8 Qualities of a Successful Franchisee
A study relating to franchise business reveals that successful franchisees possess the following personal traits.
Always wants to learn new things.
A successful business person is one who is willing and ready to learn new things about his or her business. He or she always finds time to reach out to the franchisor and fellow franchisees to learn how to better operate the franchise. He or she is never hesitant to ask help from successful peers and follows their advise. He is always open to share problems and challenge faced in running the business to the franchisor and is ready to admit he or she lacks knowledge and humble enough to seek help.
Hardworking and willing to go on extended hours.
There is more reason to go on spending more hours in your own business than working overtime in the office for another employer. Investing in time to learn more about what your customers want, how your competitors do it, which products sell best and most profitable is a productive way to be successful in the business.
In addition to willingness to spend time on the business, business owners must possess certain characteristics such as patience especially if things are not going as planned, willingness to take calculated risks and has a positive view of outcomes even if they’re not necessary successful.
Sometimes, the business owner has to sacrifice time with family or give up personal interests for the sake of the franchise business.
Knows how to deal with people well.
A successful franchisee is one who knows how to relate to people of different walks of life. From employees (sales people to dishwashers) to customers (loyal clients to one-time visitors) to vendors (interior designers to electricians and deliverymen), the franchisee has good interpersonal skills, can crack humor to break a serious or monotonous atmosphere and know when to set a serious tone to a conversation. This franchisee has the ability to settle disputes and evaluates opposing views with impartiality, no wonder this franchisee earns the respect from people around him.
Knows how to market products or services
Franchisee has the self-confidence and belief that he or she can promote products or services to customers with great pride. Whether it’s a barber shop, a juice bar or a tutorial center, the franchisee has utmost trust over the brand’s reputation and quality of service that he or she does not feel sugarcoating or exaggerating things just to win customers to try over. Franchisee is also keen on listening to customer feedback and constantly looks after product relevance with respect to changing tastes and growing competition to improve product or service delivered.
Can manage stressful situations
Even with the guidance of a Franchisor, there is no guarantee a business will zoom to profit as desired. There will always be problems to expect: additional costs for security, government regulations and utilities, lower customer penetration or newly emerging competition can be among them. For a franchisee to be successful in the business is not only expected to handle stress but finds a way to deal with it without compromising the type of service or quality of products the brand is known for.
Follows the franchisor’s system
It is expected that a franchise business follows a standard system set up by the franchisor. Since this system has been proven to be profitable, a franchisee is likely going to follow the steps in handling the business. Even if the franchisee might have a “better idea” that’s theoretically more profitable that the franchisor’s scheme, a successful business franchisee is a responsible business owner who adheres to the pledge set forth in the users manual to maintain stability of the business.
Has sufficient financial resource
The franchisee has adequate financial capability to provide for both business capital and other needs outside of the business. Fiscal discipline must be in place so resources allocated to maintain and grow the business will not be used for other matters (tuition fee for children, payment for hospital bills, daily necessities, etc).
Financial resources may not come directly from company’s profit or franchisor’s savings, but third-party lenders who are willing to loan the business some capital money, thanks to the borrower’s good credit standing.
Is not afraid to make calculated risks
Risks are sometimes necessary and a wise franchisee is well aware of this. He or she tests new menu on her dining business, new product lines to complement current ones or thought to be more appropriate for the season or changing times. Every failed venture is chock full of lessons learned. The franchisee joins franchisor in innovating new things to see if it matches market demand. They are both open minded on how things might work better to deliver the business more efficiently and encourage more sales.
As franchisees follow the franchisor’s lead based on a time-tested, proven business model, they are also made aware of changing customer wants, market dynamics and government regulations that may impact the way they run the business. Therefore, their resourceful attitude and open mindedness, coupled with strong-willed personality have become known characteristics that define successful franchisees.