One unique aspect of a franchise business is the relationship between you (franchisee) and the franchiser. The franchiser sets rules to be followed by the franchisee. They also support the franchisee in terms of training, marketing, and capability building.
The franchisee, in return, runs the business following the rules and the standard set by the franchiser. Here, we discuss the most common challenges experienced in the franchise business and the strategies to surpass them.
Marketing (Especially Locally)
Most franchise businesses have a specific marketing plan outlined by the franchiser. However, some parts of these plans may not be applicable to your local level. Thankfully, with the onset of technology, marketing can now be achieved through different platforms.
For a business establishment to succeed, one must have a solid digital marketing plan as maximizing your presence online brings more chances and opportunities. Google and social media advertisements are often sought after; well-maintained websites or social media accounts are also effective.
If you don’t want to fall behind, but you lack the know-how, look for agencies that specialize in business franchise internet and digital marketing so you can get on the right track.
Hiring the Right People
Finding the right people is crucial in running any franchise business because your team could be your downfall or success. They carry out the day to day activity of your business, so choose carefully. However, finding the right team is only the start.
Once you’ve found people who fit into your franchise’s culture, you now must discern their strengths and weaknesses so that you can maximize their full potential. Most business owners try to balance the strengths of personnel with the weaknesses of the others.
You also need to send your personnel to continuous training to improve their skills as well as to attain higher productivity and efficiency. Now that you’ve built a great team, you have to keep them. Design an employee retention program to keep your best personnel through fair incentives and benefits.
Managing the Daily Operations
Growing a franchise business is like growing a plant. You need to tend to it and give it your attention. Improving the day-to-day operations of your business will take most of your time, but it is essential in achieving success. It is a must that you keep an eye on how your business operates.
A lot of things can happen, and there is so much to learn, in just one day of managing your business’s operations. Various challenges are experienced in a day, may it be an impatient or demanding customer, damaged equipment or shortage of supplies.
All of these challenges, however, are opportunities to improve your business. Learn from each misstep and change your scheme, if necessary, to improve your services.
Lack of Flexibility
As a franchisee, you are governed with a franchise agreement that laid out rules set by the franchiser. Hence, you have limited flexibility over the innovations and initiatives that you can implement on your business.
But since most franchise models are standardized based on an actual successful business, you are ensured that the strategies that you are applying to your business are effective. If you want something to implement, you have to closely coordinate with your franchiser and secure their approval.
Managing a franchise business is not easy. But with proper knowledge of the challenges of the franchise business, you can devise strategies to make your business flourish.