Entrepreneurship has never been more popular in the United States. While several business models exist for it, franchising has grown rapidly in popularity in recent years… and for good reason too!
Franchising allows entrepreneurs to be their own boss while also getting the professional training and ongoing corporate support they need to succeed. Essentially, it allows for the independence of small business ownership with the backing of a major corporation. In short, it’s the best of both worlds!
Succeeding as a new franchise owner, however, certainly seems daunting, even for the most experienced entrepreneurs. Franchising itself is a unique business model that requires a lot of dedication, hard work, and grit.
To make things easier for you, we’ve compiled 3 tips for new franchise owners for entrepreneurs looking to get into this exciting business model and take a shot at becoming their own boss. Take a look below to find out how you can succeed as a new franchisee!
Understand Your Market
This is crucial to success for new franchisees.
Be sure that you understand your target market and audience very carefully. It’s important to know not just who you’re selling to, but what your audience is like on a more granular level. To do this, conduct extensive market research into your audience. What is their average age? What’s their average income? What are their goals and pain points?
By better understanding all of this information, you can gather as much data as possible to better serve your market. In addition, it’s a good idea to talk to your franchisor in-depth about their target market as well as other franchisees in the business, or industry in general, to gain more insight into who your customers will be. By having a strong understanding of how your franchise fits into the target market, you can better serve your target market and thrive over the long-term.
Get the Right Financing
Franchises usually have an easier time securing financing compared to independent businesses, but this is something to consider very carefully and weigh your options.
Talk to your franchisor early to see if they offer any sort of financing options. You can also explore traditional bank loans, SBA loans, home equity, angel investors, and even retirement accounts like IRAs and 401(K)s.
Consider your options carefully and choose what’s best for you. Be sure to understand the terms of each financing option and pick the one that you believe will be the best option for you from a financial standpoint.
Pick the Best Location Possible
Finally, just as understanding your market and financing options is critical, so is your franchise unit’s location!
Choosing the right location can truly make or break a franchise’s success. If you’re a restaurant franchise owner in a major city, try to choose an area with heavy foot traffic and a large concentration of tourists. On the other hand, if you plan on opening an automotive franchise, look for locations along busy streets close to major highways.
In many cases, your franchisor can assist with finding the right location for your franchise unit. However, be sure to do your homework so you can better understand the options available in your area and pick the best location for your particular business.
Follow These Tips to Succeed in Franchising!
Franchising can be a challenging yet very exciting venture for entrepreneurs. Understanding the unique nature of how the franchise business model works is key. Be sure to follow these tips so that you have a better shot at succeeding in franchising and ultimately becoming your own boss too!