7 Habits of Highly Successful Franchise Owners

1. Don't buy into a franchise for the wrong reasons. 

The fad of the month will soon lose it's zeal.  Thorough research, including working in the business as an employee is critical to understanding what goes on day to day.  It's not about "loving fitness" or "enjoying working on cars", it's about your future financial well-being.  You are not buying into a "sure thing".

2. Don't overextend yourself to get into a franchise. 

Often the expenses that go along with owning a franchise are underestimated and people risk their homes, retirement plans, even the money of their close family and friends to get started.  Have enough working capital to get through at least a year of "depressed" sales, or don't start.  Do extensive work to determine your break-even, and be realistic about how quickly you can reach that level of revenue.

3. Be prepared for long hours.

Many times prospective franchisees look at successful owners and covet the life style they have attained.  The reality is that those who have achieved to a  level that affords them some luxury have earned it through many years of effort.  It just doesn't happen overnight.  If you are not willing to devote yourself to the enterprise, you will suffer the consequences.

4. Trust in the system. 

People pay tens of thousands of dollars to become part of a business system and then often immediately think they can do it better.  This is a recipe for disaster.   For at least the first year, follow the guidelines and instructions found in the operations manual as closely as possible.  After that, if modifications are necessary, make them in small increments and develop specific measures to track their effectiveness.  In short, don't leave the nest until you know how to fly.

5. Provide exceptional products and/or services, honestly.

It's not enough to be average, you must commit yourself to trying to create an experience that is noteworthy.  Word of mouth is the cheapest and most effective form of advertising and is critical to the initial success of most franchises.  A reputation cannot be bought, it has to be earned, and a lost reputation is near impossible to restore.

6. Learn from your colleagues.

Take time to visit the successful units in your franchise system.  Pick the brains of the owners and develop an idea of how they operate.  Incorporate into your operations the best practices of the people who are at the top of the ladder in your franchise system and soon you may find yourself joining them.  Nurture relationships with fellow franchisees, your franchisee association, and with representatives from the franchisor.  Understand that you will never "know it all" and that there is always something that can be learned from other individuals in the system.

7. Don't blame the franchisor, the advertising or the contract.

You selected the system, you agreed to the terms.  When times get tough, it is easy to deflect responsibility to things "beyond your control".  This is almost always going to be counterproductive.  Focus on the things you can change, not the things you can't, and utlimately if you believe that success is not attainable within the existing franchise structure, act within your dealer's association to negotiate change.  Try to take a "common ground" approach with your franchisor to develop strategies that are beneficial to everyone involved. 

Successful franchisees practice these habits.  While they do not guarantee success, they maximize the probability of profitability.  If you are doing all these things and are still losing money, it is probably time to rethink the viability of the franchise concept and do everything to divest as quickly as possible.