Between enhanced work-life balance, a built-in support system and the chance to make a lot of money, it is easy to see why transitioning from the workforce to franchise ownership can be a great move for your career.
However, after you make the move, things can become a little more difficult. In order to achieve success as a franchise operator, the following five challenges of owning a franchise will require hard work, determination and perseverance.
Committing To The System
As an entrepreneur and business leader, it is only natural that you would want to put your stamp on your franchise. However, it is important to remember that one of the biggest advantages to owning a franchise versus an independent business is the fact that you can take advantage of an operational model that has already proven to be successful, and you need to stick to that model in order to maximize your own success.
In fact, a lack of commitment to the franchise model is the number one reason why franchises fail.
Wearing Multiple Hats
Whether you are an expert in sales, operations, marketing, accounting or another discipline, when you become a franchise operator you’ll need to become an expert in all of them — and more. Being the head of a franchise means playing a lot of roles and carrying a lot of responsibility, especially when first starting out.
You will be a CEO, sales executive, recruiter, marketing director and accountant, all rolled into one.
In addition, the role you play may need to change by the day in order to accommodate your customers and changing business requirements. As dynamic and exciting as this sounds, it can also be quite challenging for new franchisees. Fortunately, new franchise operators have a great resource for overcoming this challenge — existing franchise operators. It is important to tap into the knowledge and experience of these experienced franchisees.
Keeping Your Cash Flow Flowing
Cash is crucial to the success of a franchise; if you don’t have it, then you can’t take advantage of franchise growth opportunities or overcome shifts in the economy. Therefore, as a franchise operator, you will constantly need to plan ahead in order to stay ahead when it comes to your finances. Make sure you are always a step ahead by putting together a comprehensive franchise business plan. You can even take advantage of free business planning resources to make the process simple.
Nobody goes into business to become an HR expert, but when you are in charge of hiring, firing, motivating, engaging and developing a staff, that’s exactly what you’ll need to be. Taking the time initially to build a great franchise team will make it a lot easier to handle all of the other aspects of personnel management down the road.
Many franchisors are more concerned with maximizing revenues for the system than with ensuring individual franchisees are able to maximize their own revenues. That’s why they will allow multiple franchise operators to open up in close proximity to one another, creating friction and stress.
Thus, it is important for you to do your homework and find out whether or not you will receive franchise territory exclusivity before making an investment.
Selecting The Right Franchise Makes Succeeding A Lot Easier
Owning and operating a franchise can be difficult. That’s why it is so important to invest in a franchise that is dedicated to making your life as a franchisee as easy as possible, especially when it comes to these five challenges of franchise ownership.
For example, at Bin There Dump That, we offer comprehensive franchise training to help you not only understand our system, but take full advantage of it. We also provide ongoing and continuous support, giving you access to the advice, answers and expertise you need, when you need it.
Our franchise leadership team can help you with all aspects of your business, including marketing, hiring, scaling, planning and more. Lastly, our franchise territories are well defined and well populated, positioning franchise operators for success without the fear of encroachment.