Franchising is unique in the sense that it requires a vast network of responsible, accountable leadership, instead of depending on a sole individual to provide direction for the business.
Although a great deal of ambition is necessary in order to succeed as a franchisor, a common misconception is that you need to have all the characteristics of an entrepreneur to put together a solid franchise system. On the contrary, sometimes entrepreneurs may not make the best franchisors – particularly if they fail to navigate some of these common issues many entrepreneurs face:
Sometimes entrepreneurs get so caught up in their day-to-day duties that they seem to have blinders on to everyone around them. However, if you try to take on all the responsibility within your franchise business and refuse to delegate, your business will not be successful.
As a franchisor, you need to constantly check in with your franchisees and other employees to delegate tasks and receive input. Of course, you should be confident in your abilities to optimize business practices for your franchisees, but you also need to be aware of your limitations. Franchisors depend on delegation to keep their business up and running efficiently – you cannot run a successful franchise if you are unwilling to give up some responsibility and control to those working for your brand. You have an expansive network of people who can help improve your franchise business, so use them.
While one of entrepreneurs’ biggest strengths is their ability to dream big, this can also often times be their downfall. Creativity and innovation are key for any business, but if the entrepreneur does not have realistic goals and expectations in place, their business will inevitably fail. The same is true for franchisors.
For a successful franchise business, you should have a creative concept that rises above the competition. However, you need to make sure your concept does not fit into too small of a niche. Franchises have the potential to expand exponentially, so when executing your concept, make sure that it is scalable and has demand across markets.
Taking Too Many Risks
Risk-taking is often necessary for entrepreneurship. But similar to setting realistic expectations, it’s important to know when to ground yourself.
In ensuring your franchise has the capability to grow, you also need to make sure you have enough capital to sustain this growth. Do not spread yourself too thin and hope that it will eventually pay off, since this will only set you and your franchisees up for failure. Similarly, make sure you have a concrete and specific business plan, so that both you and your franchisees can stay motivated and focused on executing the model.
The same qualities that make an entrepreneur successful may make for an unsuccessful franchisor. In order to sustain and grow your franchise business, make sure you don’t make the all-too-common mistakes of trying to do everything yourself, setting unreachable goals and taking unnecessary risks.
At Winmark Franchise Partners, we can help your business expand into a successful franchise by providing the guidance you need. As a franchise incubator, we have the knowledge and capital to get your brand on the right track. If you are interested in franchise growth, contact us at (844) 452-4600.