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Essential Tips for New Franchise Owners

According to a recent survey, more than 66% of Americans have plans of opening and running their own businesses. This has led to the introduction of different business models. And franchising is one of the business models increasingly gaining popularity among entrepreneurs. In fact, over 750,000 American businesses currently run on the franchise model.

Unlike starting a new business, purchasing a franchise has lower risk since you operate under an established business. You also benefit from the strong brand awareness and existing customer base, making it faster to start generating profits. Despite the many benefits, franchise accounting can be extremely difficult for new franchise owners.

Keeping a good eye on the cashflow is crucial for your success, especially in the early days of purchasing a franchise as well as in the growth stages. That’s why you should work with a qualified accountant to help with your accounting tasks to ensure the success and growth of your business. Besides hiring the best franchise accountant, here are other great tips that can help ensure your success as a new franchise owner:

1. Know Your Market

One of the best tips to help you thrive as a new franchise owner is gaining an in-depth understanding of your market. It’s critically important to know the market you’re entering, whether you’re looking to buy or your new franchise is already up and running. Do extensive research to learn about your new industry and understand your local market to help you determine how you can best serve it. Your fellow franchise owners can be a great source of insight into your chosen industry.

Apart from talking to other franchisees, join associations and attend meetings where franchise owners come together and share ideas. Local trade boards and associations regularly bring business people together, which can be a great way to learn about your market and network with established franchisees. Regularly review your market to stay on top of key trends and changes that could impact your sales.

2. Choose Your Location Carefully

Like any other brick-and-mortar business, the location of your franchise business can contribute greatly to its success. Research your chosen location to determine the demographics of your customers in that area and whether it will yield more business. For instance, if you’re looking to purchase a franchise restaurant, setting it up in a business, financial district, or touristy area can help you achieve high foot traffic. When choosing an ideal location for your franchise business, make sure it has easy accessibility or driveability and high visibility to ensure it thrives.

3. Focus on Hiring the Right Team

Hiring the right team as a new franchise owner can make running your business easier and ensure that it grows and thrives. Ensure you hire the right team and equip them with the necessary skills and knowledge to succeed in their roles. Leverage any support your franchisor offers to ensure a smooth and efficient hiring process. This can include hiring materials, onboarding materials, and training programs.

Maintain clear communication throughout the hiring process, from detailed training programs to precise job descriptions. Besides offering training programs, ensure that you choose candidates who best fit your business profile and have a good attitude. The respect and enthusiasm you show your new hires can also help create a positive workplace culture, making them more productive and more satisfied at their jobs.

Endnote

Purchasing a franchise is one of the easiest and fastest ways to get into entrepreneurship. Not only do you benefit from the trust and recognition of an established brand, but you also get the support of experienced mentors. Following the tips above can help you hit the ground running and establish a solid foundation for your business, ensuring your success and growth as a new franchisee.