Franchising Rebecca Smith · 15 September 2015
Five tasks that should be at the top of every new franchisee’s action list for year one
Business Advice spoke to Linda Price, founder and director of Swimtime, and chair of Northern forumsfor the British Franchising Association, for her thoughts on what all new franchisees should prioritise in the crucial first year. Driven by the rising number of people setting up or taking on a new business, franchising is one of the fastest growing sectors in the UK. From outsourced secretarial services to Subway, the franchising model is thriving. There are now close to 40, 000 franchise outlets operating in the UK, with 92 per cent of franchise model businesses reporting profitability. It has become an attractive proposition for many business people, but there are some important reminders to keep in mind for the early stages, to make sure you set up the best foundations possible. Here are Price’s top five guidelines for a successful year one. (1) Follow the model From day one, franchisees need to have a real understanding of the franchise model and the products or services they have committed to. They need to pay attention to information provided during the initial training. Ensure that the franchise USP and key marketing objectives is kept front of mind and keep focussed! I recommend talking to existing franchisees about their own businesses and the challenges they face to learn from their failures and successes. (2) Have a clear marketing plan review often Have a clear business plan and know how you are going to bring customers to your business. Some franchises can just sell themselves, as they are already part of the high street furniture (look at Domino’s and Claire’s Accessories, for example), but their success is built on an efficient, evolving marketing machine. Franchisees need to devote time inyear oneto find out what works, what doesn’t work, where new business is coming from, and to understand what is offered by competitors. From using and refining the approach on social media channels, to attending the right local networking events, time and energy needs to be invested by franchisees into this task. I advise getting to know the local business press and find out if there are any advertising incentives for new businesses. Marketing needs to be a daily priority, to help keep existing customers, and bring new customers in. Working closely with the franchisor is paramount when paying for these types of services. Remember theyve tried and tested every part of the model. (3) Keep your data up front and at hand, and plan for growth Whether it is through pen paper and calculator, spreadsheets or a software system provided by the franchisor at the outset franchisees have to use any method to make sure they stay on top of what is happening in all aspects of the business. Keeping a close eye on cash levels is also key under capitalisation is a killer for fledgling businesses.
ABOUT THE EXPERTRebecca Smith
Rebecca is a reporter for Business Advice. Prior to this, she worked with a range of tech, advertising, media and digital clients at Propeller PR and did freelance work for The Telegraph.