Many years ago, the most common franchise was the traditional brick-and-mortar location such as fast food restaurants and storefronts. Modern technology has brought a variety of business models to the marketplace that offer several different models to choose from.
Home based businesses are very popular these days since technology has made it possible to perform many business activities remotely. These businesses include accounting and professional services, consulting, digital and other marketing services and a variety of other models.
These franchise models offer owners many benefits including lower operating overhead costs, fast and easy startup and the convenience of working from home.
Consider the following when evaluating a home based franchise business:
- Are you a good time manager? Working from home allows you to live and work in the same place, which is great for some but a nightmare for others. Many have a hard time concentrating on work with the distractions of home such as children, pets, spouse or even TV or home projects. On the other hand, many struggle with stopping the work to enjoy family time.
- You should give yourself specific starting and ending times to create a regular work schedule.
- Have a door with a lock. You will need to have a private and professional workspace. Additionally, it is equally important for you to be able to shut the office door at the end of the day and focus on home life.
Some business owners prefer to work out in the field as opposed to being tied to an office or storefront. Mobile businesses can be flexible and offer lower startup costs. These businesses include food trucks, home and business repair and maintenance services, pet grooming and other creative service models.
Here are a few things to consider:
- Make sure that your franchisor offers a strong marketing programme. Mobile businesses do not have the benefit of walk-in traffic so they must generate all of their business with outbound marketing efforts.
- Use technology to maximise your efficiency. Time is money as they say, especially when you have to factor in travel time between paying jobs. On demand scheduling apps, mobile point of sale systems and communication tools can add to your bottom line when implemented properly.
- Check your homeowners association (HOA) rules if you plan to park a commercial vehicle outside of your garage. Many HOAs do not allow any vehicles, including trailers, with logos or wraps to be parked in plain view.
Brick-and-mortar locations include the standard restaurants, retail, hotel, storefront and offices. This model offers the potential benefit of walk-in traffic which may be a better fit for someone who is more comfortable having customers come to them as opposed to business models that require outbound marketing or sales. This model generally requires more planning and related expense due to the build-out and construction of the site before opening.
Before you decide to open a brick-and-mortar franchise, you will want to keep the following items in mind:
- Location, location and location are said to be the three most important factors in the success of a brick-and-mortar business. Proper due diligence is mission critical to ensure the best location. The franchisor may offer site selection assistance or refer you to qualified service providers that can help you find the best options.
- Use a qualified commercial real estate broker. You should interview a few brokers to make sure that you find one that you feel will best serve your needs. You may find a broker that has experience in your specific business category, which can be an added benefit.
- Read Brick and Mortar Franchise Success by Carolyn Miller. Miller is the founder of the National Franchise Institute, which offers classes and education for location-based franchise operators. This book offers a wealth of money and time saving tips and trick that are a must for anyone opening a brick and mortar franchise.
Most franchise owners report that their business lifestyle was a determining factor in their choice of a business model. Consider the “day in the life” of each franchise model to see how they match up with your ideal business before you choose. You should be able to visit existing franchises or participate in a discovery day visit to get a good feel for how each model operates.
This article was originally posted here on Entrepreneur.com.
Could Semi-Absentee Franchise Ownership Be For You?
Ready to become your own boss…for only 15 hours a week? Yes, you can become a franchisee while still clocking into work. Here’s how.
If you want to keep your current job while owning your own franchise, you may want to look into semi-absentee franchising.
“A semi-absentee model allows you to work on the franchise for ten to 15 hours per week while continuing full-time employment. Then when the time is right, you can exit your day job to focus entirely on your business,” explains Jim Judy, a consultant at Franchoice.
When you have a capable manager to oversee the daily operations of the business, you have the flexibility to work your full-time job and ownership of a fully-fledged business. But first, the following considerations need to be made:
How will the decision affect your finances?
While being a semi-absentee franchise owner may require less from you in terms of time, the financial commitment is the same as investing in a franchise as an owner-operator. The decision to become a semi-absentee franchisee should not be made before examining your needs, goals and expectations of the business. Asking yourself the following:
- Do I want to become a franchise empire builder?
- Would I like to build numerous concepts?
- How much capital do I have to invest?
Keep in mind that semi-absentee models may take longer to turn a stable profit if you’re not giving it your full attention due to spending less time working on the business.
“Semi-absentee business models are also expensive,” says Heather Rosen, president of FranNet of Virginia, a franchise advisory firm. “Because the owner must not only rent the space but hire a competent manager.”
Do you have the necessary skillset?
The key to managing a franchise while at you have a full-time corporate job is having impeccable people management skills. This is because having a manager run your business while you oversee them requires you to be comfortable with delegating and trusting that they will handle the day-to-day operations of your business.
In addition to people skills, you may think certain talents are required before calling yourself a business owner, but each franchise is different.
“Some franchisees find that the available training and the business concept allows them to use their particular talents and skills to enter semi-absentee franchising without management or business ownership experience,” say experts at Franchise Direct.
Can you balance your schedule adequately?
Even if your plan is to one day leave your job and become an owner-operator of your franchise, while you’re still on your employer’s payroll, you will need to work out ways to handle your nine-to-five tasks with your business’ success. This is an important aspect of choosing the kind of franchise to purchase. While most semi-franchisee suitable options are in retail or the service industry, ensure you’re able to keep track of the business remotely and can periodically check in on how things are going.
Insights On Recruitment That Could Affect Franchise Performance
A critical aspect of operating any successful franchise chain is getting the right franchisees on board.
You’re facing a lot of competition as the franchising industry continues to grow. International brands, local giants, and new innovative entrants to the market require you to step up your game. Not only are you geared for growth, but you need your new locations to compete with the best.
“One of the success factors for franchise systems is market penetration which is often achieved through expansion, by opening new stores with quality standards that match the brand – through franchisees,” says Ethel Nyembe, Head: Sales Optimisation and Planning at Standard Bank Group. “The wrong fit, however, can seriously set a franchise’s growth back many years or cause irreparable damage to its reputation.”
Besides the challenge of trying to make your brand more appealing to franchisees in a competitive market, acquiring the right candidates to join your franchise requires the following:
1. Draw up (and adhere to) a checklist
Not all franchisees are created equal, and even a candidate with previous franchising experience may not be the right fit for your particular brand. Alternatively, you can decide to train a potential franchisee if you see potential.
When narrowing down your list of franchisee candidates, consider the importance of this:
- How important is prior experience in terms of the franchisee’s ability to become profitable in their first year?
- Does he or she have the necessary resources to train and support the franchise?
“You need to be clear about what you want; don’t compromise on your required skills, priority traits and qualifying requirements,” advises Nyembe. “There’s too much at stake financially and reputation-wise to settle for second best.”
2. Network in the right circles
Sometimes, if the talent doesn’t come to you, it’s beneficial to seek it out physically. Industry events are a great place to come into contact with people aiming to own and run their own franchise. If not, your presence at these functions will expose your brand to more potential people to do business with.
“During key annual industry conferences and trade shows (such as The International Franchise Expo), make a point to send attendees, to sponsor or to exhibit in order to increase brand visibility,” advises Nyembe. “Also consider participating in panel discussions.”
3. Get to know your new brand representatives
While personality tests and numerous meetings can give you an idea of whether you’re choosing the right candidate, it’s important to consider taking a more advanced approach to franchisee recruitment.
“Selecting the right candidates to represent your brand is critical to your operation’s ongoing success,” says Sue McConnachie, Vice President, Quality Credit Services Limited. “These franchisees will be the face of your company and you need to trust that they will maintain your brand image.”
The selection of franchisees is crucial because, as it carries both long- and short-term implications, including:
- Reducing franchisee failure and turnover, while increasing success and profitability
- Protecting and developing your brand’s reputation
- Focusing your resources on business planning and management instead of problem-solving
- Decreasing exposure to legal implications when a franchisee’s conduct is negative or their franchise is unsuccessful
- Minimising legal and collection claims against delinquent franchisees.
Selecting your next set of franchisees requires establishing a checklist before viewing any CVs, dedicating time to seek out potential franchisees, and ensure you’re choosing people who will take as much pride in your brand as you do.
The Wolf Within Bertus Albertse: Body20’s CEO
FASA newcomer – Bertus Albertse’s, Body20 CEO, Electro Muscle Stimulation machines are dominating the health and fitness market. What you need to know now.
- Player: Bertus Albertse
- Established: 2014
- Contact: +27 (0)872310359
- Visit: body20.co.za
Energy was flowing from every part of his physiology, a wolf-like hunger for business emanated from his speech, his body language was expansive, excitement filled every corner of his eyes, and so flowed forth the personality of Bertus Albertse, owner and CEO of Body20, within the context of our interview.
Run like the rabbit
The Body20 franchise system, a major player in the EMS (Electro Muscle stimulation) segment of the global fitness market has recently won the FASA newcomer of the year award outperforming amongst other brands, Rocomamas. This speaks volumes of the drive and entrepreneurial spirit within Bertus and his purposeful and motivated team.
His favourite quote, which he shared with a great deal of passion, reveals a lot about this young entrepreneurs’ attitude:
“A rabbit always out runs the fox because the fox runs for its lunch and the rabbit for its life”
Despite personal setbacks Bertus moves forward at a rapid pace towards his purpose. He has built his business around the concept of agility which has allowed him to outgrow the competition in this segment of the market in very little time. He was adamant that whatever slows you down in business has to be removed from your thinking and systems.
The CEO of Body20 has and continues to craft his own world within the global fitness space through creativity and agility as catalysts. Smiling broadly he gave a tip that I believe every young entrepreneur should listen very closely to:
“To dominate the market find out what the competitors are not willing to do and do that with great purpose and speed.”
His personal drive and creativity has led him to be the first EMS franchise system in America and it is worth a mention that Body20 has also launched its first outlet in Dubai recently.
Stay hungry for success and expansion
Through creative thinking Bertus has ensured that a diverse application of the EMS system is constantly veering away from its traditional use and as a result Body20 studios offers a progressive , enjoyable, and results-driven experience to their clients.
As an entrepreneur with a global view Bertus shrugs of complacency and stays hungry for success and expansion. He fully realises that he is only as successful as his team members and franchisees are successful and therefore invests a significant amount of money in training and support structures as to ensure that he leaves other leaders behind.
He is grateful for the good mentors that he has had and continues to thrive on the learnings that he has gained from them. From his various mentors he has learnt to take “extreme ownership” for his business and life and he became more critically aware of his weaknesses and strengths by remaining “coachable”.
He takes pride in the Body20 coaches that has developed into studio owners and gained equity shares in franchise outlets due to their performance and has a passion for creating a motivating environment from within which others can thrive.
The author, being a keen observer of peoples’ behaviour recognised that Bertus leads by example, not only is he in great physical shape, but he diligently works on his attitude and mind-set and adds the powerful multiplying ingredient of continuous learning to his success.
I was a witness to the effect caused by the motivating climate and agile principles incorporated into the Body20 system. I met very energetic and passionate staff members before and after the interview and bore witness to several energised employees entering and exiting the training room at the head office.
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