There’s no shortage of information on how to achieve franchise success. Some of it is strategic, some is tactical. Some has to do with how you set up the franchise itself, and some has to do with your personality or goals. In reality, everyone’s path to success looks different. But I’d like to share what’s worked for me, in the hope that it will be of some benefit to you.
After spending more than 20 years as a corporate executive, much of it as a turnaround or growth specialist, I made the switch to franchising and small-business leadership. I wanted more control over my work, more freedom to create my own path, and a more personal stake in the growth of my employees. Over the last 10 years, I’ve realized that certain principles have served me well across the board, whether I was working for someone else or opening my own business.
Do Your Research
I believe the old saying that “Fortune favors the bold.” But I also believe in making informed decisions. Jeff Bezos, the founder of Amazon, has a smart way of balancing the need for information with the need for action. For most decisions, he moves forward once he feels about 70% confident that he’s on the right path. The less reversable the decision is, the more information he gathers before he decides. The more reversable the decision is, the more willing he is to act before he reaches that 70% threshold.
To achieve franchise success, here are a few key ways you can put this principle to work:
- Evaluate your own resources and motivations. How much money can you invest, either from cash or loans? Why are you considering this path?
- If you’ve never been self-employed, talk to some entrepreneurs about their challenges and victories. Also read up on finances and taxes.
- Read books or watch videos about how the franchise industry works, and make sure you understand the various types of franchises. Know the red flags to watch for.
- When you start investigating particular franchisors, ask hard questions. Make site visits and talk to current owners whenever possible.
- Learn about your franchise’s industry. Know who your competitors are and how they do business. Research potential locations and best practices for marketing and other business activities.
Set Measurable Goals
I’m always more successful when I set goals for both myself and my franchise, and revisit them regularly. Especially when I first open a business, I like to set weekly or even daily goals to help keep myself on track. I pair those with monthly, quarterly, and annual goals to make sure I don’t lose sight of the forest for the trees. Then I re-evaluate my goals regularly, to ensure they’re still relevant to my life and business.
To increase your odds of franchise success, I recommend using a framework like the SMART method for goal-setting: make your goals specific, measurable, attainable, relevant, and time-based. For instance, instead of saying, “I want to grow my business,” say, “I want to launch a new location each year for the first three years.” Break big goals into smaller, SMART goals. If you want to retire early, for example, figure out how much money you need to make that possible. Then set specific targets and timelines to make it happen. For instance, you might aim for achieving $5M in revenue within five years.
Never Stop Learning
I’m always more fulfilled, both personally and professionally, when I take advantage of every opportunity to learn. I try to learn about my industry, new marketing tactics, current events that affect my business–you get the picture. There are many ways to do this. I like to keep an eye on the news, talk to smart people I know, and read articles or books that are relevant to my business. You might like to read, too, or you might prefer to watch videos, such as TED talks. Other good ways to learn: have coffee or lunch with other professionals, or attend trainings and conferences, either in person or online.
As you learn, keep two key principles in mind. First, failure is inevitable, but it’s also a learning opportunity. The road to franchise success is almost never completely smooth. You or your employees are going to make mistakes, whether large or small. You might blow a deadline on a customer’s project, miss your monthly revenue target, invest in a product or service that flops, or even have to close a location or your entire business. Don’t give up. Instead, ask yourself what you can learn from the experience, and do things differently the next time.
Second, don’t confine your learning to franchising or even business. When you expand your horizons, you boost your creativity and problem-solving skills. You exercise new parts of your brain, which makes it stronger overall. My role requires a lot of strategizing, meetings, and financial planning. I like to balance that by working with my hands, doing carpentry projects around the house. You might enjoy painting, gardening, or tinkering with old cars. Or if your franchise work requires a lot of physical activity, think about balancing it with some brain work. Read about history, science, or other subjects that interest you, or watch some documentaries.
Surround Yourself With Smart People
One of the most important lessons I’ve learned? The benefits of seeking out and building relationships with smart people in every aspect of my life. I learn so much more when I am not the smartest person in the room! And my businesses are more successful when I hire employees who are different from me. To put this principle to work in your franchise, think about who you are as a person and a leader, then hire people to complement your skillset. If you’re a strategic thinker, hire people who like to execute. If you prefer to launch and grow things, hire people who are good at maintaining. Don’t gravitate toward “yes” people–hire individuals who will productively challenge your ideas, and listen to them. Also keep in mind that people who are younger/older than you, from a different background, or of a different race or gender can bring valuable differences in perspective to the table. They may teach you how to solve problems in new ways or reach a wider customer base.
This principle also matters in your personal life. I find that I’m happier and more successful when I associate with people who bring out the best in me. I definitely benefit from spending time with friends who challenge me and stretch my abilities. People who have an honest understanding of my strengths and weaknesses can help me capitalize on the former while minimizing the latter.
Take Care of Your Employees
One of the most important lessons I’ve learned in my career: take good care of employees. When I care about the people who work for me, success is far more satisfying–both for me and for them. Researchers spend entire careers studying how to be a good leader, so I don’t pretend to be an expert on the subject. But I have noticed that I get along better with my employees, enjoy our achievements more, and reach higher levels of success when I do the following:
- Take the time to learn everyone’s name and a little bit about them, and show compassion when they experience work or personal challenges.
- Provide a safe space for failing. If an employee makes a good-faith effort but screws up somehow, I try to help them learn from the experience instead of punishing them. This approach helps encourage growth and trust that end up benefiting the business.
- I love to find employees who have potential and provide chances for them to learn new things or take on more responsibility. It’s one of my most fulfilling roles as an employer. Bonus: employees who feel like they have an opportunity to grow are more likely to stay with the franchise and contribute to its success.
- Whenever I can, I pay people what they’re worth. If I can’t pay a competitive salary (e.g., because the business is just starting out), I try to offer bonuses for bringing in new customers or reaching revenue targets.
- I do my best not to micromanage. I believe that, if I’m careful about my hiring, I should be able to trust my employees to do their jobs. Though I tend to watch new hires carefully to make sure they’re competent and trustworthy, I eventually hover up and focus on just being a resource. If I try to monitor every little thing my employees do, I never have time for the things only I can do.
- I learned from some wonderful leaders to take none of the credit and all of the blame. What does that mean in practice? Employees are crucial to a business’s success, and they deserve to be rewarded for it. On the flip side, bad employees can hurt a business, but they won’t take it down completely–only bad leadership can do that. If your business is struggling, first ask yourself what you can do differently.
Take Care of Yourself and Your Family
Starting a franchise can be a grueling business. I’ve had to put in long hours and work my brain (and even my body) pretty hard. I learned earlier in my career, however, that such a pace is not sustainable long-term. Overwork raises your risk for all kinds of mental and physical illness. In addition, it hurts your marriage, your parenting, and your friendships. Franchise success won’t be very satisfying if you’re too sick to enjoy it, or have no one to share it with.
So as you’re building your business, remember to invest in your health and your relationships. Whenever you can, eat healthy, sleep well, and be physically active. Try to set aside regular time for family or socializing, even if it’s just an hour here or there. Even if you’re really busy, you can create small rituals to maintain balance. Can’t do a normal workout? Take a 10-minute walk around your parking lot every day. If you have to miss dinner most nights because you’re working late, drive your kids to school each day or schedule a weekly coffee with your spouse or a friend.
Stay Involved and Aware
Unless you become independently wealthy (which can happen), remember that franchise success is not a permanent thing. Your business requires active management to remain strong. Even if you’re a semi-absentee owner, you should still stay involved and aware of what’s going on. I recommend regular checkins with your accountant and any managers who oversee your brick-and-mortar location or service team. These can be mostly virtual, but you should also make occasional in-person visits. I find that I gather more information and establish better connections with vendors and employees this way.
Remember, as long as a business is open, it can close. And one of the surest ways for your business to fail is for you to get into a position where you’re always reactive, rather than proactive. Staying involved makes you aware of problems when they’re still fixable, before they significantly affect customers or revenue. It also creates accountability for employees. I always try to remember one thing, though: if I’m not working in the business every day, my employees probably know more about it than I do. I do my best to treat them with respect and listen to their expertise–after all, they’re my business’s most valuable asset.
I understand that franchise success is an ongoing process. That’s why I remain available to my clients even after they launch their businesses. So no matter where you are in your franchise journey, I’m here to answer your questions, provide encouragement and support, and help you determine the best steps for you and your business. Ready to talk? Book a call with me today!
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