8 Keys to Sustainable Franchise Business Success

1. KNOWLEDGE
     Acquire it, then implement it. Knowledge is power, use it.

2. COMMON SENSE
     Knowledge is important, but it must be coupled with common sense.   Sometimes this is referred to as “street smarts”.

3. TREAT OTHERS AS YOU WOULD WANT TO BE TREATED IN THE SIMILAR SITUATION
    (Yes, the Golden Rule)
    It seems simple, and it is, but it must be continually implemented.
    Assumes you have good self esteem and strength of character
    Applies to employees, associates, customers and suppliers

4. MAKE IT EASY FOR THE CUSTOMER TO BUY
     Listen, Listen, Listen
     Educate on benefits unique to them
     Financing have it in  place, which makes it easy to buy
     Convenience, do what it takes
     Follow up and follow through

5. EXECUTION
     Once you have the knowledge, putting it into action is called implementation.   Execution is implementation put into practice.  Consistent, thorough execution  takes practice, practice, and more practice.  Feedback is also required to  accomplish “reimplementation”.  The best plans are only as good as their  execution.

6. SELFLESSNESS
 Be dedicated to the service, enhancement, or enrichment of others personally and  through your Franchise Business.
 If you truly give more than you get, you will get more than you give.

7. HEALTH
Physical, Mental, and Spiritual health are all important to the success of your business.  Have a plan in place to address each and follow it consistently. 
 
8. PDP – Passion, Discipline, and Perseverance
 The primary motivation of you and your Franchise Business has to be, not money/wealth, but the deep  seated passion  you feel for your vision or endeavor.  That passion, coupled with strict personal  discipline and diligent perseverance, are the strongest forces for success.

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I provide no-cost assistance to entrepreneurs nationwide, helping them identify franchise business opportunities that match their interests, backgrounds and financial means. I offer hundreds of business opportunities in a multitude of categories.

I am an affiliate of the world’s largest franchise network with more than 25 years experience helping entrepreneurs like you find and own their own businesses.

Contact us at 888 701-6413 or lee@myfpts.com
In the meantime, you can return to my website to continue browsing.

Best Regards,
Lee Thomas
Franchise Paths To Success

Six Proven Reasons Why Franchise Business Owners Fail

Owners and managers of failing businesses continually make one or more of five deadly mistakes that accelerate the downward spiral to business failure.

“Undercapitalized”

This is often cited as the number one reason why businesses fails.  It is, I think, a bit misleading.  Certainly, if the business doesn’t start with, or have a good business plan including the projected amount of capital to operate the business for a defined period of time, it can be “undercapitalized”.  Remember, however, that good business plans can go bad, but bad business plans never go good.  In addition, my experience has demonstrated that it takes “twice as long to produce half of the projected revenue”.  Think about that, and project accordingly.  Usually a business is not “undercapitalized”, it just does not generate enough revenue. 

Chasing higher sales at all costs

If the sales focus is too strong, management will increase sales even at the expense of reduced profits, negative cash flow and a weakened balance sheet. It’s called managing the top line and it’s usually terminal to a franchise business that is faltering. One of today’s best survival techniques is right sizing, which changes a business to the size necessary to allow the profitable delivery of its core products.

To survive today’s tough times it’s mandatory that you balance your desire for growth with the need to maintain profitability, cash flow and financial strength. The life expectancy of your business depends on your ability to adequately control costs and cash flow.

Inadequate controls over costs and cash flow

To become profitable and stay that way, managers must know what it costs to deliver their products. Often, it’s difficult to capture accurate information about costs, but it’s difficult to capture accurate information about costs, but it is vital if you expect to be profitable. You, your franchise business and your employees will lose if you manage cash flow just enough to make sure the most recently issued check will clear. Start a cash management system so you can plan ahead, make informed decisions and make the right moves before a crisis develops.

Failure to communicate with front line staff

Open communications create a common awareness of the team concept that is critical for the success of your franchise business. It lets the owner and managers share their visions for the business. More important, it allows the employees to tell top management what’s working and what’s not, as well as what they hear and see from the customers.

Losing sight of what the marketplace wants

An excellent way to stay in touch with your marketplace is to talk regularly with customers who did buy from you and with prospects who didn’t. This gives you the direct opportunity to learn why they bought, why they didn’t buy and what they would buy if you offered it. For best results, have one of your top executives make these calls. Don’t make the mistake of trying to make it a sales call in disguise.

Relying solely on input from your own people

A franchise  business that doesn’t take advantage of valuable knowledge available from the Franchisor AND outside its walls is cheating itself and probably committing suicide. All too often, we see companies in deep trouble because of an ill-advised, not invented here environment. It’s fortunate that today there is many competent sources for learning about new opportunities and how to better manage existing operations. These experienced professionals can provide new information, as well as new and objective views about your business that you and your staff lack.

All in all, business if a game in which you must be aware of the “rules”, the playing environment, and have discipline, perseverance, flexibility (always have options), and vision (both near and long term).

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I provide no-cost assistance to entrepreneurs nationwide, helping them identify franchise business opportunities that match their interests, backgrounds and financial means. I offer hundreds of business opportunities in a multitude of categories.

I am an affiliate of the world’s largest franchise network with more than 25 years experience helping entrepreneurs like you find and own their own businesses.

Contact us at 888 701-6413 or lee@myfpts.com
In the meantime, you can return to my website to continue browsing.

Best Regards,
Lee Thomas
Franchise Paths To Success

6 Lessons for Franchise Business Owners

Everybody knows Subway is a successful franchise chain. But did you know last year it cracked and should shortly hit 34,000? The fresh-sandwich chain passed McDonald’s to take the top fast-food franchise crown — the Golden Arches have just 32,000 restaurants. This may seem like a big-business story at first, but Subway and McDonald’s have made their brand one locally owned franchisee at a time. The chains are essentially huge conglomerations of mom-and-pop restaurants.

The tale of how Subway overtook the longstanding leader in their sector has many lessons for small business owners everywhere. Here are some of the factors that let Subway move ahead:

1. Tell a great story. When Subway found the original Biggest Loser, then-student Jared, the company had the sense to jump on the story and keep it growing. Subway could have just had a motto along the lines of “our food is lower fat and healthier than our competitors,” but it wouldn’t have been nearly as compelling as ”Hey, look at me — I ate exclusively at Subway and lost tons of weight!” 

This could have been a one-season marketing arc, but instead Subway kept it growing and fed Jared fans a steady stream of new information for many years. The corporate website still has a whole tab about Jared that goes back to his very first commercial.

Lesson: If you have a great customer story, don’t be afraid to grab it, tell it, and then keep on telling it.

2. In touch with trends. Subway always had lower-fat offerings, but marketed just as a sub-shop for a while. Then came the era of “eat fresh” and the emphasis on fresh ingredients. In a world where fast food mostly meant fried everything, this appealed to many diners with a growing interest in eating healthier.

Lesson: Are you listening to customers and following trends in your sector? It could be time to change your message. Don’t be afraid to do it.

3. A flexible brand. Subway’s brand simply stood for ‘quick-sandwich,’ and as tastes changed, Subway was able to morph their brand to stand for healthier food. McDonald’s, Burger King, and all the other old-time fast-food giants wish they could get customers to eat their healthy-food offerings, but often these don’t find an audience, because these brands are so closely associated with fattening burgers and fries.

Lesson: If you’re starting a new company, think carefully about your name. What does it stand for? Could it be easily made to stand for something else if consumer tastes shifted?

4. Creative locations. Thanks to its health-food positioning, Subway gained entree into locations some of the fried-food biggies couldn’t get a contract with, such as in hospitals.

Lesson: Think about all the places your brand could be, and explore some new options.

5. Customer engagement. Subway was one of the early adopters of the restaurant layout where you watch your food being made right in front of you. Customers love it — it not only reassures diners about what’s in their food, but allows for endless customization on the fly.

Lesson: Strive for ways to get customers more engaged in your process of creating the product they want.

6. Great franchisor-franchisee relations. Around the same time Subway got started, another sub-shop chain, Quiznos, started as well. Subway seems to have treated franchisees fairly well, and relations have been positive. On the other hand, Quiznos franchisees have been an angry, rebellious bunch of decades, repeatedly suing the company over what was seen as unfair treatment.

While Subway soared, struggling Quiznos shrank by 1,000 units last year. With only around 4,000 stores, it faces a steep uphill battle to compete with Subway at this point.

Lesson: Relations with stakeholders are important. Think about how you can make vendors, marketing partners, and franchise holders feel supported.

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I provide no-cost assistance to entrepreneurs nationwide, helping them identify franchise business opportunities that match their interests, backgrounds and financial means. I offer hundreds of business opportunities in a multitude of categories.

I am an affiliate of the world’s largest franchise network with more than 25 years experience helping entrepreneurs like you find and own their own businesses.

Contact us at 888 701-6413 or lee@franchisepathsforsuccess.com
In the meantime, you can return to my website to continue browsing.

Best Regards,
Lee Thomas
Franchise Paths To Success

When To Go Into A Franchise Business

Often, I am asked when is the best time to go into business.

My answer is, “when you feel lucky”!

Now, this may seem silly and flippant. But actually it is not.

Let’s determine what luck is.  My definition:  luck is when opportunity meets preparation.

Given this definition of lucky, then you can readily see that luck is really an illusion.  We know of many persons who have been successful in business, and often attribute their success, or at least a great deal of it, to luck or being in the “right place, at the right time”.

It has been my experience, that the luck I have enjoyed in my business career, was due in large measure to being prepared, and when the opportunity presented itself (often created by me), I was ready to “take the ball, and run with it”.

So, what is proper preparation?

It starts with self assessment.

The first, and maybe the most important, consideration is “passion”.  Do you have a passion for being in business, being an entrepreneur?  Is it just “wishful thinking”, daydreaming, or are you serious.  Do you have a passion for the activity (business purpose) that you will be engaged in?  If you cannot answer yes to both of these questions, it is not the proper time to “go into business”.  Having “the passion” will sustain you during the “tough times”, and be assured; there will be “tough times”.

Once you have determined that you have “the passion” for being in business, you need to determine your likes, dislikes, and skill sets.  Compose lists of each.

Determine the type of business you would want to be in (service, technology, manufacturer, distribution, internet, retail, etc.), and the industry and/or niche.

Determine if you want to start a business or acquire a business.  Each has it pluses and minuses.  Start ups are riskier, acquisitions have track records.  Start ups may be harder to finance than acquisitions.  Start ups may require less initial capital than acquisitions.  List the pros and cons of each scenario.

Once you have made the decision as to start up versus acquisition, and then determine why you would be successful in the market place.  What unique qualities will you bring to the business?  Examine the competition, and determine how you will compete in the market place.

Determine that you have the appropriate financial backing/resources to carry out your business plan.  This should include acquisition or startup capital, in addition to adequate capital to sustain your personal requirements.  There is nothing more “draining” on one’s psychological wellbeing than having inadequate capital and poor cash flow.

Support:  will you have the support (emotional and possibly financial) from your family?  Will they be “cheer leaders” or detractors?  No one is an island, and this can be an important factor in making the right decision.

So, there is much to consider when “thinking about going into business”.  But, the best time is NOW, and a Franchise may very well be your best choice!

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I provide no-cost assistance to entrepreneurs nationwide, helping them identify franchise business opportunities that match their interests, backgrounds and financial means. I offer hundreds of business opportunities in a multitude of categories.

I am an affiliate of the world’s largest franchise network with more than 25 years experience helping entrepreneurs like you find and own their own businesses.

Contact us at 888 701-6413 or lee@franchisepathsforsuccess.com
In the meantime, you can return to my website to continue browsing.

Best Regards,
Lee Thomas
Franchise Paths To Success