If you’re thinking of buying a franchise, it’s important to understand the skills and traits you’ll need to be successful. Not everyone is cut out for franchising, so it’s important to assess yourself before committing. This post will discuss the key skills you need to run a successful franchise business. Keep in mind that this is not an exhaustive list – each franchise is different, with each one having gone through a different path of franchise development. So do your research before getting started. However, you’re off to a good start if you have these skills!
Before diving into the skills you need for franchising, it’s important to understand franchising.
What Is Franchising?
Franchising is a business model in which a company (the franchisor) grants another party (the franchisee) the right to use its brand and sell its products or services in a specific territory. In this business model, the franchisee agrees to follow the franchisor’s business model and adhere to its operating procedures. In return, franchisees pay a fee and ongoing royalties to the franchisor.
What Are The Types Of Franchises?
Now that we know what a franchise is let’s describe the types of franchises.
Product Distribution Franchise – In this type of franchise, the franchisor licenses the franchisee to sell its products in a specific territory. In essence, the franchisee acquires the right to use the franchisor’s patented products, trademarks, and other business assets. A Good example of a company that follows this type of franchising is the beverage company Pepsi.
Business Franchise Model – In this type of franchise, the franchisor focuses on maintaining the quality of their product while also building their brand’s reputation. Companies such as KFC and McDonald’s use this type of franchising.
Management Franchise Model – When the franchisee is responsible for managing the franchise, then the business is known as the management franchise model. The franchisor, in this case, is responsible for business operations. A company that follows this approach is FedEx.
With this background information, let’s discuss the skills you need to succeed as a franchisee.
Be A People Person
To run a franchise, you’ll be dealing with staff and customers daily, so being a people person is quite helpful. This skill will enable you to communicate effectively, handle difficult situations diplomatically, and maintain a good working relationship with your employees.
In addition, as the face of the franchise, you’ll be responsible for representing the brand in a positive light – both to customers and the community. So, building relationships and communicating effectively will be key to your success.
Leadership
Starting any business is never a walk in the park, and a franchise is no different. As a franchise owner, you’ll be responsible for leading and motivating your employees to meet the business’s goals. This means setting a clear vision for the future, developing strategies for achieving goals, and delegating tasks effectively.
If you’re not a natural leader, don’t worry – plenty of resources are available to help you develop these skills. But it’s important to know that leadership will be a big part of running a successful franchise.
Being Able To Follow A System
Franchising is based on a business model that has been perfected through trial and error. So having the capacity to follow the franchisor’s system seamlessly is crucial to the success of your franchise.
Following a system will enable you to maintain the franchisor’s brand and the quality of the products and services that customers have grown to love and expect.
Working with Numbers
All said and done; franchising is a numbers game. You’ll need to keep track of inventory, monitor employee productivity, and track the business’s financial performance. Even though hiring an accountant can help, having a head for numbers is a definite plus in franchising.
Not everyone is a math whiz. However, many applications and software programs are available to help you keep track of the numbers associated with your business.
Self-Motivation
Although you will be working with a system that has been proven to work, you’ll need to put in the work. So being self-motivated and driven is necessary.
As a franchise owner, you’ll be responsible for ensuring the business is running smoothly and efficiently. This means taking the initiative, being proactive, and always looking for ways to improve the business.
That it! These are just a few skills you’ll need to succeed as a franchisee. Do you have what it takes?
If you’re considering franchising, it’s important to know the skills you need to succeed. Being a people person, having leadership skills, the ability to follow a system, and self-motivation are all key to running a successful franchise.