From employee to franchisee – Do you have what it takes to be the boss?

How do you determine if you and a franchise are suitable for one another? Perhaps you should begin by asking yourself the following questions, to gain insight into how your own personal approach to business aligns with the operational procedures and responsibilities associated with running a franchise, as well as the emotional components that can arise from such a business structure.

• Do I mind having many of my business decisions (eg location, hours of operation, inventory, and marketing) made by other people, or will having these decisions made for me actually ease my burden in running a business by freeing up my time and energy to take care of other matters?
• Do I work best within a structured system, as it tends to keep me focused and potentially relieves me of stressful responsibilities that I’d rather not have, or is the overall structure of a franchise too inflexible for me?
• Does my general personality mesh with being a franchise owner? Can I be a leader as well as a follower? Do I have an upbeat can-do attitude that all good business owners possess, regardless of the organisational structure of their company?
• Is buying into a generally lower risk/higher profile business a personally acceptable tradeoff for the potential loss of control and/or input that’s often associated with a franchise business structure?

The bottom line is that a franchise owner is a unique blend of an individual that is both interested in running their own company and one that appreciates the value of input and expertise from those who have already gone through the process. Their contribution to the world of business, while no less important, isn’t based on their need to reinvent the wheel or build a better mousetrap. They’re as content to follow through on directions given to them from the franchisor, as they are to give guidance and direction to their employees. They also accept that being in business involves risks, although these risks are generally lower than being in business by yourself.

Finding the right franchise opportunity
The right franchise opportunity provides a fast track to owning a successful business of your own. As a franchisee, you have the support and resources of a large company. This includes help from experts in training, marketing, and all other phases of the business. You have the benefit of established brand recognition and more advertising than you could ever afford on your own. More importantly, franchise owners are presented with a proven, step-by-step system of a successful business model. In exchange for these benefits, you agree to follow that system.

Franchise owners are not necessarily entrepreneurs
One common myth about franchising is that franchisees have a strong entrepreneurial spirit. While franchisees do have much in common with more traditional entrepreneurs who start their businesses from scratch, you do not have to be an entrepreneur to operate a franchise. In fact, the typical entrepreneur would likely become quite frustrated as a franchisee. True entrepreneurs are extremely independent thinkers and tend to fight the system. Franchise owners are more comfortable working within a system and are better able to take direction from others.

The franchisee exchanges entrepreneurial independence for a greater degree of business security. How much greater? Industry experts point out that the failure rate for new franchisees is only about 20%; businesses started by entrepreneurs have a much higher rate of failure. In fact, over 80% of all new non-franchised businesses fail within the first five years. The reason behind the overall success of franchising is simple: the franchisee is generally buying into a proven model where most of the mistakes have already been made; and systems have been developed to help others avoid making them. Also, the franchisor knows that the success of the company depends on the success of the individual franchisees. Failing in a new market makes the brand look bad and costs the franchisor money. The franchisor will do everything in its power to see that each new franchise becomes a success. In exchange for this security, franchisees must be willing to follow the system.

If you are the type of person who does not enjoy taking instructions from others, then you may not be happy as a franchisee. If you appreciate having established guidelines and don’t mind working within a system, then investing in a franchise opportunity might be the best choice for you.

The unmotivated need not apply
As a franchise owner, you are the boss. No one is going to tell you to get to work or when you need to stay late. Successful franchisees are self-motivated, self-disciplined individuals who work well without supervision. They draw from an inner-motivation that comes from their own personal pride and the desire to succeed.

Motivation isn’t just about what you want; it is also the measure of how much you want something and what are you willing to do to get it. Highly motivated people do not spend a lot of time basking in their accomplishments. As soon as they reach one goal, they move on to another. Their goals also tend to grow over time. A potential franchisee might set an initial goal of buying a franchise and getting it off the ground. Once that is accomplished, he or she would set specific performance goals for each quarter, along with annual goals for improvement. Each goal is higher than what has already been achieved. Motivated individuals always want to have more and to be better.

It takes money to make money
Franchise opportunities require some initial investment. Depending on the franchise, the purchase cost may range from thousands to several hundred thousand dollars. To this is added the expense of purchasing equipment, supplies, and other overhead costs. The goal of the franchisor is to maintain a consistent product. Cutting corners is not allowed. In many cases, the franchisee is required to purchase supplies through the franchisor. If you are going to open a franchise seafood restaurant, the franchisor will provide the exact type and size requirements for all your cooking and refrigeration equipment needs. Similar requirements exist for most franchise opportunities.

Potential franchisees should consider their personal financial situation before they purchase a franchise. Can you afford this investment? It will probably cost you more than you expect and it may not deliver an income immediately. Can you afford to live without an income while your business gets started?

Knowledge and experience
Your knowledge and ability to perform inspires confidence in your employees and customers. Franchise owners must be able to roll up their sleeves and do any job in the business, whether that means working behind the counter or in the back office. Understanding the job allows you to accurately estimate how long a specific task should take and to better evaluate the performance of your employees. It also allows you to pitch in when a job needs to get done. This doesn’t mean that you have to limit yourself to franchise opportunities directly related to your previous work experience. Franchisor training can provide many of the specific skills that you will need to know. You must, however, be willing to learn.

Franchisees need a thorough understanding of how to run a business, including an understanding of finance, marketing, accounting, and other business skills. You must also have the necessary people skills to work with the public and with your employees. This type of training is not typically provided by the franchisor. If you lack these skills, then you may want to take the appropriate training or reconsider whether a franchise opportunity is right for you.

Being stubborn can be a good thing
Call it stubbornness, tenacity, or being a stickler; the successful franchisee has what it takes to withstand the normal peaks and troughs of business. All business owners face setbacks. The difference between the success and failure of a business depends largely on how the business owner or franchisee handles these situations.

Like the successful entrepreneur, the successful franchisee has a vision of the potential of the business and the unfailing belief that the franchise can get there. This tenacity also applies to getting the job done. Whether it is meeting the weekly payroll or working towards annual goals, successful business owners refuse to give up until the job is complete.

Working for yourself without working by yourself
In many ways, the franchisee is an odd mixture of business owner and employee. You have the responsibilities and benefits of owning your own business. At the same time, you have the advantages of an established corporate structure. Along with those advantages comes the responsibility to follow orders and to live by the rules of the franchisor.

The franchise system offers some incredible opportunities for those who have what it takes to be a successful franchisee, and are willing to follow the system and work with the franchisor in developing the business together.

Does that sound like you? If so, you might just have what it takes to be a successful franchise owner… as well as a happy one. But franchising isnÕt for everyone. So as you consider which franchise opportunities might be right for you, you also need to consider whether you have what it takes to be a successful franchisee and if you are prepared to take risks.

Finally, if you are looking for a business with no competition, no risk and a guaranteed income, save yourself the time, money and heartache – it doesn’t exist.