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Are You Motivated to Have a Winning Franchise?

Joyce Morse

October 19, 2015

Starting your own small business is difficult, but you can make it easier if you choose a franchise.

However, just partnering with a recognizable name isn't enough to guarantee your success. You must be motivated to make it excel and know how to have a winning franchise.

Partner with the Right Franchise

Not every franchise is as successful as the next.

When deciding which organization to go with, select one that has a solid reputation and stands out from the crowd. Just look at all of the fast-food restaurants in business.

Some are much more successful than others. Compare Subway or McDonalds with Wendy's or Sonic and you'll see the difference.

Another way this benefits you is through scale.

The more units around the world, the less the individual item costs. This can result in a higher gross profit for each franchise.

Know the Market

Just because a company is successful, it doesn't mean another franchise will do well in your area.

Market saturation is a big problem for companies with a lot of competition.

Take the fast food industry again. You see restaurants lined along the streets. At what point is the market saturated where another business will not succeed?

You will have to conduct market research to see if there is potential for another business.

If not, you'll have to decide to either partner with a different kind of franchise or set up shop in another location.

Plan for the Future

As the article, “Motivation and the Three Stages of Franchisees” says, there are three stages in the franchise business: starting up, growing and retiring.

It helps to know where you want to go from the beginning.

While you must have a business plan to get financing in most cases, you should periodically review your plan to make sure you are still in line with your goals.

The enthusiasm that comes when you are beginning a new small business will wear down over time.

After a few years in the business, you may decide you want to retire early, or you may want to expand.

Where you are in your business will influence your approach to various aspects of your business. It will impact what you do with your money, how you advertise and other decisions.

Continue to Learn

No matter how long you've been in business, you can always learn something new.

You may learn it from other franchisees who've been in business longer or from those just starting out. Don't discount someone new in the business because they may have a better idea of what's current.

Running a small business isn't a static activity.

If you aren't continually re-evaluating how you do business, you will find your company out of step with consumers.

Buying into a franchise can be a safe way to start your own small business.

However, a lot of work is involved and you must be dedicated to your new company to see it succeed.

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