What Skill Sets Should You Have to Own a Franchise?
When applying for a job, one of the first items people look for are the skills needed / required for the job. Yet when looking at business ownership, the industry is one of the first pieces of information people look for, and for different reasons. Either they are familiar with the industry or they believe it is a thriving industry and therefore, will produce high revenues.
What should be the focus?
Why you want a business
Your skill sets
Required investment level
Depending on these answers, it will lead us to an understanding of which business models and industries would be a good fit.
Are you looking for additional income as you keep your FT position, then take a look at executive owner or semi-absentee models. Are you looking to build something now as you’re interviewing or get out of the corporate world & be more in charge of your life? - that opens up an array of options. Have you managed & motivated people or a team? Are you able to focus on the big picture items and allow others to do daily tasks as you focus on the operations? At the foundation, the widgit or service is not the focus, of interest, sure, but the business model and skill sets needed are the first items to consider. As you can see, there are many factors to consider that play into the decision.
The reason this is doable, yet goes against initial perception, is that franchising allows someone to enter into business ownership within different fields because they’re going to be following a business model that has already been structured with processes & procedures along with franchisor support. If someone was to start something from the ground up, looking at varying industries would not necessarily be a smart option. Under those circumstances it would be advisable to stay where you're comfortable and with what you know best. Franchising can open doors into ownership of industries that wouldn’t otherwise be available as options.
This is an interesting topic to discuss because typically most people do not consider their skill sets in their initial search. They might attribute industry more so than their experience at a foundational skill needed to operate a business. The first industry that most mention: Food! This is by far the most popular one, and with good cause. Some of the most famous brands we know in general business and franchising are food - McDonalds’, Chick-fil-A, Dunkin’ Donuts, Subway - but does this mean that the business model embodies the criteria you’re looking for in a business? Do you have the skill set for food? Do you know what it takes to run a food business?
There are many different types of industries that are options to investigate:
With so much to consider let’s break down some of the top skill sets that franchisors are looking for:
1. Management Skills
Potential franchisees who have experience in managing and motivating a team understand a core essential - people want to like where they work and to have respect for who they work for. To feel appreciated for their efforts and to feel like there is personal growth in themselves and the company. A good leader will understand how to lead and inspire, therefore, by default this will create a winning culture.
2. Decision Making / Problem Solving
Sounds easy, but making good decisions based on the information given at any time is essential in operating a successful business. There will be many decisions that need to be made, some will be difficult and some will be easy. But do you know how to analyze pros and cons, the long term effects and staying the course to the values of your business is important. Someone who gets paralyzed in making decisions will most likely not feel comfortable making decisions for a business that affects their employees and potential sales.
3. Communication - Verbal & Non-Verbal
To find the right franchise people will go through a series of calls, webinars, videos etc. of which is called an investigation. During this process the franchisor & potential franchisee learn about each other and their communication skills. How is the format structured to communicate all the information to the potential franchisee? How does the potential franchisee communicate with the team members via verbal and written and sometimes zoom webinars? Both parties are gaining insight into how they will fit into the culture of the brand and values.
4. Process Oriented
Since franchise systems are built around processes, policies & procedures it is important to find candidates that will follow these processes. The investigation will give insights as to how someone will follow the process that is making the brand be successful and grow.
5. Time Management
A skill for every aspect of our lives regardless of owning a business. How you prioritize your tasks to be effective in your business is important. Whether you’re looking to operate the business as an owner operator or semi-absentee, your time management is an essential skill.
Having these discussions are helpful to outline criteria and get to the heart of what clients are looking for. Sometimes they realize that the right business was something they never would have considered. If you get into an industry that is about your passion….will you be helping or hurting your passion? Have you figured out how you’re going to run the business on a day-to-day basis to understand the full scope of your involvement. What will you be comfortable with at the end of the day? Get a plan together of what you want your daily life to look like along with the next 5 years to figure out how you’re going to achieve that. Then fill in with concepts that best help you achieve these goals.
Owning a business can be a rewarding experience, but like anything else, there are pros and cons. Having a good understanding of which concepts you match up with and where you should focus your efforts help narrow the filter so you can spend your time researching the best ones for you.
If you would like to listen to a podcast that walks through more information on franchising, please click: Podcast
If you would like to find out which concepts match well with your skill sets, reach out to schedule a casual call by clicking the logo below: