lead to your franchise getting terminated and result in large financial losses.