Going with an existing franchise is a popular choice for many people looking to start their first franchise business. This is because, since you are opening up a new location of an existing business, there are typically lower startup costs involved, along with some assistance from the company.
However, opening a franchise business isn’t necessarily easy, even with these advantages. There are many obstacles to overcome if you want your business to succeed.
Below, we offer some tips you can use to make your franchise business more likely to succeed.
1. Explore Different Franchise Industries
A great place to start is by exploring all the different franchise businesses available to you. You may already have one, but that doesn’t necessarily make it the best one.
One thing you can do is explore franchises in an industry in which you have an interest or experience. For example, if you have a history as an auto mechanic, you may want to explore an auto parts franchise.
The other thing you can do is explore businesses in a growing niche. For example, you may want to explore a cleaning business franchise due to a larger focus on healthy and clean work environments lately.
When exploring franchise options, learn about the products and services they offer and how they typically reach their audience. This can help you formulate a list of franchise opportunities to explore.
2. Research Franchise Requirements
Once you have a short list of some potential franchise options, the next thing you’ll want to do is explore that franchise in-depth.
Mainly, you’ll want to thoroughly research the requirements of owning one of those franchises. For example, some companies have requirements regarding where you can locate your franchise, the types of fees you need to pay, what you can charge for products, and how you can market your services.
Understanding all the franchise requirements is essential before you decide to purchase a franchise. Some companies have very restrictive requirements, and you don’t want to learn about them after you sign the paperwork.
3. Conduct Market Research
Whenever you open a franchise, you must do it in the correct location. You want to open your franchise in a place where it can thrive. This means you need ample potential customers in the area and a reasonable amount of competition.
For instance, you don’t want to open up your new restaurant franchise next to a similar restaurant that is already struggling to attract customers.
Spend plenty of time learning about the area in which you want to place your franchise. Learn about the types of people who live in that area, including their income levels, preferences, how they spend their money, what they do for a living, and more.
The more market research you do, the better you’ll have at discovering whether a franchise can survive in that location before spending any money.
4. Start Marketing Early
Once you are in the process of opening a franchise, you’ll want to start thinking about your marketing strategy. Marketing is a key aspect of any new business, as you need to let your audience know you exist.
Start promoting your franchise early through strategies like an SEO campaign or by using social media, as it can take time to get the word out. This way, once your franchise is up and running, enough people will know about it, and you’ll have a solid starting customer base.
5. Take Time Hiring Your Initial Team
Finally, you’ll likely need to make some hires to help you run your new franchise since doing it alone is a tall task. These initials are essential, as they can determine whether your franchise thrives or not.
In the beginning, each person on your team has a bigger role in determining how well your franchise operates. Therefore, you really want to spend significant time on your first hires.
Carefully consider their backgrounds and experience before scheduling interviews. Then, during interviews, ask in-depth questions that help you learn the most about them.
How to Start A Franchise Business Right
You only get one opportunity to start this new franchise off on the right foot, and how you start your franchise plays a significant role in how it will ultimately perform. Here are some tips to start your new franchise business right:
- Explore different franchise industries.
- Research franchise requirements.
- Take time hiring your initial team.
By using the tips above, we hope that you’ll be able to make smart decisions regarding your new franchise and that you’ll be able to establish a strong foundation on which to proceed.
I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.