Many entrepreneurs join franchises and imagine being their own boss. A lot of them believe that they can easily make profits without much effort. But there is more to franchising a business than people think. Here are 10 things that being a franchise owner will require of you.
10 Things Being a Franchise Owner Will Require of You
More Money than You Think
Do you have enough money to become a franchise? Of course, being a franchise owner requires money. There are plenty of fees and investments that need to be made to the initial franchise. This doesn’t include equipment and other supplies you might need.
However, do you have enough money for the first few years that you open? Unlike any other business, you will not start off making a profit or breaking even. That is why having enough money to pay your living expenses is important. Having a reserve of extra cash will give you peace of mind until you start making a profit.
Really Know the Ins and Outs of the FDD
The franchise disclosure document (FDD) contains large amounts of information about the franchise you are considering. This is the difference between you making a genuine, well-informed decision or wasting your time. Reading this document helps you understand the financial well-being, regulations, and rules of the franchise. If you are new to the franchise world you might consider hiring an experienced attorney or consultant to help understand the document.
A Will to Learn
Everyone is guilty of this at some point or another. Not willing to take advice or thinking we know everything. However, no matter how much experience you might have in the same field, being a franchise owner is entirely different. It is imperative to realize that there are constant emerging tools and strategies to running a business. Being willing to take advice, hire the right personnel, or adapt to new technology and proven methods is a huge factor in success. Without a willingness to learn your business might crash and burn.
Determination and Positivity
Despite the failures or mistakes, remember to stay determined and positive. Keep in mind the reason or long-term goal you have for yourself helps you persevere through difficult times. Determination and positivity will go a long way to help you through the rough patches and encourage your employees. Dwelling on the past or current failures will only serve to keep you where you are or set you back.
Hard Work and Long Hours
Many people consider owning a franchise because they believe it will make their lives easier. They’ll get to make their own schedule and only have to work as much as they want. However, in reality, they may find themselves working upwards of 80 hours a week. Running a franchise, especially a new one, takes a lot of time and effort. Even more so if you do not have a partner to help with the burden. Learning how to market, advertise, and run your business correctly will require research. There will be many long nights away from family and plenty of missed events.
You’re the Boss
One of the big things you will have to remember is you are the boss. For example, you might have to fire or turn some people down for jobs. These difficult decisions are made by you, meaning you have far more responsibility. Despite that, you have to do what is best for your business. Being a franchise owner requires you to make tough daily business decisions.
But You’re Not the Boss
While you are the boss of your branch of the franchise, you still answer to the owner of the system. This means you still need to keep up with the rules and regulations they established. Depending on the franchise, they may have certain menu items or specific ways to do things. The point in all of this is to maintain consistency through the franchise with its services and products. This may mean you will have to buy certain supplies and other materials from corporate to stay associated.
Working with Numbers
You might think that you can hire people to do work that you don’t want to. This is actually true in some cases such as hiring an accountant or marketer. However, you will still need to keep up with rent, supplies, technology, and more. Overall, being a franchise owner requires you to keep up with regular finances to make sure your business stays afloat.
Being a franchise owner will require networking to establish clients and market your business. It would be helpful to have a personality that makes people want to work for you. Additionally, building good relationships with your customers keeps them coming back. Loyal customers sometimes make the best advertisers by recommending you to their friends. Thus, driving more traffic to your business.
Trust is important in any business or professional relationship. You need to be able to trust your employees and the people above you. Trust creates a better atmosphere for learning and cooperation. Even helping your customers build trust in your product by providing good services goes a long way toward helping your business.
If you think you have what it takes to be a franchisee, consider DetailXPerts. We are an eco-friendly auto detailing company that excels in the industry and supports you from beginning to end.
Interested in exploring the unique franchise opportunity that DetailXPerts offers? Sign up for our monthly newsletter to stay updated on all things franchise!