Franchising – Steps to Build a Profitable Business
Published on: 27 March, 2020
Reading Time: 5 minutes
To be a successful franchisee in Canada, it takes a person who has the determination and commitment to start and build an enterprise for themselves by putting in the work. It also takes the right franchising opportunity in Canada to make it happen. It’s a two-way relationship, between the franchisee and the franchisor. To build a profitable business for yourself, here are the steps that are going to put you in the position of most likely to succeed.
Choose a franchising opportunity that works
Before you put pen to paper and sign a franchising agreement, you should choose a franchisor with a proven track record. You don’t want to buy into any business model you’re not 100% confident can be profitable. If they’re a new company franchising with no other examples of successful franchisees, that’s a red flag. You may want to move on to another franchising opportunity.
Have enough capital to cover start-up costs
To be profitable, you need to spend money to get set up, to market your business, and to find customers. For this reason, many new entrepreneurs and small business owners fail when they don’t have the start-up costs to support their business. To be a profitable business as a franchisee, you need to have the proper financial support to acquire rental space, equipment, inventory, the necessary business licenses, and to pay staff.
To be supported by your franchisor
The most likely chance you have at having a profitable franchise is with a franchisor who is willing to help and support your success. Over time, you may need advice, training, help with advertising and marketing, and even financial assistance. If your franchisor isn’t supporting you as they should, you want to find one that will. It should not be a struggle to get someone in person or on the phone who is able to answer questions, resolve potential conflicts, and offer assistance in any way they can.
Understanding your local marketplace
As a business owner, you’re operating within a given region. To be successful at serving said region, you must understand consumer needs and how to exploit consumer opportunities. Your entrepreneurial instincts should kick in here. Even with the data, your franchisor may provide, a franchisee still needs to have their eyes and ears open to identify possible money-making or advertising opportunities.
Assembling the right team around you
As a franchisee, you’re hiring employees. Who you choose to represent your franchise also represents you. If you hire people that aren’t properly qualified or who you haven’t trained properly, how do you think they’re going to perform when they’re on the sales floor or in the field? Not well, of course. The right team around you is going to provide a lot of help and you know you’ll be able to count on them to fulfill every expectation of their role.
Focus on your customers
As an entrepreneur and franchisee, from the day you start, you should be looking for new customers. An excellent way to funnel new customers into your business is to pay attention to what existing customers are saying. If there are common complaints coming up, positive or negative attention online or offline, or comments you’re hearing with some regularity, pay attention to them. If your customer service isn’t up to snuff or if you’re not following through on expectations of service, as a new business in a new market, you won’t be around for long.
Dress to impress
‘Dress to impress’ doesn’t necessarily mean the style of clothing you choose although it can. What we mean to say is that in order to have a profitable business, you need to appear as a profitable business. Whether it’s on social media, on your website, or in-person, you can communicate reliability, trust, honesty, and authority. As a new company, even on a franchise opportunity, customers may not know who you are. You need to establish, from their perspective, that they can trust you. When you act honest and trustworthy, you’ll appear as such.
Leverage a strong social media presence
A lot of customers come across businesses when they are searching the Internet. Be it on Facebook or other platforms, set up accounts and build a following. Ensure you address to comment or complaints in a timely fashion, resolve issues, encourage customers to leave a positive review on your Facebook site, and post regularly weekly. If you aren’t well-versed in social media, you may want to start familiarizing yourself with how a successful small business on social media behaves. This is where a lot of customers can come from so it is well worth investing time on.
Profitable businesses are profitable because they know what makes them profit and they chase it. You don’t know what impact your marketing is having, for example, if you’re not tracking it. Perhaps where you’re spending the most money isn’t where you’re getting the most business. Alternatively, maybe your franchise business in Canada is a big hit with certain demographics and isn’t really making an impact with others. Just by paying attention to how money’s going out and coming in, you can tell a lot about what’s working and what isn’t. By making adjustments, you can maximize your profits while ensuring your expenses are justified.
Know when to ask for help
You may take pride in doing things on your own and getting things done. The truth of the matter though is that we all need help sometimes, especially in business. Fortunately, as a franchisee, you have supported. If you suspect you’re in trouble and you don’t know how to turn things around, be honest and ask for help. Your franchisor may be able to recommend some solutions and help you regain your confidence. It may be something simple you haven’t thought of or you may need something highly creative to get you back on track. Either way, don’t be afraid to ask for help. Remember, your success is their success and there’s an incentive to help you.
Building a profitable business takes time, effort, investment, support, and sometimes luck. If you truly want to build a small business that works for you, find a franchising opportunity in Canada that works for you as well.
Metropolitan Movers is one of Canada’s fastest-growing moving companies with significant profit opportunities to its name. Are you an aspiring entrepreneur looking for their big break? Start with a profitable idea from the start, be strategic, and work with a company that will support your success. Contact a representative today to get set up with a moving company franchising opportunity that will work for you.