How do you build a successful franchise and boost profitability?
How do you build a successful franchise and boost profitability? It’s the million-dollar question. After all, ultimately, that is what every business wants – and none more so than when it comes to franchisee and franchisor. So, what’s the answer?
Well, the fact is, there probably is no ‘right’ or ‘wrong’. Rather, it’s about having an open mind and thinking carefully… considering every factor and weighing up every option that lies before you. In this blog, we look in greater detail about the steps to take to be a success… from a solid business plan to training, building the best team and more.
The business plan
When you begin working with your franchisor, it’s crucial you talk to them about a business plan. This will be one of the first steps in securing that all important financing, but even more importantly, it will continue to act as a guide in helping your business get ahead – and stay there. Here are some of the key elements to base your business plan around…
- Industry specifics – e.g. industry / market size, local competition, shopper demographics, etc.
- Operations and premises – e.g. running costs, business rates, location, number of employees, specific supplies / resources, overall structure, etc.
- Financials – e.g. annual projections / forecasts, how long will it take to turn a profit / strong trading periods etc.
- Marketing plan – e.g. target audience, techniques, channels, budget / resources, etc.
Make sure potential earnings are not unrealistic or over-inflated. That way, your plan will be flexible and realistic when pinpointing targets and objectives.
Products and services
What’s also important when considering a franchise investment is to ensure the quality and range of products and services are market-leading – that way you will be able to offer your customers only the very best, which will help your business be successful in the long run. In the context of convenience stores, don’t be limited to just food – think about whether your prospective franchisor goes the extra mile. E.g. do they offer services like coffee machines, Post Office services, the National Lottery, etc.?
Training is key. Listen to everything your franchise partner has to say, absorb it, take it onboard and use it to your advantage. Always remember to ask plenty of questions and get the most out of your Business Development Manager (if you have one). Also, where possible, learn as much as you can from experienced employees and other successful franchisees.
Good marketing is everything and can make the difference between success or failure. Market your business incorrectly and you run the risk of attracting the wrong kind of customers – or, worse, no customers at all! Ask yourself about what your franchise partner offers when it comes to their franchise business model. Is effective marketing at the heart of it? And if it isn’t, how can they make sure it is in the future?
Building the best team
Your employees can be your greatest asset. However, make mistakes in your recruitment policy and they could become your biggest liability. Talk to your franchisor and get advice from them on how best to achieve your staffing goals.
One of Britain’s biggest employers…
Convenience stores provide around 412,000 jobs in mainland UK
Franchise opportunities: how to get ahead – and stay there. 10 top tips
- Choose a franchisor with proven expertise – and follow the business plan / model
- Look at your costs, set realistic and achievable goals and measure your achievements
- Stay safe, legal and compliant – and always maintain accountability
- Make the most of the support you are given – and make sure you have the right marketing
- Always be ready to drive your business forward – with the help, guidance and inspiration of the right franchisor (it’s good to ask for feedback)
- Let the technology do all the hard work for you
- Put faith and confidence in your franchisor’s expertise, scope and knowledge (embrace the training and be ready to learn)
- Focus your sales efforts. Store layout is key, so make sure yours is optimised (offers attract customers!)
- Have the best team around you
- If in doubt, refer to the franchise operating manual regularly and often
Be a vital part of your community…
UK communities rank convenience stores as no.1 in ‘most positive impact on local areas’
Setting up a franchise – will you follow the tips and be a success?
Running a successful franchise store is possible. More than that, it can be highly rewarding and give you the kind of role you have always dreamed of. At the end of the day, it’s about doing the basics and putting in the kind of dedication and commitment that will help your retail franchise be a success.
Blair and Angela Southwood – One Stop franchisee, Lincolnshire
“We’ve been with One Stop since 2015. Since joining, our like-for-like sales have been growing 11% year-on-year. The support we’ve had is something we’ve never had before. We’re a family business but One Stop’s our family as well.”
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