Characteristics Of A Successful Franchisee
Anyone can get into franchising. It just takes the right mindset.
Yes, qualifications are desirable – but they aren’t essential. They won’t prove you’re a leader, a smart employer, or someone with an instinct for delivering high-quality services.
What is essential is that you possess the characteristics of a franchisee, such as dedication, analytical traits, and sound commercial awareness.
Knowing your own strengths and limitations is crucial when it comes to applying for a franchise business. Here, we’re going to run through the characteristics of a successful franchise owner, so you can determine whether it’s an investment worth making.
Excellent business communication skills
How do you speak to people? How often do you speak to them? Is your criticism constructive, and where could you improve it?
Fantastic leaders set clear goals and expectations for others, and they know how to act on their feet without getting too stressed. Their workforce then knows what it can do and how to treat every situation, whilst customers know what to expect from the service.
Equally, communication with the franchisor ensures you’re in line with their aims and way of working. By speaking your mind and listening well, you’ll stay on the same page from the very beginning of your relationship. Read our guide to business communication skills before starting your own business.
Reliability and trustworthiness
When you act reliably and make good on your promises to both clients and employees, you’ll earn their trust. Key business skills involve knowing what you can reasonably deliver, how much effort it will take, and the conditions you need for a fantastic result.
As a franchisee, you’ll be responsible for hiring people. The best franchisees tell it like it is. That means being upfront about the job, what it demands, the team culture you’re aiming for, and where they might align with other candidates.
When the team is ready, stay loyal and lead from the front. A franchise owner is most inspiring when they’re willing to muck in. Breaking down the employer/employee divide also cultivates a sense of openness, which leads to further trust and more fluid, immediate feedback.
Research suggests that trust accounts for 32% of an average worker’s loyalty to your business. By maintaining integrity and close contact, you’ll tap into this valuable emotional resource.
Wondering how to set up a business successfully? Be organised. It’s an indispensable trait that crosses into many areas of your day-to-day responsibilities.
An organised thinker can prioritise their time. You will ideally know what matters the most at any given period, giving it your full attention before moving on to other duties. Resources are allocated perfectly, neither overstretched or underserved.
Structuring your approach to work also makes it easier to choose, lead and delineate teams for certain projects. Having a strategy is one of the top characteristics of a successful franchise owner, so set performance goals and measure them over time.
If the obstacles change, so do the goals. It’s crucial to remain agile and deal with emerging challenges and opportunities as they come.
You can’t make waves in a market if you don’t know what you’re up against. For that reason, business tips for franchisees often include leveraging your commercial acumen – being strongly aware of your USPs, competitors and primary audience, and using that to your advantage.
Meanwhile, you will need to have a good understanding of payroll, invoicing, tax and bookkeeping duties. To keep cash flow stable, you should have a firm grasp of the money you’re expecting to receive and payout (and when), and have prepared a financial buffer in the event of late or missed payments.
This should all be noted in the business plan you present to your would-be franchisor. Your projected growth must be laid out with reliable stats that forecast your revenue. Reference our Rainbow guide to a commercial plan if you’re unsure what it is or how to build it.
Good with numbers
Lastly, maths shouldn’t scare you. The characteristics of a franchisee include a strong head for numbers, or the ability to find someone who can take care of this role for you.
Even if you opt for the latter, it’s still necessary to stay up to speed with accounting. After all, you are ultimately responsible for it. It falls to you to ensure that any and all evidence is collected and that the business’ money is managed effectively when it comes to rent, utilities, equipment, travel, insurance bills and more.
Being able to keep track of the numbers is closely related to your organisational capabilities. You’ll need to spare time for accounts work each week or month, finding ways to save costs and make appropriate investments.
Do you have the characteristics of a franchisee?
Buying a franchise might be a good decision for someone who ticks all of the above boxes. So, look back at your CV and professional history, and find the ultimate examples of the traits we’ve mentioned.
Let’s recap as we ask: what skills do you need to start a business?
- A high level of communication: Talking and listening to people comes naturally to you. Everyone’s objectives are crystal clear, along with the ways to achieve them.
- Reliability and worthiness of trust: Promises are delivered on. Processes are adhered to. As a leader, you don’t mind working on the ground with your team – but, equally, you place your trust in them to succeed too.
- Terrific organisational abilities: Information can be stored and tasks prioritised in your mind without much trouble. You’re on top of every aspect of your business and its management.
- Holistic commercial awareness: You recognise what makes your franchise branch unique. Your responsibilities and business plan become more focused as a result.
- A head for numbers: You are fastidious with monetary control, including income, debts and investments. You like to analyse the figures too, working out how they can be improved or adjusted.
If there are any weaknesses in your skills so far, strive to develop them. This will help your application in the long run.
Now you’ve read our business tips for franchisees, the next step is finding a franchise opportunity you’ll love. Rainbow International have plenty of territories around the UK – check out our franchises for sale currently.
When you’re ready to make a bid, speak to one of our representatives. Our industry-leading training programme – combined with unrivalled support and mentorship – is designed to create successful franchisees. You could be an amazing fit for our network.