December 2008

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Tips for running a successful franchise

December, 2008

  • Choose the right franchise. This is a highly personal decision and requires no small amount of self-assessment. Your buddy across the street may run a successful health-and-fitness franchise, but if you hate the gym and avoid workouts like the plague, you should probably continue looking. Also, it's important to choose a franchise with a proven track record and stellar reputation. Go with a firm you'll be comfortable working with for the long haul. After all, you'll need the franchisor's help in a variety of areas — from marketing to training to bookkeeping — especially during the crucial start-up years.
  • Listen, listen, listen. A wise franchise owner is not a know-it-all. He or she is more like a sponge, soaking up information — especially from the franchisor. Remember, they make money when you make money, so your success is in their best interest. Besides, they've been down this road many times before. Take advantage of that wisdom.
  • Hire the best employees. This, of course, is easier said than done. Relatively unskilled applicants may knock on your door, but taking time to review high school grades or check references can provide important clues to future performance. If your applicant got an A in geometry and received a glowing report from his former employer, he's more likely to be a responsible worker. Remember, hiring employees who treat customers well is vital to business success.
  • Monitor business performance. A franchise should operate according to a well-researched business plan, and the owner should regularly monitor the company's performance against that plan. Many a franchise has floundered because cash flow wasn't tracked or expenses got out of hand. If you're not skilled in accounting, you might outsource this function to an individual or firm that specializes in this area.

A prosperous franchise, like any other small business, is the result of hard work, business acumen, and perseverance. If you'd like additional ideas about starting or operating a franchise business, give us a call.

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