Opening a business is a game of survival. The failure rate of startups is very high. After a decade, most businesses go bankrupt and close down. However, even when your business has experienced success and becomes an industry leader, there is no guarantee that it will continue to persist forever. Many companies that once were household names have now perished from the market and public consciousness.
However, if the entrepreneur has the right skill set, there is a chance for success.
The question is, how does one achieve and master these skills necessary for running a business? Through experience, of course.
While school can prepare a person for the challenges of being an entrepreneur, there is nothing like having real-world experience. But, not everyone has the luxury of trying and failing.
Investing in a restaurant franchise is a great way to gain the experience you would need to become successful as an entrepreneur. It is less risky, and you have the backing of a major company to train, provide aid when necessary, and guide you through the process.
Here are the skills that you gain from becoming a franchisee:
Desire to Learn
A successful entrepreneur is a person who is willing to continue improving their knowledge and their skills to adapt to the changing market. Far too many entrepreneurs believe that they have the answers to every problem, and they are better than members of their staff in performing every task.
However, an entrepreneur should be open-minded. They are aware of their own strengths and seek to improve their weaknesses.
Learning should be a continuous process for an entrepreneur. They have to learn how every part of the business works, and how each member of the staff contributes to the success of the enterprise.
More importantly, they have to learn every new trend that emerges so they can leverage it to improve and grow their business.
Franchising can instill the value of learning. While you own the business, as a franchisee, you and your staff will receive a lot of coaching. You will also bear witness to how large corporations also adapt to changes in the market by utilizing trends. It can also show you how to best handle a crisis.
Every entrepreneur must be comfortable interacting with numerous people every day. You do not have to be an extrovert, but it helps to be confident enough to face anyone, regardless of their stature.
An entrepreneur has to communicate and connect with employees and customers on a daily basis. They should be able to motivate staff to work harder and give a satisfactory buying experience for customers. At the same time, they also have to be pleasant to customers. Nowadays, customer service is itself a form of marketing. If a customer walks out of a transaction unhappy, they are unlikely to return or recommend the business to someone else.
On the other hand, they also have to meet important people in the business, including the franchisor. The entrepreneur is still a part of the corporation and, therefore, has to answer to someone else. They need to be on good terms with their franchisor, too.
Ability to Follow a System
A franchisee has the advantage of having a system in place that has been tested and proven to be successful. The only thing they need to do is to follow.
Being a follower may not be something that a person expects when they decide to run a business, but it is a necessary part of the venture. A business has to have processes that each member of the staff, including a boss, has to follow every day to ensure that all parts are working efficiently. If the boss does not follow a process, the staff will not be motivated to follow it, either. Moreover, it can cause conflict with the franchisor.
Running a franchise shows what a productive process looks like. It also proves that having a streamlined process improves productivity. Once you have established a system that works, all you need to do is to follow it.
There is no such thing as a safe way to do business. There will always be a risk of error. However, starting with a franchise increases your chances of achieving success. Not only is the rate of failure lower than a startup, but it also equips you with the knowledge and skills that you would need to become a great entrepreneur.