SUCCEEDING IN THE RETAIL FRANCHISE BUSINESS
Retail sectorAuthor :
Donna Messer 
Donna Messer is a networking expert. She is the author of “Effective Networking Strategies” a Canadian Best Seller. Donna is a motivational speaker, addressing audiences on three continents. To reach Donna or get a copy of her book - www.connectuscanada.com
How many of us think in order to be successful business owners that we have to take control and just do it ourselves ?
You dream of escaping the 9-to-5 rat race, starting your own business, and becoming your own boss, sound like heaven, but you don’t have a clue where to start. Opening a franchise-based business can lower your start-up costs and reduce the time, hassle, and risk associated with getting a new business operational. A franchise offers training, support, a proven business model, and the closest thing possible to a turnkey solution for achieving success.
We’ve been brought up to be accountable, to take charge of our own lives, but some of us have lost sight of those goals we’ve set for ourselves because we don’t seem to be able to accomplish them on our own. Perhaps it’s time to consider teaming up with others, to find out more about the business of franchising, particularly in the retail sector. This might be exactly what you are looking for !
I suggest it’s time to use a systematic approach and hone the skills necessary to take you and that potential franchise business to the next step. As small business owners and entrepreneurs we are protective of our customer base, our community of influence if you will, and we are afraid if we share those resources along with our talents we might not benefit as much as others from our sharing. Franchising provides a wider community and the opportunity to share resources.
The first step in creating an atmosphere that is conducive to a winning retail franchise is to build rapport. This means that you have to take the time to find out what you have in common with any of the franchises you might be considering, and unless you are comfortable making conversation, and finding common ground this can be a difficult first step.
The second step is to exchange relevant and timely information about yourself and your interests – to see if there is a fit. Then you need actually listen to the other person when they talk. It’s imperative that you find out what your common ground might be with this potential new business you are considering.
The third step is to actually develop solutions that will work for both you and the franchisor. You may have to be creative and use a little lateral thinking to see where the fit might be. As with any alliance, both sides need to feel comfortable working together.
The fourth and final step is to discuss your views on integrity and ethics. If you don’t both have the same ideology – there will never be a chance to develop that alliance, that partnership called franchising.
The system used is called the RISE philosophy. With franchising in any sector, you need to build rapport, exchange information, find solutions and do it ethically.
EIGHT EXERCISES TO HELP BUILD SUCCESSFUL STRATEGIC ALLIANCES BETWEEN THE FRANCHISE AND THE FRANCHISOR
1 • Learn the art of conversation, and recognize it’s a two-way communication.
2 • Learn to really listen – take time to find your common ground.
3 • Develop a broader perspective. Realize that everyone sees things differently.
4 • Learn how to ask for what you need. And be willing to share your resources in return.
5 • Become a lateral thinker, what once worked doesn’t always. Use creativity to find the fit.
6 • Use your research skills. Learn about the other person and their company.
7 • Consider combining your talents for a volunteer/charitable project as a first step.
8 • Spend some time together. Get to know where you have compatible views.
Sales from franchises account for billions of dollars in revenue every year. Statistically, buying a franchise is the safest way to own a business; but only if you choose the right one.
THE FOLLOWING INFORMATION SHOULD HELP YOU CHOOSE THE BEST RETAIL FRANCHISE AND PREPARE YOU FOR RETAIL BUSINESS OWNERSHIP.
In haste and excitement to embark on the franchise journey, many franchisees sign documents they do not fully understand. Franchise agreements are long and include a significant amount of detailed information. Retain a lawyer that is familiar with franchise agreements before you sign anything.
Most potential franchisees believe that a business that appeals the masses is the surest path to success. While you can find plenty of proof for this model there are also many benefits to targeting a narrower customer base for your franchise.
For starters, limiting the scope of your franchise will provide you with a way to distinguish yourself from the competition. You’ll also likely be offering a more unique service.
Most beginning franchisees are after the same thing — seed money. Securing the necessary funds to start a franchise can be an agonizing experience. One thing investors and banks love is a good business plan, one that is focused and easy to understand. Most franchisees think in the most general terms possible, which investors see as financial risk. By focusing on a particular and specific customer base, you’ll have much less competition. If you can prove a demand for your product or service, obtaining the proper financing will be that much easier.
The following steps will be helpful in assuring your success:
EVALUATE YOUR SKILLS, INTERESTS, AND FINANCIAL SITUATION
Before you buy a retail franchise take inventory of your skills and interests. What appeals to you ? Are you willing to work long hours, including evenings, weekends and holidays ? Understanding your financial situation may save you time and money by narrowing your options to what you can afford. Know what you can afford.
RESEARCH YOUR OPPORTUNITIES
Once you have narrowed the choices down to a few that match your skills set, interests and budget, it is time to dig deeper. Request franchisors’ Franchise Disclosure Document (FDD) and financial statements and make sure you understand what they say. Interview existing and former franchisees to find out whether or not they are satisfied with their earnings and the franchisor’s performance and ability to fulfill their obligations.
RESEARCH YOUR MARKET
You may have heard about a great golf retail concept and want to open a store in your community. However, you live in a small town with below-zero winters and no golf courses. Logically, this concept is not the best choice for your market. If there is little or no demand for your product in a market, the odds for success are slim to none.
SELECT A PRIME LOCATION
The specific location within your target area also is critical. If you are situated in an infrequently traveled area no where near complimentary businesses or at the back of a strip mall, you limit your earning potential. While it seems logical that malls are great places to attract customers, not all retail stores work in a mall setting. Even if you are the only game in town you must gauge the likelihood of outsiders visiting your store.
SECURE YOUR FINANCING AND CHOSSE A FRANCHISE
Once you have made your decision, you will probably need financing. There are numerous options, including conventional bank loans, small business loans, and home equity loans.
ARREND TRAINING/HIRE STAFF
In order to run the business you will need training and an operations manual. Your franchisor should provide some form of training. Depending on your franchise concept you likely will need to hire some staff. Before your business opens you will want to post signs and run an ad advertising openings.
GET THE NECESSARY PERMITS AND INSURANCE
You may be required to apply for various federal, state and county licenses and permits. Each industry has its own requirements for insurance. This information should be listed in the Franchise Agreement.
You dreamed of escaping the 9-to-5 rat race and starting your own business, now you the systematic process that can give you the steps you need to succeed in retail franchising !
You dream of escaping the 9-to-5 rat race, starting your own business, and becoming your own boss, sound like heaven, but you don’t have a clue where to start. Opening a franchise-based business can lower your start-up costs and reduce the time, hassle, and risk associated with getting a new business operational. A franchise offers training, support, a proven business model, and the closest thing possible to a turnkey solution for achieving success.
We’ve been brought up to be accountable, to take charge of our own lives, but some of us have lost sight of those goals we’ve set for ourselves because we don’t seem to be able to accomplish them on our own. Perhaps it’s time to consider teaming up with others, to find out more about the business of franchising, particularly in the retail sector. This might be exactly what you are looking for !
I suggest it’s time to use a systematic approach and hone the skills necessary to take you and that potential franchise business to the next step. As small business owners and entrepreneurs we are protective of our customer base, our community of influence if you will, and we are afraid if we share those resources along with our talents we might not benefit as much as others from our sharing. Franchising provides a wider community and the opportunity to share resources.
The first step in creating an atmosphere that is conducive to a winning retail franchise is to build rapport. This means that you have to take the time to find out what you have in common with any of the franchises you might be considering, and unless you are comfortable making conversation, and finding common ground this can be a difficult first step.
The second step is to exchange relevant and timely information about yourself and your interests – to see if there is a fit. Then you need actually listen to the other person when they talk. It’s imperative that you find out what your common ground might be with this potential new business you are considering.
The third step is to actually develop solutions that will work for both you and the franchisor. You may have to be creative and use a little lateral thinking to see where the fit might be. As with any alliance, both sides need to feel comfortable working together.
The fourth and final step is to discuss your views on integrity and ethics. If you don’t both have the same ideology – there will never be a chance to develop that alliance, that partnership called franchising.
The system used is called the RISE philosophy. With franchising in any sector, you need to build rapport, exchange information, find solutions and do it ethically.
EIGHT EXERCISES TO HELP BUILD SUCCESSFUL STRATEGIC ALLIANCES BETWEEN THE FRANCHISE AND THE FRANCHISOR
1 • Learn the art of conversation, and recognize it’s a two-way communication.
2 • Learn to really listen – take time to find your common ground.
3 • Develop a broader perspective. Realize that everyone sees things differently.
4 • Learn how to ask for what you need. And be willing to share your resources in return.
5 • Become a lateral thinker, what once worked doesn’t always. Use creativity to find the fit.
6 • Use your research skills. Learn about the other person and their company.
7 • Consider combining your talents for a volunteer/charitable project as a first step.
8 • Spend some time together. Get to know where you have compatible views.
Sales from franchises account for billions of dollars in revenue every year. Statistically, buying a franchise is the safest way to own a business; but only if you choose the right one.
THE FOLLOWING INFORMATION SHOULD HELP YOU CHOOSE THE BEST RETAIL FRANCHISE AND PREPARE YOU FOR RETAIL BUSINESS OWNERSHIP.
In haste and excitement to embark on the franchise journey, many franchisees sign documents they do not fully understand. Franchise agreements are long and include a significant amount of detailed information. Retain a lawyer that is familiar with franchise agreements before you sign anything.
Most potential franchisees believe that a business that appeals the masses is the surest path to success. While you can find plenty of proof for this model there are also many benefits to targeting a narrower customer base for your franchise.
For starters, limiting the scope of your franchise will provide you with a way to distinguish yourself from the competition. You’ll also likely be offering a more unique service.
Most beginning franchisees are after the same thing — seed money. Securing the necessary funds to start a franchise can be an agonizing experience. One thing investors and banks love is a good business plan, one that is focused and easy to understand. Most franchisees think in the most general terms possible, which investors see as financial risk. By focusing on a particular and specific customer base, you’ll have much less competition. If you can prove a demand for your product or service, obtaining the proper financing will be that much easier.
The following steps will be helpful in assuring your success:
EVALUATE YOUR SKILLS, INTERESTS, AND FINANCIAL SITUATION
Before you buy a retail franchise take inventory of your skills and interests. What appeals to you ? Are you willing to work long hours, including evenings, weekends and holidays ? Understanding your financial situation may save you time and money by narrowing your options to what you can afford. Know what you can afford.
RESEARCH YOUR OPPORTUNITIES
Once you have narrowed the choices down to a few that match your skills set, interests and budget, it is time to dig deeper. Request franchisors’ Franchise Disclosure Document (FDD) and financial statements and make sure you understand what they say. Interview existing and former franchisees to find out whether or not they are satisfied with their earnings and the franchisor’s performance and ability to fulfill their obligations.
RESEARCH YOUR MARKET
You may have heard about a great golf retail concept and want to open a store in your community. However, you live in a small town with below-zero winters and no golf courses. Logically, this concept is not the best choice for your market. If there is little or no demand for your product in a market, the odds for success are slim to none.
SELECT A PRIME LOCATION
The specific location within your target area also is critical. If you are situated in an infrequently traveled area no where near complimentary businesses or at the back of a strip mall, you limit your earning potential. While it seems logical that malls are great places to attract customers, not all retail stores work in a mall setting. Even if you are the only game in town you must gauge the likelihood of outsiders visiting your store.
SECURE YOUR FINANCING AND CHOSSE A FRANCHISE
Once you have made your decision, you will probably need financing. There are numerous options, including conventional bank loans, small business loans, and home equity loans.
ARREND TRAINING/HIRE STAFF
In order to run the business you will need training and an operations manual. Your franchisor should provide some form of training. Depending on your franchise concept you likely will need to hire some staff. Before your business opens you will want to post signs and run an ad advertising openings.
GET THE NECESSARY PERMITS AND INSURANCE
You may be required to apply for various federal, state and county licenses and permits. Each industry has its own requirements for insurance. This information should be listed in the Franchise Agreement.
You dreamed of escaping the 9-to-5 rat race and starting your own business, now you the systematic process that can give you the steps you need to succeed in retail franchising !