Franchisees usually manage an established business, oftentimes the type that requires a license. They prefer to deal with the specifics of their business, and they are good at evaluating its practical course of action. As a rule, they do not focus on business ideas that go beyond their company’s established functioning. Franchisees can increase productivity in their business by making the best use of resources at hand.
Franchisees are reliable, responsible, and practical. They communicate easily with others and enjoy interacting with people.
Franchisees should be very careful if they decide to significantly expand their business. Expansion requires steady, persistent effort, and they do not always have the needed leadership qualities.
The largest comfortable business magnitude for the Franchisee type: Medium
Necessary Steps for Success in Your Business
Do not rely solely on yourself when assessing your situation. It is necessary that you get opinions of experts in your field of choice. As well, try to learn as much as possible about the kind of business you intend to start. Make sure you are aware of the difficulties typical to the business. Try to determine if these challenges are primarily caused by inadequate management, or if they are inherent in the business itself. Then, assess your ability to cope with these difficulties.
As a rule, you will not have much opportunity to radically change this kind of business. Therefore, you need to thoroughly consider the potential and profitability of the business you intend to buy, as well as your own ability as a manager.
Usually, your business is locally situated, but targeted at a wide audience. Therefore, you should run your advertisements locally, rather than nationally or internationally. Advertising through customers' word-of-mouth and testimonials is especially important. Try to understand how your goods or service can meet consumers' needs – then, design your advertisements to target these needs. Always be in touch with your customers, and send them catalogues and samples of your goods.
It is also important to create and support your business' brand. Give your business a name that reflects your own name, or one that expresses the essence of your company. Develop a logo or a picture that represents your business. Create and run advertisements. Distribute branded pins, fridge magnets, and similar items to your customers.
Try to personalize your relationships with your customers. Make sure they feel that you are selling your product to them personally, considering all of their wishes and demands. You can offer the customer an additional, complimentary service. As a result, the grateful customers will buy your product repeatedly and will recommend your business to others. There are many ways for you to show your interest and friendly concern for customers – these include sending them small gifts, giving useful advice about your product, and inviting them to special events.
Keep in mind that you should not push your product too insistently to potential customers. However, you can point out your product's advantages and why it would be especially useful to them. Explain the product's different uses and make recommendations for its maintenance. If customers trust you, then they will trust your product as well. If they are confident in your skills and knowledge, then it is very probable that they will return for repeat purchases.
When you buy an established business, you acquire its contacts, contracts, and customers, which saves you a lot of time and effort. However, purchasing a business requires a considerable investment right away. There is a substantial risk of inadequately assessing this business’ profitability, as well as serious potential losses. Therefore, it is vital to accurately assess a business’ potential before purchasing it. To help you do this, you should ask for opinions from experts in the field. Since your company’s productivity depends mostly on your own efforts, you should assess whether or not you have ability to attain your required level of income. You also need to determine if expanding the business you want to buy is legal and realistically doable.
If you come to the conclusion that you need to expand the business, make sure to thoroughly consider possible pathways for expansion. Then, you can choose the most effective route to achieving your goal. Sometimes, it makes sense to buy a few additional licenses or businesses in the same field. In order to expand the business, you may need to hire and manage employees. The Franchisee is not particularly well-suited to doing this; however, the Innovative Manager is good at such tasks, and thus could make a good partner. You should be cautious if you plan to expand your company into new, non-established fields of business. This type of expansion is generally unfavourable for the Franchisee, so it could be very risky for you.
It makes sense to periodically invest in new, modern equipment. This will help increase productivity and thus profitability in your business. It is especially important to invest in advertisements to attract more customers.
Businesses Favorable for the Franchisee
Businesses that the Franchisee can successfully run on his own may include any franchise or established small business, such as, but not limited to:
- Delivery service
- Taxi service, or Uber
- Small retail store
- Convenience store
- Laundromat or Drycleaner
- Fast food restaurant
- Cobbler service
- Beauty salon or spa
- Rental property
Complete the Entrepreneur Quiz and get the premium version the premium version of the results including:
- Your “exact” (=most likely) entrepreneur type.
- Examples of franchises favourable from your entrepreneur type standpoint.
- If applicable, what kind of business partner, in terms of his or her entrepreneur type, you can benefit from partnering with, and examples of occupations for such partnership.