Tips to Success in the
Each individual who chooses to own a franchise does so for multiple reasons. Richard J. Judd and Robert T. Justis devised a list of ten basic steps new franchise owners must keep in mind. The first step is to self-evaluate. It is important for new franchisee owners to understand the commitment this new business will require of them. They must also have a grasp on their person strengths and weaknesses. One cannot simply ignore his or her weaknesses, as they may result in failure of the franchise. One of the most important questions a new franchisee owner must answer is “will this new franchise make me happy?” When deciding on the type of franchise to start, one must consider his or her personal interests. If the business is enjoyable and relatable to the new franchisee, the owner will be more interested in it. This leads us into the second step, the business arena. One must thoroughly research the type of business and the necessary distribution system. Questions one may ask him or herself are, “Is this type of business seasonal? Is there direct competition in the area? What types of government regulations may affect the success of the business?” Upon completing research, a potential franchisee may now contact multiple franchisors in the chosen industry. By contacting multiple franchisors, the potential franchisee is able to review the opportunities and decide which one is the best fit. The third step is known as the four P’s of franchising- product, profitability, process and people. The franchisee must understand the product the chosen franchise is known for. This product must be in high demand and have a good value. The process in which the business is run must be established in order to achieve success, also. The franchisee will learn how the product is distributed. Next, profitability is one of the most important aspects of the...
Please join StudyMode to read the full document