There are some terrific lessons that all business owners can learn from the franchising industry:
More people are optimistic.
As a whole, franchising expanded in 2011, following a contraction in 2010. And franchising is seeing even stronger growth in 2012. Economics aside, in the franchising industry, the success of a whole franchise system relies on the success of its franchisees. So the motivation and support from the franchisor (and from other franchisees), keeps everyone focused and optimistic.
America depends upon the franchise economy.
According to projections, by the end of this year the industry’s nearly 800,000 franchise establishments will employ 7.8 million Americans and boast revenues just short of $740 billion, according to Price Waterhouse Coopers. Wow! Now that’s impressive!
Successful businesses adopt a “servant” mentality. One of the most successful franchises, 7-Eleven, has a corporate culture based on “servant leadership,” according to Joseph DePinto, the company’s CEO. DePinto said this means “leading with influence, versus leading with power.” In this business model, CEOs don’t reside at the top of the pyramid, but rather at the bottom, where they serve the customers who occupy the most exalted position.
Everyone is an entrepreneur.
Some define an entrepreneur as the one who starts the business. In the franchise community, franchisors and franchisees all consider themselves entrepreneurs. The franchisor took the first steps to build, support and lead the system; yet the franchisees are out everyday on the front lines. They know what works and what doesn’t. Both work in unison to achieve the same goal and, if executed correctly, can become a powerful force in the marketplace.
Never stop innovating.
The definition of insanity is doing the same thing again and again, and expecting different results. Time to break the cycle. Franchises must remain current and meet the changing needs of their consumers. Within a successful franchise system, innovation comes from the individual franchisees just as easily as from the franchisor. Never squash creativity; encourage it!
Some have said that franchising is the catalyst to economic recovery and in many ways we are seeing examples unfold each day.
Want to be part of the solution? Maybe it’s time for you to franchise your business. In as little as 90 days, The Franchise Maker will launch you into the world of franchising.