I’ve spent over 20 years working inside franchise organizations, both in entry level positions all the way to c-suite. Here are 5 tips for new franchise owners based on my experience.
Tip #1 – Align yourself with the top performers.
Every franchise organization will eventually (and perhaps quickly) evolve into a bell curve of high performers (top 20%), low performers (bottom 20%), and average performers (middle 60%). It is critically important to build relationships with the like-minded, high performers and avoid the negativity that often exists in the bottom 20%.
Tip #2 Recognize that mistakes = experience.
It’s ok to have high standards for yourself and for your performance; just make sure you give yourself room to make mistakes. Nobody’s perfect, and you will be far from it as a new business owner. If you go in knowing that you will learn from each mistake, that will be much healthier than riding the emotional roller coaster each time it happens.
Tip #3 Have a long term mindset.
If business ownership was easy, everyone would do it. Success worth having is usually hard to get and takes time. It requires commitment, risk-taking, and sacrifice. That’s why success that is well-earned feels so good! If things don’t go well in the first few months, respect the process and make sure to keep an eye toward your long term goals.
Tip #4 Be resourceful!
Successful people don’t wait for others to solve their problems. They are proactive, and they figure things out. One of the most common characteristics that I’ve seen in successful business owners is their willingness to roll their sleeves up and get stuff done. It’s unlikely that the training you will receive from the franchisor will anticipate every situation you will encounter – but it should give you a solid foundation to help you find the right solution.
Tip #5 Have accurate expectations of the franchisor.
Years ago I knew a franchisee named Scott that took over an existing, underperforming unit that had operated around breakeven for years. He quickly turned it into a very profitable business. When I asked him how he did it, he enthusiastically said, “You guys gave me ten things I should do. I did all ten; seven of them actually worked! Scott could have focused on the three suggestions that didn’t work, but he didn’t – because he had accurate expectations of the franchisor.
