Characteristics of successful franchisees

Q: Is going the franchise route a better choice than starting your own business?

A: During the past several decades, franchising has become not only a uniquely American institution, but also one of the leading doorways into small business ownership. Every year, thousands of individuals choose to get into business ownership via the franchise route. But not everyone is suited to successfully operate a franchise.

To make the right choice for your own situation requires careful thought about your own goals, skills and personality and should be done before searching for and evaluating franchises. So what are the characteristics of people best suited for franchises?

If your appetite for risk is low, a franchise may be your best choice. A franchise lowers the risk because someone else has already pioneered the concept, tested the ideas and found out what works and what doesn’t. If you want to do all of those things with your own idea, then start a business yourself.

Successful franchisees don’t like to reinvent the wheel. They like to work within the proven systems and established procedures of the franchisor. They constantly ask advice of the franchisor support staff and other successful franchisees and follow the advice they get. They understand that they don't know all the answers and are willing to ask for help when they need it. This attitude enables them to achieve success more quickly.

Franchisees need to be prepared to give up some independence of action in exchange for the advantages the franchise offers them. The franchisor will specify how certain things must be done as part of the franchise agreement, but a good franchisor will be able to provide the training and support services needed to position the franchisee for success.

People and team-building skills are usually required of franchisees as are the abilities to plan, organize, administer and direct the work activities of employees. These skills are used to create loyalty, value and trust, and are probably the most important characteristics of all.

Those who have a firm sense of what they want to achieve and the drive and ability to execute a proven business model are far more likely to be successful. They will do whatever it takes to get the job done. This attitude shows in their every action like putting in long hours and handling multiple tasks. No matter what franchise you're interested in, you can be sure it's going to take work to make it successful.

After you can honestly say that you have these characteristics, then begin your franchise search and prepare a business plan.

What does it take to succeed in small business?

Q: I’m trying to decide whether to start my own retail business. I have the experience to successfully operate the business, but what else does it take to succeed?


A: The fact that you are looking for success criteria indicates a realistic approach to entrepreneurship. Many folks jump in with both feet and ask questions later.

Entrepreneurs are generally inspired by at least one of two factors – independence and financial gain. Independence is sought to take risks and escape from other people’s direction. Many seek a haven from corporate bureaucracy. They want to be their own master, have a strong need for achievement and the freedom to make decisions. In short, they want the freedom that they did not have as employees.

The motivation for financial gain is generally considered to be unlimited. Importantly, the gains that are possible in new businesses must be great enough to offset the high degree of risk. Many entrepreneurs are so focused on escape that they ignore the unbalanced relationship between risk and reward and forge ahead in a high risk enterprise without taking the prudent steps to minimize risk, e.g., preparing a good business plan.

A Small Business Administration study identified five important predictors of an entrepreneur’s success. Drive is the most important attribute. New small business owners can expect long hours, high stress and endless problems, as they launch a business. The ability to maintain the necessary stamina should not be confused with the desire to succeed, although they are often interrelated.


Thinking ability encompasses creativity, critical thinking, analytical abilities, and originality. Often questions in this area include: Can I make a reasonable decision? Can I plan my strategy and take responsibility for carrying it out? Do I know when I need help and where to get it? No genius required here, just the ability to think clearly and analyze options.

People skill recognizes the importance of the ability to motivate employees, sell customers, negotiate with suppliers, and convince lenders. Personality plays a big part in success in this area.

Communication skill is the ability to make yourself understood. Part of this skill is the acknowledgement that muddled or abusive communications go unheeded.

Technical ability speaks to the need for entrepreneurs to know their product or service and their market. They must be experts in their field to operate their business with ease.

Finally, speak with a veteran SCORE counselor to get an objective assessment of your probability of success.