Mindset Shift From Sole Proprietor to Franchisor
Making the leap from sole proprietor to franchisor is a mindset shift and conversion process. It usually entails taking a small business and growing it into a network of businesses and partnerships. However, you won’t be able to do that very well if you maintain the mindset of a small-business owner.
Here is how that conversion takes place and why it requires a mindset shift.
Changes & Challenges You Experience Becoming a Franchisor
Obviously, your routine as a business owner will change and evolve if you decide to franchise. That’s why you should prepare yourself for the following:
- Each new franchise unit will involve starting from scratch in building a loyal customer base. That’s why big franchise companies like McDonald’s and Subway spend so much money on training their new franchisees. Business success does not replicate by mere fiat.
- Be ready for even more demands that could impact your work/life balance.
- Employee/franchisee training and recruitment will become more detailed and consume more of your time.
- Your business plan will become more complex, and you’ll have to share and receive feedback from your subordinates to be most effective.
- Your business’ reputation will no longer be local. It could be regional, national, and even global. Perhaps for the first time, you’ll need to focus on things like Google Reviews or Yelp Reviews. The way people evaluate you online will make or break your franchise units and your entire brand.
- You’ll likely need to develop a stronger and deeper digital presence for your company. More business means a greater need for marketing and advertising, especially on social media outlets like Facebook and Google Advertising.
Strategies to Manage the Changes
Here are a few pointers on how to make this transition less stressful:
- Obtain as much expert assistance as possible early in your process. Enlisting the services of franchise development resources to guide you every step of the way can be a wise and prudent investment. There are accountants and attorneys that specialize in franchise laws and regulations. You can also find marketing and branding companies that can help you with essentials from operations manuals to logo design to digital marketing.
- Get excited about this adventure. Not only are you on a path to making your personal and professional dreams come true, you are also contributing to the American economy and the lives of your franchisees and their families. There are 750,000 franchises in the U.S., and they employ more than 8 million people. The bigger your franchise model becomes, the more you’ll add to that prodigious total.
- Keep your current business staff informed of what’s happening. It’s a huge source of confusion and even acrimony if you force key members of your team to face surprises. At a minimum, they’ll think you don’t trust them if you don’t include them in your franchising endeavors. On the flip side, they may be great sources of ideas and inspiration.
- Make yourself aware of the way royalty fees, franchise launch expenses, and other budgetary aspects work. You are required by law to disclose this information to the candidates you recruit so they aren’t blindsided by hefty expenditures. Franchisees will be keenly interested in understanding the timetable for getting a return on their investment.
- You are the most important part of your brand. Use your passion and vision to tell your brand story and convey that energy to your franchisees. Help them understand the costs involved costs and the timetable to a return on their investment while keeping them focused on the bigger picture – the unique attributes of your brand. What need does your business model fulfill? How will they help people, their community, and the environment? Your franchisees should be excited about your brand and ready to work hard to achieve their dreams of business ownership.
- Don’t forget to take time off and enjoy the autonomy of being the owner of a profitable franchise system with trustworthy partners who share your zeal for entrepreneurship.