7 Ways to Ensure Financial Success with Your Franchise
When starting your new business, there are a number of aspects to plan toward. From everything required to get your business up and running, to actually creating forward movement and running the business (helping customers, filing your paperwork, etc.), there are many steps required so that everything can fall into place. But behind all the steps, behind the logistics and the training, it's all about money. Realistically, that's why you're opening your franchise business, right? To make money. This will be your career path going forward, and you're also putting funds into the business up front. Therefore, it needs to be profitable.
This is one of the simplest business concepts to date. Implementing, it however, becomes a bit more complicated. In order to ensure an income for yourself and employees, you have to prove your business to be worthy of bringing in dollars. Planning for this up front as much as possible can help to create that blanket of security, as well as leaving yourself better prepared to own and run your upcoming franchise.
1. Talk with Your Franchising Brand
This, of course, is why you're working through a franchise brand in the first place. You can remain as prepared as possible, thanks in part to their expertise. Not only in business model and advertising, however, but in advice. Talk to your contacts at the company and ask them there you need to brush up on your skills most. What's the best way to stay prepped for opening day, then beyond, and so forth. The more you are able to pull from them and execute, the more you can be ready to run your franchise, and better yet, it's all brand specific, allowing it to get you that much further as an entrepreneur.
2. Don't Overspend/Watch the Budget
It's a good idea to keep a tight budget from the very get-go. Everything from décor, to wages, to overhead and taxes should all be included in this budget. Then spend within your means going forward. You might even want a little cushion, should an unexpected expense come along, or something that's simply more expensive than you originally planned for.
In that same light, you need to ensure the business has everything it needs, as last-minute purchases can be more expensive than when ordering ahead of time. Keep a close eye on your numbers to help the business stay financially responsible.
3. Offer a Great Customer Experience
One of the best ways to get customers to come back time and time again is to offer them a good experience. Provide a great product or service, work with your employees to remain helpful and friendly at all times, and so on. The better you're able to carve out how your customers will walk away happy, the more likely they are to return … or to recommend you to others.
4. Be Realistic with Your Funding
Starting your franchise can feel expensive, just like any purchase, the money is due upfront. However, it's also important to stay realistic about how much money is owed, and what outside expenses will also be needed early in the process. While it might seem like a lot (we've been there, we get it), once you're set up and running, those same purchases will fuel you for years to come. Weigh out the necessities and ensure you have enough so that you aren't strapped or forced to borrow with heavy interest fees. These last-minute alternatives can only cost you more in the long run.
5. Educate and Adapt Yourself
We mentioned that you should remain prepared as the business owner, but that also means looking out for missteps as the business opens and grows. Pay attention to potential errors or processes that are costing extra funds. By staying ahead of these leaks you can help your franchise location save serious funds. Besides, learning the process yourself is far cheaper than hiring a professional. Sure you might seek out their advice, but wherever you can learn and implement changes yourself adds up to dollars saved.
6. Look at the Books!
Sounds simple, right? You'd be surprised how many business owners simply don't look at their accounts. Whether they have someone else in charge or they have an idea "in their head" of what it should be, they don't take the time and actually see what's taking place at the bank. Keep track regularly; you never know when payments will clear, when they'll come in, if there was some type of auto-withdrawal error, and so forth. Nothing beats actual eyes on your numbers.
7. Make Money!
Duh – this is the plan along. But that doesn't mean it will happen automatically. By implementing all of the above and offering a solid franchise model, and then executing it successfully, you can bring money into your business every day of the week. If funds start to slow or you aren't drawing like you'd hoped, you can readily evaluate to determine the cause.
Keeping a close eye on all of the above can allow your franchise business to flourish. Remain informed, involved in your franchise, and ready to make changes as they are required. It's a combo that can keep you business-ready and profitable in moving forward.
By Bethaney Wallace | Jul 29, 2019 | General Franchise Information