The launch of a new franchise is often full of lofty dreams and rose-colored notions of success, recognition, and financial freedom.
I mean, who doesn’t want to be their own boss and set their own hours? Does anyone else have visions of working from some tropical paradise (complete with an umbrella-crowned, pastel-colored drink in hand?)
Yeah, me too.
That beach may very well be in your future, but the reality is that the first 100 days of your new franchise’s life are critical to building the foundation of your business.
Why?
Because, according to Entrepreneur, 20% of businesses fail within the first year. You don’t want to be one of them (and we don’t want you to be one either!)
Because it’s a whole lot easier to start on the right foot than to try to dig yourself out of a hole.
And because bragging rights aren’t nearly as fun if you don’t, you know, actually succeed.
So… we bring you our guide to a productive first 100 days, including our best hole-avoidance tips!
Research ALL the things new franchise
Taking a (seriously) deep dive into comprehensive market analysis.
Dissecting competitors and shmoozing potential partners.
Learning every need, preference, and mood your target customer has even thought about having…
That stuff is not nearly as fun as getting new business cards that say “owner” on them, but knowing your market and your local business landscape is critical to your success.
Go beyond basic demographics:
- What makes your business uniquely attractive to the character of your local market?
- What product holes can you fill that your competitors have ignored? Pay attention to what the local market wishes they had, and make it your goal to provide that solution.
- Where are the other guys falling down and leaving you opportunities to stand out? Knowing what frustrates the other guy’s customers can help you woo them into becoming your customers instead.
- What are some innovative ways you can differentiate yourself in a crowded market? A real estate business that adds an in-house mortgage brokerage could discover that that was exactly the tweak they needed to stand out from the rest of the real estate competition.
One unfortunate truth of entrepreneurship is that it takes money, usually in fat stacks, to get a business off the ground.
Do you know what financing options are available to you? Are you a traditionalist, or are you willing to get a little more creative to land the financing you need?
What about cash flow? Do you have reserves you can fall back on when you hit a rough patch, or even enough capital to last until you figure out how your wings work?
Chances are your highest expenses will all come in those first 100 days, so that is one of the most critical times for generating some serious startup cash.
As a franchise, you are in a unique position to take advantage of a wealth (heh heh) of financial resources and experience.
Franchisors have been around the block a few times, and chances are solid that they’ve either seen or made just about every mistake in the book. Don’t let their sacrifices be in vain.
Have a plan. A real one.
As much as you might want to avoid it, the dirty work of setting a vision for the business and developing both short- and long-term goals lies solidly in your job description as the founder.
Lofty ideals sometimes feel like a skippable part of the process, especially when the items on your to-do list are rapidly creeping into the hundreds.
However, taking the time to think through realistic and detailed touchpoints will make sure you can stay focused. You don’t have time and money to waste on scope creep and low-ROI tangents. Don’t get sidetracked.
Operational challenges are another big area where new businesses can easily sink or swim in the first 100 days. Do you have your supply chain set, with backups? How about employee training? CRM systems?
Operational stuff can be much more of a time and money sink than many starry-eyed new business owners expect or plan for.
But as a franchise, remember that you have the power of your franchisor at your fingertips.
For example, if you are a real estate broker using Motto Mortgage to diversify into the mortgage market, Motto can be a huge operational ally.
They offer comprehensive support for the training, operations, and tech that can get you from zero to operational in a fraction of the time and cost.
And since this start-up period is a time when your money is probably flying out the door way faster than it is walking in, operational basics like good cash flow management are pretty danged critical. The faster you can flip the switch to positive cash flow, the faster you’ll be covering those startup and ongoing expenses instead of sinking further into the quicksand of debt.
If validating your business model and refining your projections and expectations aren’t already on your to-do list for these first few months, they should be. This is the time to make any adjustments you need before you build up too much momentum.
The smaller you are, the more nimble you are. Use that to your advantage.
Shake hands and kiss babies
Don’t underestimate the power of actively engaging with your community.
A survey conducted by ZypMedia found that “an impressive 84% of people want to shop locally because they know that spending their money with the small businesses within their community goes a long way to enhancing the community for everyone.”
FranchiseWire goes on to say that “every single customer you win over through strong community partnerships and support could yield up to four times the sales of that one customer.”
Four times the sales. Let that sink in for a minute.
All because you took the time to show people that you care about their needs, their wants, and their lives. And maybe volunteered for the dunk tank.
Effective and active community engagement can also help you create brand ambassadors – folks who love what you do and can set local tongues wagging faster than tails in a dog park.
Word-of-mouth marketing can be a business growth gold mine.
Remember…
You only have one chance to make a first impression, both in your market and with your customers. Great first impressions can be huge boosters, and negative ones can haunt you like an 80s mullet.
Every day can be bring-your-dog-to-work day!
As odd as it may sound, the right culture can be a huge contributor to your future business. The behaviors, values, and norms set by you, the founder, and your early employees during this time can become deeply ingrained.
This is your chance to build the kind of workplace you want to work in. Positive choices become positive practices, and happy employees can lead to higher productivity, better retention, and a healthy work environment.
And possibly some very happy dogs too.
There is only one of you
The culture you establish can also help you attract the kind of people you want to work with.
If you are a big believer in pedal-to-the-metal marathon brainstorming days followed by a good old-fashioned paintball war, you’re going to attract folks who love that vibe and are willing to work hard and play hard with you.
If you are more of a 9-5 (and I mean on the dot) kind of person, there are people out there eagerly waiting for you too.
Sure you want people who have the skills and drive to move your business forward. But you also want to look for values that will embrace and strengthen the company culture you are trying to establish.
Be especially careful when choosing your leadership team. They are the ones who are going to get you through the growing pains of the startup phase, keep everyone motivated, and make sure your team stays in the progress lane.
Know what kind of people you want? Great! Here are some ideas the crew at Motto put together to help you find (and hire) exactly the team you want.
Besides, burnout is REAL, folks. Especially among new business owners, and after months of 14-hour days.
Your team and your business need you.
Make sure you hire people you trust enough that you can take care of yourself too. You need to keep enough in the tank to be in it for the long haul.
I highly recommend hiring people who not only rock their jobs but also make you laugh.
The power of laughter when the going gets tough is (ahem) no joke.
Love on those customers!
You only have one chance to make a first impression, and the vast majority of those impressions will be made in your first 100 days.
On LinkedIn, Peter Marik emphasizes that “a strong first impression can foster trust and credibility with the potential client. If they see you as professional, knowledgeable, and genuinely interested in their needs, they are more likely to believe in the value your business can bring to them.”
Your first customers, those “early adopters” of your products or services, can turn into some of your most vocal advocates if they walk out your doors feeling great about their experience.
They can also provide you with valuable feedback on how you might need to tweak your offerings to make your market even happier.
Great experiences can build trust and loyalty – the foundations of a happy and sustainable customer base. A solid base also sets you up for sustained growth and profitability.
Awesome impressions aren’t just for your customers. Leaving competitors and partners alike with positive impressions of your business can help position you as a force to be reckoned with, and/or the popular kid at the partnership table.
Don’t forget the fine print
Regulations and legal compliance: words that can strike fear in the heart of even the most well-seasoned entrepreneur.
They can also eat up weeks of your time for breakfast.
BUT…
This is another area where you have a distinct advantage as a franchisee.
No matter how complex these issues can be, chances are your franchisor has a toolbox full of guidance, processes, checklists…
Whatever you might need to help clear those hurdles and get back to the business of… well… your business.
It’s especially crucial to get this stuff right in highly regulated industries like mortgage finance.
Missteps can have pretty drastic consequences. Hefty fines, penalties, and having to divert resources during such a critical period could bring all your forward momentum to a screeching halt.
All while tanking your reputation before you can even get going.
Ugh.
The first 100 days of your new franchise are not only about surviving, they are about establishing a solid foundation for your future.
Savvy decisions and planning, a willingness to evaluate, tweak, and adjust as needed, and careful attention to critical facets of setting up your business may all mean late nights, long hours, and some serious hair loss in the first 100 days.
However, taking on the tough stuff now can also help smooth the road for everything that comes after.
And, just maybe…
There is indeed a sandy beach somewhere in your future.
Complete with a neon-bright paper umbrella in a foofy drink with your name on it.
Published on May 7, 2024
