Do You Have a Clear End Goal in Place for Your Business?

Multi-unit franchising is a business model that gives entrepreneurs the chance to begin a venture with a recognized brand, products, and services. Franchising offers advantages like lower startup costs and assistance from the franchisor, but success is not certain. In fact, according to the International Franchise Association, approximately 20 percent of franchises stop operating within the first year, and another 10 percent within the second year. Hence, it is essential to have a precise understanding of one's objectives and plan for the future to set up a successful franchise.

Identifying your reasons for owning and getting into the franchising business is a crucial first step in creating the future you envision. Ask yourself: Are you aiming for a quick return? Do you want to be your own boss? Are you passionate about the brand or product? Aicha Bascaro with the American Franchise Academy emphasizes that, “For a franchisee to be able to promote themselves from being the person that’s running the business every day, they need to look at what is their ‘Why.’” Comprehending your motivations can aid in establishing a plan that meets your objectives and puts you on the path to success.

A clear end goal is essential for building a successful business. Consider what you want to achieve in the long term, whether it's to build a profitable business to sell or to develop a team that can take over the operations and give you options and freedom in the future. Focusing on building up your employees will create a strong team that can maintain and grow the business even if you are no longer involved in the daily operations. As Jeff Bannon, a succession planner with The Rawls Group says, “The only way to get to that place where you have options, is if you are developing your people.”

It's essential to have a definite destination in mind, but it's also important to savor the process of constructing your business. Multi-unit franchising can be a fulfilling and exciting journey; however, it can also be difficult and tense at times. So it's essential to take a moment to appreciate your successes and find joy in the journey.

A succession strategy is essential to take your business from point A to point B. Even if you intend to remain part of the business for the long term, it is important to have a plan in place for when you want to transition out of the role you are currently in and/or eventually leave. This could involve selling the business, transferring it to a family member or dependable employee, or simply taking a step back from the day-to-day and enjoying the rewards of your hard work.

Finally, understanding your objectives and strategizing for the future are key to creating a successful business. Recognizing your motivations, having an unambiguous aim, appreciating the process, and preparing a succession strategy can construct a strong base for your venture and lay the groundwork for long-term success.

For more insights, watch the short video focused on Multi-Unit Franchisee Success – Understanding Your Goals and Planning for the Future, featuring Aicha Bascaro, President of the American Franchise Academy, and Jeff Bannon, a succession planner with The Rawls Group.

Kendall Rawls knows and understands the challenges that impact the success of a family-owned business.  Her unique perspective comes not only from their educational background; but, more importantly, from her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners.  For more information, visit seekingsuccession.com or email info@rawlsgroup.com.