Keys to be successful with a franchise

If you are betting on the franchise As a model for growing your business, it is important to identify the factors that will influence the success or failure of your project. Converting your business into a franchise may be the best way to expand your brand, considering that franchisees are the entrepreneurs with the lowest failure rate.

Given that only 25% close their business before their fifth birthday, compared to 80% of independent businesses that close in the same period of time. It is not by chance the number of franchised establishments, whose turnover and employment they generate, increases annually.

According to Mundofranquicia Consulting, in 2014 there were 946 franchises in Spain, 1.15% more than in 2013, totaling 69,376 establishments, 11.8% more. This growth in the number of establishments does not mean that everything is easy and simple, as there is always a risk, lower than independent businesses, but it does exist.

A franchised business can go wrong, due to a bad location of the premises or because of the type of business you choose for your activity. Therefore, it is important to know the keys to be successful with a business of this style, before adopting this model to grow your investment.

What is a franchise?

A franchise is the granting of the rights to use a product, service or trade name, that a company gives to one or more people in a certain place.

This model allows you to take your products or services to other territories, without worrying about the daily operation of the business, or the selection of employees or the maintenance of the premises.

Keys to be successful

Not every business that is successful becomes a successful franchise, therefore, it is important to know what the keys are to be successful with a franchise.

Emerging market

It is necessary to investigate and know if you are going to operate in a emerging sector or not, what competition will you have and if the product or service you are betting on is a fad or not. So it is essential to do a market study and a business plan, which help you make the decision with objective criteria, such as the existence of sufficient demand.

There are sectors where competition is strong and demand is not so high, so if your company is in one of those sectors, you are facing a good opportunity. And it is that if you do not consider, having a business within a growing market, acquiring that franchise does not seem like a good option. Because there are always consumers hungry for alternatives, which can guarantee you success with a franchise, so focus on emerging markets.

Quality product or service

In any business that wants to be successful, you must have a good product or service, that are attractive to consumers and for those who are willing to pay. And there is no marketing strategy, public relations action, or incredible logo, that can save a bad product or service.

So to be part of a successful franchise, make sure you have a value proposition and a quality product or service, something new that can be replicated.

Choice of location

The franchise, usually, guides for the choice of venue, considering the location, the square meters, the characteristics, the state, the distance from other competitors or similar businesses, among others.

If the franchise is not involved in choosing the location, it is a bad sign, because there is no one better than them to know what is needed. But, on top of that, you have to investigate, search and probe the real estate market, in order to choose the most appropriate location for the franchise.

In many cases, the franchise itself approves or rejects the location you have chosen for your next business, as a guarantee of success.

A powerful brand

Another important point to consider, in addition to having the best possible product, is have a powerful brand support you and increase your visibility. Thus, it is essential that the franchise has a good name, a striking and well-designed logo. And since having a powerful brand also involves staff, who must identify with it, in due course, we must take care of staff training. This will help to provide good service, which is what the customer values ​​the most.

Likewise, it is essential to have a good marketing and advertising strategy to convey an appropriate message, and thus position the product and create a connection with consumers.

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