Top Five Tips To Opening A Successful Location
We know that it can be scary to think about opening up a new location for your franchise! You want it to be successful and you’ll do whatever you need to do in order to make that happen. At the National Franchise Institute, we know there are a few key things you need to focus on to be successful and we want to lay those out today. When you are successful with these five aspects of your business, you can have the confidence that your franchise is going in the right direction!
1. Get Your Financial Ducks in a Row – Financing is the Fuel That Fires the Engine!
o This is as close to ‘Step #1’ as you can get. You can go to a car dealership and fall in love with the most incredible car imaginable but if you can’t get financing for it, the car sits on the showroom floor! If your goal is to build a new location and you are not sitting on a pile of unencumbered money, get funding NOW!!
2. Hire the Right Team – There is Only So Much of YOU to Go Around!
o What tasks can only be done by YOU?
- Who is best suited to hire the employees for your new location? YOU!
- Who is best suited to train the employees you hire? YOU!
- Who is best suited to scour the town to find available real estate locations? NOT YOU!
o Whether it is real estate, construction management, or legal representation, the time and money you save in the long run by hiring experts in key areas far exceeds the investment in their services.
o Avoid the ‘friends and family’ discount or the ‘favors’ of hiring relatives. Your holidays will never be the same…EVER!
3. Know Your Costs – A Ready-FIRE-AIM Approach Can Be Deadly!
o Establish a clear target that takes hard costs, soft costs, and contingencies into account.
o Frugality is good but cutting the wrong corners seldom ever leads to lower overall development costs.
o Beware the urge to shoot first (spend money) and aim later (attempt to estimate a budget without knowing all of the variables). Shooting yourself in the foot isn’t fatal but it sure hurts a lot!
4. Know Your Development Timeline – Time is ALWAYS Money!
o An ounce of prevention is sage advice — waiting too long always costs more
o Not acting when the time is right can also be a detriment.
o Due diligence is your friend. You may not like or agree with the zoning and permitting requirements but you can be sure that you will live (or die) by them.
5. Cover Your Assets – It’s Not About What You MAKE, But What You KEEP!
o Insurance covers the expected and the unexpected, yet problems cannot be solved by insurance alone.
o Iron sharpens iron. Your advisors – you know, the ones who see ten steps ahead of you – are another form of insurance. Their expertise prevents the wrong money from going out the door!
o Prepare, trust, and follow your business plan – it is your roadmap for ending up at the right destination: OPEN FOR BUSINESS!
You may have noticed that each of these five tips focus on the concept of planning ahead! At the National Franchise Institute, we believe in the power of preparation in order to be successful. We know that when you take time to prepare and focus on these five aspects of business, you will find success for your franchise!
To your success…