Q:
I'm thinking about buying a franchise business, but I'm not
sure what it takes to succeed as a franchisee. What are some of the
characteristics or skills I need to increase my chances of
success?
A:
This is a marvelous question, and one of the most important things
to focus on as you contemplate a move into franchising. There are
five key characteristics that, more than any others, determine
success as a franchisee. They are:
1. Risk aversion: Many people think that to succeed as a
franchisee, you need to be a gambler. Nothing could be further from
the truth. If you want to gamble, go to Vegas.
Content Continues Below
Successful franchisees are risk averse. They are willing to take
some risk but want that risk to be as small and controlled as
possible. Any business start-up involves some risk of failure, but
a strong franchise with a proven track record of success will
minimize this risk. Successful franchisees do their homework, so
they know what they're getting into.
2. System orientation: Don't shy away from
franchising because you assume you need a burning entrepreneurial
spirit to become a franchisee. That's simply not true.
Entrepreneurs have an almost uncontrollable urge to reinvent the
wheel based on their incredible confidence in their ability to
figure out how things should be done to maximize results.
Successful franchisees, on the other hand, want proven systems.
They don't want to have to figure out the best way to do
something. They want a system of operation that tells them the best
way to do anything associated with the business. They are willing
to learn from others to avoid making mistakes, so they can be more
successful more quickly.
3. Coachability: The motto of franchising is "In
business for yourself, not by yourself." Successful
franchisees look for opportunities to learn from others in their
franchise system. Their philosophy is: When in doubt, ask. They
constantly ask advice of the franchisor support staff and other
successful franchisees and follow the advice they get. They
understand that they don't know all the answers and are willing
to ask for help when they need it.
4. Hard-work affinity: Successful franchisees have a
willingness to do whatever it takes to get the job done. This
attitude shows in their every action--putting in long hours,
handling multiple tasks. No matter what franchise you're
interested in, you can be sure it's going to take work to make
it successful. The best franchisees know and accept that fact.
5. Strong people skills: Successful franchisees always
have excellent interpersonal skills and can effectively interact
with their employees and customers. They use these skills to create
loyalty, value and trust. Though this characteristic is listed
last, it's probably the most important of all.
As you review this list, be honest with yourself. Do you already
have each of these characteristics? If not, can you focus on
applying yourself to developing and effectively portraying these
characteristics through your actions?
If the answer to either of these questions is yes, you're on
your way to becoming a successful franchisee in your own right. As
always, take the time to thoroughly investigate any franchise
opportunity to make sure the track record is strong and dependable,
and you'll be set.
Jeff Elgin has almost 20 years of experience in franchising,
both as a franchisee and senior franchise company executive. He is
currently the CEO of FranChoice
Inc., a company that provides free consulting to consumers
looking for a franchise that best matches their needs. He can be
reached at jelgin@FranChoice.com.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.