ARE YOU RIGHT FOR THIS BUSINESS?
Shared values and compatibility are key to your success as a franchisee.
As you are reading this magazine, you are probably looking for a franchise system to invest in. You may have already contacted a few franchisors and the business looks good and you have a gut feeling that you would fit there.
Whilst gut instincts may work for you in some instances, when it comes to making an investment decision on a franchise system, leaving it to instinct is simply not enough.
SOUND BUSINESS DECISIONS TAKE RESEARCH
The franchising sector has many business opportunities, from well-known franchise systems to start up franchises looking for their first franchisees. But basic research
will indicate that what has proven a successful opportunity for one person may not be as fruitful for the next. So how do you move beyond the gut feeling that you will be successful?
IT’S ALL ABOUT YOU
This article will focus on you. There are many sources of information regarding the steps to take when buying a business, but very few that will help you decide whether running your own business is the right step for you and if it is, what sort of business should you be considering.
COMPATIBILITY
As with personal relationships, business relationships built on compatibility are much more likely to succeed. You really need to know yourself and understand what makes you tick, what is hard wired in your brain. You need to uncover what it is that will deliver the likelihood of long-term success and satisfaction for you when it comes to selecting your investment.
You may be gripped by the question – “have I got what it takes?”, but rarely ask it out loud. It is even rarer to get an affirmative answer in advance of taking the leap into business ownership. This one question has hindered countless individuals from achieving their dreams.
Granted not everyone has the ‘right stuff’ to be a franchisee, but even more frequently the issue is one of being the ‘right fit’ for a particular business. Two different things and both are important.
SHARED VALUES
Shared values are the number one indicator of compatibility. Our values define us: they govern our desires and how they are expressed. Values are what motivate us and shape our behaviours. But how does that relate to selecting a franchise system? Think about yourself: do you need to be in control, do you enjoy winning, do you value security, do you enjoy developing relationships?
If a franchise system values innovation and risk while a franchisee values traditional risk-adverse business tactics, it’s easy to see how that would quickly create tension between the two. Ensuring that the core values of what drives a business and the franchisee align with one another is the key for long-term compatibility and success. When values are at odds, the stress caused by the misalignment can be painful.
Ensuring that the core values of what drives a business and the franchisee align with one another is the key for long-term compatibility and success.
SHARED STAGE OF GROWTH
What stage in life are you at? Age range? Gender? Corporate refugee? Adding
to your business portfolio? Previous business owners? Immigrants? Former defence force or emergency service personnel? Returning to work after raising a family? FIFO worker looking to settle back home? Looking to establish in a regional location?
Franchisor and franchisee need to share a similar stage of growth. Businesses, like people, evolve over time. Consider this: if a franchise system is in an early stage of growth they likely have not fully developed best practices and market penetration, and could still be developing the brand as a franchise. A system at this stage would need a more entrepreneurial candidate who is comfortable with the hands-on ownership and collaborative culture between the franchisor and franchisee that is common in the early years of a franchise. A later-stage candidate that excels at exploiting systems and following a well-developed process would find an early-stage franchise system challenging.
SHARED CULTURE
What sort of person are you? Do you describe yourself as collaborative, competitive, innovative, family-like?
Culture evolves through the values of an organisation. Finding yourself in a place of cultural misalignment creates dissatisfaction and will eventually decrease your performance. We’ve all been in jobs or situations where we were not a good cultural fit. People often discover this when a company they have been working for is taken over and new management comes in. The original culture may have allowed for autonomy and innovation – the new culture may be one of micromanagement and rules. The emphasis when selecting your business opportunities as a franchisee should be compatibility, and not gut feeling.
WORK STYLE
What is your preferred business environment? i.e. structured, formal, functional, busy, efficient, friendly, interactive. Are you assertive, analytical, amiable?
COMPLIANCE
Do you find it easy to follow the rules and regulations in a business? Compliance with the system is important in a franchised business. Are you open to that challenge?
CORE COMPETENCIES
How do you rate your skills in leadership and vision, sales planning, management, HR and training, marketing, public relations, administration, customer service, technical, finance and operations? A small business owner needs a variety of skills to succeed, but most of these skills can be learnt and franchise systems generally have great induction and training programs.
CONCLUSION
Compatibility is the crucial determinant of your future success. Competencies can be trained.
Bill Lockett is the director of people2business, a franchise-specific solutions provider offering a suite of customisable psychometric assessments for both franchisors and franchise applicants.