7 Key Traits Of A Highly Successful Franchisee

If you are at a point in your career where you're entertaining the possibility of buying a franchise, you need to understand the psychology that is behind a franchisor's decision to award a franchise to the "right" person. There are certain, essential skills and personality traits that encompass a "model" franchisee, and before you go any further down the road to franchise ownership, you had better do a self-inventory and make absolute certain you have them.

Obviously, if you are considering a handyman or home improvement franchise and you've never used a hammer or a saw, this could be a serious problem. Or if you are looking at a certain business to business franchise, but you hate selling, you are all but guaranteeing misery. But those aren't the king of skills that I'm referring to here.

Regardless of which specific franchise you are considering, you need to possess and exhibit some basic, key skills that will fuel the overall potential for success of your franchise business. Franchisors have spent plenty of time and money researching what the profile of the ideal franchisee looks like. Here are a 7 mandatory traits:

1. Commitment to following a proven system. Franchise systems are in place because they work. It's that simple. If your nickname is "Genius" because of your brilliant, super creative ideas that you come up with daily, then franchising is not for you. Go back and read the previous sentence again. It is imperative that you are passionate about the product or service and are completely committed to executing the company's marketing plan. If not, consider starting your own business.

2. Excellent People Skills. You need to enjoy working well with others as a team. If you don't like interacting with others, you'll become stressed, your employees and customers will sense it, and ultimately your business will suffer. Instead, display the positive behavior that you want your employees to model when dealing with your customers. A happy, positive, "customer is always right" attitude must prevail at all times by you, your managers, and the employees.

3. Strong Work Ethic. A must for any potential franchisee. If you don't possess strong, disciplined work habits and have burning desire, you might as well work for someone else and punch a time clock. Any successful franchisee will tell you that they work until the job is done. They don't quit when the whistle blows. They'll do anything it takes to get the job done. Having true passion to work for yourself will tend bring out this work ethic automatically.

4. Well-Capitalized. Obviously, franchising costs can be significant. Franchisors will not move forward with candidates that are under capitalized. You're facing an initial investment, the franchise fee, and ongoing royalties due to the franchisor. Most small to medium sized franchises require a franchise fee of $5,000 up to $30,000. Royalties are usually a percentage of the income that your business generates, which you in turn pay the franchisor, typically ranging from 3%-7%. Don't let these costs scare you, though. In return, you are receiving the use of the "brand", which is significant in that you'll attract customers immediately. Many franchisors offer assistance with financing. Also, you'll tap into the volume discounts on product purchases you're entitled to as a result of being a franchisee.

5. Willingness To Ask Questions. Asking great questions is a true sign of strength. A successful franchisee will ask the franchisor's support team or another franchisee for advice when he/she is stuck or unclear. You must be coachable and be prepared to implement the advice you receive.

6. Risk Averse. While it's true that there is no guarantee that you will be a successful franchisee and there is some risk involved, your chances of failing are substantially reduced with a franchise, as opposed to starting your own business from scratch. Statistically speaking, U.S. Department of Commerce states that franchise businesses are exponentially more likely to succeed than individual new start-ups.

7. Finally, research, research, research. And seek out assistance. It's virtually impossible to conduct a thorough franchise search alone. A seasoned franchise consultant can arm you with the knowledge you need to make an educated decision on the business that is the closest fit to your specific requirements.

Franchising is a great business model if you have the necessary skills and mindset to follow a winning formula. If you truly possess the characteristics spelled out above, chances are you have a solid foundation for success as a franchisee.