Nearly everyone has dreamt of becoming their own boss at one point or the other in their lives. But for many people, the thought is often short-lived and usually springs to mind after a hectic word day or difficult discussion with their employers. That aside, the idea of owning a business has gained traction among young people who have been made to adopt a more entrepreneurial mindset after joining the labor force during one of the most economically difficult times in recent years. The millennials (also called Generation Y) consider business ownership as a learning opportunity that allows them to be creative and flexible.
There are many options to consider for people who are courageous and persistent enough to become their own boss, including consulting, freelancing, building a business from the ground up, and more. But another great option to be self-employed – and one that you may not presently have in mind- is to start a franchise business. The pro: the franchisor has already done the groundwork for you. The cons: not everyone has what it takes to operate a business successfully, even with the guidance and support of a franchise system.
Here are three pieces of advice to be a successful franchise owner under 30:
1. Be a Pusher
While you’ll need to make an initial financial investment to buy a franchise, you must avoid thinking you have bought yourself a job. If you fail to think bigger than that, you will continue to work in your business, but not on your business.
Also, you will have to invest a bit more in the early operational years of your franchise to benefit a lot in the long term. For example, you might need to pay your workers extra to increase store hours until sales increase.
A lot of new business owners concentrate on things such as cost reduction, inventory accuracy, and reducing their store’s electricity bill. No, this is not what matters when you have just started your business. Your focus should be on generating as much profit as you are able to, and all other things will work out well in the end. Note that as a franchisee, you cannot “save your way to wealth.” There are plenty of opportunities out there to explore, and you need to take advantage of them as early and as frequently as possible.
Finally, don’t forget that you will get a strong built-in support system when you buy a franchise. You will also receive training, tool kits, and different resources to help you succeed, so you will never be left to face your business challenges by yourself.
2. Comb the Market to Create Breakthroughs
One of the best qualities you can have as a prospective franchisee is the ability to recognize business opportunities. For instance, figuring out a consumer need in your target market and how you can meet that need will help you achieve success in the long term. To do this, look for a retail industry or category that you like and speak with other franchisees in that area to know the challenges they have faced, what has helped them grow, and other important things.
Once you start operating your franchise, you will have plenty of opportunities to remain relevant in your space. Note that you need to know your target market and its demographics to stay up-to-date with the newest customer trends, observe competitor actions, and continuously share knowledge with your workers and customers, so they can know more about your business.
As a franchisee, you have to push yourself to grow your business based on the current industry trends and customer needs by leveraging the franchisor’s new offerings. Let’s say when you first launch your franchise store, you only sell batteries. But now, the franchise company has introduced new products like light bulbs and started providing repair services. You need to follow suit, so you can expand your product portfolio and increase your bottom line.
3. Don’t Stop Learning
It’s important to know that your first operational year as a franchise will be the most difficult and that you need to go through a deep learning curve. Regardless of your experience in related fields or experience managing another person’s business, you will never be fully prepared for the first time you are in charge.
As your franchise business grows bigger, you find that it’s no more about you alone but also about your employees. And the only way to continue paving clear paths for them (and you) is by continuing to learn. If you don’t have this mindset, your business will either remain stagnant or collapse.
You can see that it requires a lot of sacrifices, determination, and persistence to run a franchise business profitably and maintain that profitability for a long time. But with the right mindset and foresight in the first operational year, the ability to identify and leverage opportunities, and the willingness to keep learning continuously, you will find that the satisfaction of being your own boss and reaching your personal goals makes it worthwhile.
