First Time Franchisee: 3 Management Mistakes that Can Cost Your Business

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When you franchise a business, you’re the boss – but not really. Unlike in managing a start-up, there’s already a system ready for implementation. The franchise disclosure document and the contract you signed set the obligations and restrictions for your job. The marketing strategies are also ready for you to use.

With many of the crucial pieces for the business already in place, you might feel there’s little opportunity for you to mess up. This mindset downplays the importance of your management skills to the success of your store.

You Don’t Have to Do It Alone

Even with an established franchise that has all the procedures down to a T, you have a responsibility to oversee their implementation with good leadership. This means accepting all the training your franchisor offers and going the distance with workshops outside that improve your skillset. The same goes for the leadership team you form.

There’s also the temptation to handle the marketing yourself since the franchisor already laid the groundwork for the brand. While it sounds easy enough, it’s different from the usual marketing you’re familiar with. Tap franchise marketing services to generate outputs that maximize the use of the brand in many venues. Their expertise will also reduce the margin for error when it comes to following the franchisor’s guidelines.

As your business continues to grow, prepare people to whom you can delegate your tasks. This gives you room to consider improvements and look for new business opportunities.

You Need to Have a Vision

The franchisor has a vision. Your franchise needs one, too.

This makes it easier to plan and measure the rate of your business growth. Don’t over-rely on the home office to dictate your every move. Without a vision, you risk putting your franchise into an inactive state and wasting the brand’s influence. Not to mention the capital you’ve put in.

Having a vision is also an excellent way to motivate your workforce. Employees want to work with good leaders who can help them advance their careers. Let them contribute to the specifics of the vision so that they feel a sense of belongingness. While franchisors have the authority to determine how you should handle recruitment, training, and other employee-management matters, it’s up to you to create a culture they like to work in.

employees on a huddle

You Can Choose to Collaborate

Collaboration doesn’t only happen inside your store. You can make acquaintances with other franchisees and learn from them.

You’ll learn the most important lessons in business through experience. No rule says they should be your experience, though. Meet other franchisees by attending training, events, or through a standard connection. Invite them for a meal and show interest in hearing about how they started and the challenges they face. You’ll likely encounter the same ups and downs along the road.

You can also reach out to businessmen who own a different franchise, both inside and outside your industry. Talk about dealing with employees, handling bad reviews, and coordinating with franchisors – anything to help you as a leader. It might be through cultivating these relationships that you get the wisdom you need to expand or the creative spark to solve a problem.

Always remember that a franchise, although established, needs good leadership for it to succeed. Find a balance between the tools provided by the franchisor and your responsibilities as a franchisee. It’s through this that you’ll see a worthwhile return in the investments you make, both financially and otherwise.

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