I recently posted about the right leadership mindset for a successful executive franchise owner. In short, it’s all about getting out of your own way. Successful executive franchisees understand the importance of focusing on strategy, delegating day-to-day tasks, and trusting their team. That’s the big picture. In this week’s followup, I’ll share the tactical advice: how to build the executive franchise team you need to run a successful multi-unit business.
Step 1: Hire an accountant
It’s crucial to have all your finances in order from Day 1, so hire an accountant before you hire anyone else. They’ll take care of the day-to-day financial responsibilities so that you can focus on financial strategy and major money decisions.
Don’t assume that you can just use your personal accountant if you already have one. Personal and business finances must not only be kept separate, but they’re also very different. Your accountant should be able to run payroll for your business, pay your vendors, help you stay in compliance with tax laws, and advise you on day-to-day financial matters.
Also remember that business tax laws can vary from state to state. Especially if you are an area developer with a regional business, you may need to work with more than one accountant. At minimum, you’ll need a professional who understands how laws vary in each state where you do business.
Though this is an important hire, note that you probably won’t need a full-time, W-2 employee in this role. Using an accounting service or a self-employed accountant with multiple clients is fine, as long as they have the necessary skills.
Step 2: Hire a franchise manager
You should hire your first franchise manager within 60-90 days of signing your franchise agreement. This person will likely be the first full-time member of your executive franchise team. They’ll be your right hand as you launch your business and your day-to-day proxy once everything is up and running, so your rapport with them will be as important as their specific qualifications for the job. You must have full confidence in their abilities and be able to delegate major decisions and tasks to them.
My previous blog post, “How to Hire a Good Franchise Manager,” has general advice on where to find good candidates and how to select the right person. For an executive franchise specifically, you should look for someone who has four key qualities:
This first manager may need to directly manage multiple franchise locations, at least at first. But they will ultimately fill a “manage-the-manager” role, either as a general manager or someone who oversees team leads, so keep that in mind as you screen candidates.
Step 3: Hire the rest of your team
Some franchise models require only a manager. Others, however, require full teams of people to operate. A car repair franchise needs mechanics, for example, and a quick-service restaurant needs cooks and cashiers. For these types of franchises, your first franchise manager will need to hire site-specific managers or team leads, then oversee the process as those individuals hire rank-and-file employees.
Note that I did not say that you should hire these employees. At most, you should be involved in the process as a supporting partner to your franchise manager. For example, as my salon franchise business grew, I was available as a sounding board for my franchise manager and often helped her interview candidates for location-manager positions. But she was responsible for placing job ads, reviewing resumes, and refining the list of candidates, and the final hiring decision was in her hands. If you don’t feel you can do the same with your franchise manager, you’ve either hired the wrong person, or you’re micromanaging. Neither situation is good for the success of an executive franchise.
Aside from expanding the team that works in your franchise locations, you may also want to expand the team that works on your business. Many executive franchise owners, for instance, eventually hire an administrative assistant, marketing coordinator, or salesperson (sometimes all three!). As with your accountant, these hires can be W-2 employees or contractors, just depending on how much support you need. For instance, if you need marketing help with specific campaigns but don’t need the assistance of a full-time marketer, you can hire an agency or a freelancer as projects come up.
Step 4: Don’t forget your wider support network
In my opinion, the most successful executive franchisees think broadly when building their team. Aside from all the people who directly support your business, you need a wider network to support you. This network might include your fellow franchise owners; your spouse, other family members, or friends; or entrepreneur-focused organizations in your community, such as the Chamber of Commerce.
If you’re enthusiastic about the idea of building a team, that’s a good sign that executive franchising is right for you. My co-consultant Lauri and I can help you figure out if you also have the other qualities and skills needed to be a successful executive franchisee. Book some time with one of us today for personalized help getting started on your journey to freedom!
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