I had come to Charlotte to help a business owner considering expansion. We drove around and she showed me a location down a side street, on the back side of a grocery store with limited visibility. She told me she expected to be doing $3000-4000 per day. “Why is that?” I asked. She replied, “Because the competitor across the way has a line out the door day and night. That’s startup business Sin#1 - Unrealistic expectations. 
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Archive for the ‘Franchise’ Category
5 Sins of a Startup Retail or Franchise Business
What Buying A Franchise Means: Driving A Maserati
I was the CMO for the second-fastest growing company two years running in Los Angeles County. It was a franchise I hooked up with, taking it from start-up through about 125 locations across the U.S.
I’d tell franchisees during discovery day, “You get out of it what you put into it.”
Many franchisees are having a great year. Through running a business they are able to use all their gifts to live a life few have the guts to even dream about. But buying a franchise can come with a steep entry price.
It’s like buying a Maserati (the franchise system) and having to learn how to drive it. If you want the thrill, you have to come to it with a realistic attitude.
Maserati GranTurismo
Some franchisees buy a franchise and expect it will solve everything; they leave the Maserati in the driveway expecting it to drive itself. But you can’t buy any business and expect it to run itself. You have to understand it if you want to make money.
Despite whining by some franchisees about the recession, things like putting in gas are things neither the economy nor the franchisor is not responsible for.
To drive it, you have to have to fill it up.
Ignore that and you go nowhere.
In a franchise, you have to have a reliable, duplicatable experience or customers don’t come back. That means you are there every day to see that customers are getting what they expect. You don’t get a second job to support the franchise – unless you want to fail.
To succeed means you have to change your schedule to accommodate the business; not the kids, the school or the spa. And don’t put your kids in charge of the Maserati!
You can tell the commitment level of franchisees by how often you find them in their store, restaurant or office. It usually shows in the customer’s hit-or-miss experience. You can also tell when you ask to see the owner and are told, “Oh, they’re never here.”
Pride of ownership.
It’s what successful franchisees demonstrate every day.
You want to succeed with your franchise? Don’t leave the Maserati parked in the driveway, grab the steering wheel, fill it up and drive it.
And if you run a luxury boutique, regional chain or other retail – the message is just as relevant for you.
Want to find out how to really drive your business? Grab a copy of The Retail Doctor’s Guide to Growing Your Business (Wiley) or hire him to speak for your group.
