Think that franchising is like buying into a job? If you end up only opening one location, then this is an accurate analogy.
However, if you end up opening multiple locations and learn how to manage them effectively, it can end up being a true business that can free you from the 9 to 5 paradigm that you are seeking to escape.
Here’s how entrepreneurs like Robert Bassam have done it in the past.
1) Pick a franchise that has an evergreen base of support
There are many different types of franchises out there, but not all of them will have the staying power that businesses such as McDonald’s and CVS has.
Ensure that the goods and services that a franchise offers resolves a fundamental need that the consumers in your area have.
If there is a gap in the market, begin building your first franchise until it becomes profitable.
2) Roll as much profit into buying new franchises as possible
While you may want to begin living your life the way you were before you went into entrepreneurship once your franchise begins generating profit, resist the temptation to do so.
At this point, it is time to begin using the majority of your profits to save up for more franchise licenses. After all, wouldn’t you rather earn $150,000 through three franchises then $60,000 through one?
We think you know the answer to that question.
3) Learn how to hire good managers and oversee them efficiently
Adding additional franchise locations can become something of an addiction once you do it successfully the first time.
However, you will eventually hit a wall, as you will not be physically capable of overseeing the operations of multiple businesses.
At that point, you will need to begin hiring managers that will do the overseeing for you, freeing you up to continue business expansion activities unabated.
Take special care to hire those that are committed to running a tight ship, though, or you will be wasting your money and ruining your reputation via an employee that will simply be there for the paycheck and little else.
4) Hire front office staff that is smarter than you
As you begin to amass a substantial franchise empire, you will need people smarter than you in order to operate the organization that you have built.
This goes beyond hiring competent store managers, as many people in your situation end up hiring marketing people, human resources experts, sales gurus, and other employees that significantly increase the effectiveness of a business through their unique expertise.
As smart as you think you are, there are people out there that are better than you in many areas. Bring them on board and watch your franchise empire achieve explosive growth.
5) Set sales goals – and specify rewards for surpassing them
Even if you have to cap your growth at a specific amount of stores within your region, you can drive further gains in revenue by setting sales goals that will motivate your team to reach heights that they didn’t even know they could hit.
By tying a juicy carrot (trips, consumer goods, free food, money, etc) to the end of the stick, they will be inspired them to work smarter and harder than they have before.