Franchise company culture plays a large role in a company’s success. A positive company culture will encourage employees to work harder and stay with your company longer. Employees will also look for ways to help the business become more efficient and more profitable. When your people are happy, they pass the savings onto you. Here are some tips on how to create a positive company culture.
Here’s How to Create a Positive Company Culture
1. Prioritize Health
The world has recently come out of a pandemic, and health is more important to employees than ever. If you want to create a positive company culture, you need to make employees feel safe and healthy. Do this by providing adequate health insurance for full-time employees. People should get their insurance within 3 to 6 months after their start date. You should also encourage employees to work from home when they aren’t feeling well. Finally, you should make sure employees have plenty of physical space between each other. You can also install hand sanitizer stations and reminders on how to stay healthy. Healthy employees show up to work more and work harder.
2. Use Standardized Metrics to Measure Performance
Employees need to feel that there are fair metrics in place to judge their progress at work. You can gauge things based on productivity, sales, or a number of other metrics. Make them clear to everyone. You should also make it clear how you calculate the metrics so that employees understand what they need to do to help you gather accurate data. This helps you learn what your employees are doing every day and how much they can accomplish. You can use the data to adjust the metrics as you see fit.
3. Get to Know Employees
You need to make a point to get to know your employees on a personal basis. You can do this with casual meetings in both a group and one-on-one setting. You can have other meetings to talk about performance. These meetings should involve learning what motivates your employees and their thoughts about working for you. If meetings aren’t your style, make an effort to get out into the workspace to answer questions and help when the real work is going on. You will be able to show your expertise while getting to watch your employees in action.
4. Request Feedback
Running a company can mean that you focus on the big-picture ideas as opposed to the day-to-day operations of your organization. You may not be able to properly see the things that could use improvement. Who better to suggest improvements than the people who work there every day? Provide an anonymous suggestion box or anonymous surveys to allow people to express their thoughts. You can also establish an open-door policy that gives people the chance to voice any concerns to you in person when a certain problem comes up.
5. Encourage Diversity
People have struggled and worked for years to become equal to other people simply due to their skin tone, country of origin, gender, sexuality, or age. As the leader of your organization, you need to go out of your way to create an environment of inclusion. Start by hiring a professional who can consult on ways to increase inclusion in your business. If you do notice any form of discrimination, it needs to be taken seriously. Investigate all complaints immediately. Establish clear consequences for anyone who hinders your efforts of diversity and harmony.
6. Recognize Hard Work
Many employees don’t feel adequately appreciated in their current position. When you see an employee doing a good job, you should make a point to celebrate their efforts. Acknowledge them in a public way. You can also give them some sort of monetary reward for going above and beyond. Hopefully, other employees will be encouraged to work hard, too.
7. Create Clear Core Values
When you clarify what your company stands for, these values can guide you in the right direction during your daily dilemmas. Make sure that all employees in your company know your core values, too. The idea is to get them to go through the workday with those same values instilled in them. Write your core values down, go over them during orientation, and reiterate them once or twice a year while also placing reminders around the workspace, whether it’s an office or a restaurant.
8. Promote From Within
Many employees don’t appreciate being at a job for years only to watch someone else come in at a higher position who doesn’t know the ins and outs of the company. You should only hire people that you can see promoting down the line at some point. Instead of hiring C-level employees, you can promote within and hire entry-level employees to train. Always keep your eyes open for who is truly making an effort at the company.
9. Set Standards
You want your employees to like you, but you also want your employees to behave in an appropriate manner. Establish standards and hold people to them. If you let employees get away with anything, they will do just about anything. Some common expectations include regular attendance, proper customer service, and appropriate behavior in the office. Establish consequences when an employee does not meet your expectations, and stick to them.
10. Have Fun
Just because you are at work does not mean you can’t have any fun. It’s okay to joke around with employees and let employees joke and laugh and have fun. Encourage social outings after work and allow people to be silly. For some workplace culture examples, you can even provide games in the break room or ice-cream socials once a month. These little extras can make an employee want to stay.
Hire Applicants Who Will Contribute to a Positive Environment
One of the best ways to create and maintain a positive company culture is to hire people who will help make it happen. Luckily, Sprockets empowers you to do precisely that. Our sophisticated solution to hiring combines natural language with artificial intelligence and over 80 years of psychological research to predict which applicants will succeed at your company and mesh well with your team. It’s not magic — it’s logic.
Schedule a demo today to see how the Sprockets solution works!
Currently, a lot of people are venturing into franchise opportunities. One of the many benefits of setting up a franchise location is that you will be riding on an idea that has already proven successful. However, just like any other business, setting up a new franchise location can also come with the same challenges facing any other business startup.
For instance, you’ll need a solid business plan. Building a good business plan for a new franchise location is essential. It helps you think through the obstacles you might face, strategies for overcoming them, and your intended investment’s overall sustainability. A good business plan is also essential if you need financing for your business. Most lenders and investors will demand to see your business plan before considering financing your business.
Building a Business Plan for Your Franchise Location
While some franchisors will help build your business plan or simply provide you with one, that is not always the case. Don’t worry, though. Below is an outline of a franchisee business plan example outlining the various sections included in a business plan for a new franchise location.
1. The Executive Summary
This portion of your franchise business plan should give a clear description of your business’ goals and its purpose in the short and long-term. This section includes basic information such as your business’ name, details of the founder, and location. It also consists of the mission statement, a list of products and services, and the target market. Please ensure you also state your credentials and experience in the field and an overview of your business success factors.
2. Business Overview
In this section of your business plan for a new franchise location, you must provide an overview of your business’ main aspects. For example, you might need to explain why your new startup is better and unique from the existing establishments.
It should be as forthright as possible so that anyone reading it will get a clear understanding of the scope of your business. This section highlights your business’ legal structure, the franchisor’s company history and success rate, and a complete list of all the products and services, inclusive of their prices.
3. Industry Review
Understanding the industry you want to venture into as a franchise is critical to your success. This section of the business plan can be divided into two parts: the industry’s general overview and the position your franchise intends to hold or fill in the overall industry. Consider current trends, the industry’s growth rate, major players, and national revenue.
4. Management Summary
The management summary section of the business plan should include a list of members responsible for running the business. These are the employees that will be mainly responsible for the day-to-day operations of your franchise location. Be sure to put as much of the members’ background information as possible. You can include past experiences, professional qualifications, past successes in the field, and any other information pertinent to their position.
5. Consumer Analysis
The consumer analysis section of the business plan focuses on the target audience. In this segment, you must start by identifying who your potential customers are, express a clear understanding of the customers’ needs, and show how your products or services will meet those needs.
You need to be very specific when writing this section and exhibit a clear understanding of who your intended customers will be. For example, it would be too vague to say that your company is targeting middle-income earners. Be as in-depth and precise as possible. You might need to specify the exact range of income, age, and location of the customer, among other traits.
6. The Premises
Every business needs to operate from somewhere. You must agree with the franchisor on your business’ most appropriate location before writing this section. Some of the factors determining your choice of premises may include the location, expansion projections, cost, and planning consent from the property owner.
7. Sales and Marketing
In a franchise, strategies for sales and marketing are typically laid out by the franchisor. When writing this section, you will need to research their sales and marketing strategies, advertising, and any other kind of support they may offer you. You can also confirm with your franchisor if it’s alright for you to play a role in local advertising and marketing.
The following are areas you might want to consider when writing your business’ sales and marketing plan: marketing channels used by your franchisor, strategies for different business seasons, an overview of the sales process, and customer retention strategies.
8. Financial Projections
The financial projection plan is one of the most crucial business components; it is more of your business’ financial forecast and acts as a roadmap. Potential investors and lenders will look at this section more to determine their interest in having a stake in your investment. Most financial projection write-ups are appealing on paper. However, it can be of no value if actual returns do not justify it once the business starts running.
Avoid writing this section with the sole intention of impressing investors and lenders. Make sure you do thorough research to establish the real potential of the business you are venturing into to avoid losing money.
It is essential to prepare this section even if your venture is funded from your savings. This section describes the financial needs for starting up the business and how you expect to fund it. It is one of the last items on the list in your business plan. This segment is where you make your case to investors and potential lenders if you are trying to get funding from them.
Have a Hiring Plan
If you are looking to hire employees and have difficulties identifying the right applicants, please feel free to contact us at Sprockets to learn about our AI-powered Applicant Matching System. We pride ourselves on helping companies hire applicants that are the precise fit for their needs, ultimately reducing costly employee turnover. Our sophisticated solution ensures that you hire people who will collaborate well with your other team members and stay long-term to see your company grow — and contribute to that growth.
Are you ready to launch a new franchise location? Between now and then, you must overcome many obstacles. Luckily, in this day and age, the answers are easier to find than ever. By checking out the following tips, you’ll have a leg up on the competition. That way, finding success with your franchise business will be easier than ever.
7 of the Best Tips for New Franchisees
Let’s look at a few of the most common traits of successful franchise owners. Of course, everyone’s situation will be different. Nevertheless, by comparing notes, you’ll notice there are some core commonalities. When you are ready to start a new endeavor, doing the research is more than worthwhile. By putting in the time, you’ll reduce the odds against you. Then, success is just a matter of commitment. At that point, it might as well be guaranteed.
1. Ensure You Have the Starting Capital
Without the money, you can’t launch anything. Therefore, ensure you have the starting capital. Otherwise, your time would be spent better on other ventures. For example, suppose you have limited funding. If that is the case, we suggest you pursue finance partners rather than customers.
2. Choose the Optimal Location
Even though your business has a well-known brand name under a franchise, that doesn’t mean it can succeed anywhere. Any experienced business owner knows that location is a significant factor in success. In certain areas, poorly ran enterprises might prosper. However, in other locations, even the most efficient endeavors might fail. By researching different locations, you can find one that fits you best.
3. Network With Other Successful Franchisees
Who said that you could not learn from other people? Of course, not everyone can give you good advice. However, by speaking with successful franchisees, you can find out what they have learned. Over their career, they’ve made many mistakes. Since you can ask them what they learned, you won’t have to go down the same road they did. That way, you can skip over some of the bumpier sections of the journey.
4. Continuously Seek New Information
You can compare yourself to other people all day long. However, you would get better results if you were to look at people who were successful. Generally speaking, they are all fast learners. Because they can pick up on things quickly, they can also adapt rapidly. In the business world, that is essential. By adapting to new circumstances, their companies thrive while others fail. If you’d like to follow in their footsteps, then it would be best if you were to emulate that trait.
5. Grow Your Business
Both you and your business should always be growing. Every year, set new goals. That way, you can have something to use while you measure your progress. By doing so, you’ll have a reason to stay motivated throughout the year. Unfortunately, many entrepreneurs fall off track after they get started. However, a small bump in the road doesn’t mean the entire journey must be derailed. Instead, use this as an opportunity to find out what went wrong and improve. Then, get back at it. Otherwise, you’ll have to learn the old adage: Failure is only permanent when you quit trying.
6. Maintain a Work-Life Balance
Besides your new business, you must also focus your time at home. At its core, your home life helps motivate you in the morning. When you wake up, rushing to work on that new project might not be exciting. However, if you have a balanced life, then working won’t be so aversive. Instead, you will be ready to seize the day each morning. By living a balanced lifestyle, your efforts will be rewarded when you focus on work.
7. Build a Strong Team of Employees
While you are central to your company’s success, other people make your business run. As you are building your crew, evaluate each individual for their talents. You should only choose applicants who will thrive in the workplace and mesh well with the rest of your team members. The stronger you can make your team, the more successful you can make your business.
Luckily, there’s a convenient tool that makes hiring the ideal applicants a breeze. It’s Sprockets, an AI-powered solution that quickly and effectively creates a “fit score” for your applicants, empowering you to see who will drive success and stay long-term. It’s not magic — it’s logic.
Schedule your demo today to learn all about how Sprockets helps you hire the right applicants and reduce costly turnover!
If you think the business world is hectic, overwhelming, and confusing, you are not entirely wrong. It is probably worse when you are inexperienced about your venture. The franchise venture is rapidly becoming more popular, and it is easy to see why.
Becoming a new franchisee eliminates the costly expenses that come with starting your own business from scratch. For example, you will not need to generate a business model or patent it for trademarks. Other perks include advertising and product promotion, staff training, and support services.
Learn How to Become a New Franchisee
But how much do you know about becoming a new franchisee? Restaurants are quite popular in the franchise industry, but you can also venture into other industries. You could opt into real estate, the education sector, health and fitness, pet care, just to name a few.
Is a Franchise Enterprise Right for Me?
The purpose of getting into entrepreneurship is different for each person, and so is the capital investment. If you are not so excited about taking business risks, franchises offer a decent safety net. However, there are several factors at play, and success is not a guarantee.
Here are some things you should consider before you start a franchise process:
- Take time and weigh the pros and cons of buying a franchise location. Does it serve your purposes in the way you intended? What are the cons to such a goal, and how will it affect your finances?
- The markets are a decent guide on where to put your money, but it is highly advisable to settle into something that matches your skills, personality, and goals. Money is a huge motivator, but interest and skills are what get you through the tough times.
- In addition, think about the future. Is this what you want to be doing ten years from now?
Understanding the Franchise Process
When all is said, how do you get the job done? What is the process of becoming a new franchisee? What are the new franchisee requirements?
We will break down the process into seven simple steps:
Step 1: Research Franchise Concepts
As we had mentioned earlier, there are many more concepts you can look into that are not restaurants. The International Franchise Association has over a thousand registered franchise businesses you can look into. Alternatively, you can look up other opportunities at FranchisesForSale.com. Talking to a professional will help clear the air in terms of what you want.
This research is instrumental in finding business opportunities that fit your budget, geographical specifications, and skills. There are some websites that will help you narrow down your options based on these factors and other preferences. Alternatively, you can talk to a professional about it.
Step 2: Send an Application/Request for Consideration
Have you found a franchise concept that sets your soul on fire? Do you have several options you are seriously considering? Submit your request for information. You will hear back from the company within a week or so, either via phone or email. They will also link you to a representative.
Step 3: Consider Legal Obligations
Now you are getting more invested with your company of interest, so it is time to take it to the next level. At this stage, you are learning in-depth information about every aspect of the industry. This will include the company, the business model, and the roles of both the franchisee and the franchisor. This information is delivered in the Franchise Disclosure Document-FDD. Go through the document with your lawyer and accountant.
This is a legal requirement by the Federal Trade Commission, and it serves to elaborate on the relationship between you and the franchisor, including required fees and commitments. The FDD can be pretty detailed, but ensure you read through it all. Start with what interests you. The document will also guide you on your obligations, and it dictates what the company will and will not offer.
Step 4: Training and Support
This might be the best thing about the franchise concept — all the heavy lifting is someone else’s obligation. The franchisor has researched the market, developed the concept, and created the product and service. In addition, the franchisor gets to share their trading strategies, training, and marketing programs with you. Of course, this often comes at a fee.
At this stage, your franchisor should outline in detail the support you should expect in terms of training, marketing, and operations. Depending on the company you are working with, you might have to travel for training programs while others will come to you instead. Also, some companies only offer online support to their franchisees.
The advertising and marketing strategies will vary significantly between franchisors, and some will offer online or phone support only. At this stage, you decide how much support you’re comfortable with and whether you can survive with what’s on offer.
Step 5: Review of the Franchise Disclosure
If everything is going smoothly, then it’s time to take it to the next level. You will have a serious conversation with the representative to review the FDD and territory issues.
Review every section of the document and make sure to ask any questions. A franchise will cost you time and money, so don’t be hasty. To be on the safe side, have an accountant look through the financial statements to estimate the accuracy of projected returns.
Another important person you should see at this stage is a franchise lawyer. As a legally binding document, you want to ensure that your rights as an individual and business person are not tampered with or diminished. In addition, a lawyer will be able to identify any unfavorable clauses that might hurt you in the long run.
Step 6: Due Diligence
At this point, you understand the industry like the back of your hand. However, restrain from making any rushed decisions. Talk to different people at a corporate level and the other franchisees. Ask about the company and whether their expectations have panned out. Ask about any regrets or wrong decisions they think they have made. If your franchisor is hesitant to share a complete list of their franchisees, then perhaps it is better to take your business elsewhere.
Step 7: Finalize Plans
If everything has gone according to plan, then congratulations! You are at the final step of the franchise process. At this stage, you have completed the evaluation, and you are ready to sign the Franchise Agreement. Ensure your finances are in order, including management service fees and cuts to the marketing and advertising funds. Do you have enough cash to sustain your franchise until you start making profits? Also, you get to meet with executives and heads of departments who will be your close associates as you start on your new franchise business.
As an entrepreneur, it is crucial to create a business plan for your franchise. Even though it is not a mandatory accessory, it is an important tool that helps to assess your business. How is the progress of your franchise in comparison to your goals? Your accountant or franchisor could help you develop one, but ensure you stay in the loop and are aware of the figures. Review your business plans regularly.
Jumpstart Your Business With Sprockets
Are you ready to achieve success as a new franchisee? We’re ready to help you make it happen! The Sprockets platform empowers you to hire employees that are the precise fit for your needs. It combines natural language and artificial intelligence to determine, with absolute accuracy, the right new hire for your team (in a matter of minutes!)
Contact us for more information today or schedule a brief demo to see Sprockets in action!
Fostering a sense of team unity is an excellent way to make your restaurant the best it can be. Facilitating team activities, goals and a common vision are great ways to encourage employee engagement. With a strong team, you’ll see better productivity, retention, and profits. Encouraging team unity doesn’t simply mean playing a few ice breaker games at pre-shift meetings. It is a deep-rooted, multi-faceted initiative that should stem from a good deal of thought and planning that has a real impact on business. In fact, 86% of employees and executives state that workplace failures are a direct result of a lack of collaboration or ineffective communication. To strengthen your team, we’ve compiled four team building tips for engaging restaurant staff members and reducing employee turnover.
Encourage Informal Social Gatherings
If team-building is established as extra work, your staff members won’t be as apt to join in. But, promoting informal social gatherings on a day the restaurant closes early is a great way to encourage team building. When staff members can gather outside of pressure-filled shifts, they gain quality time to get to know each other. Gatherings could include a shared meal at your restaurant, or an outing to see how a rival restaurant operates and discuss what they see as working or not working.
Encourage Employee Contribution
Every single person has been in a work situation or meeting when they have had the urge to voice an opinion or idea but chose to keep it to themselves for a variety of reasons. This can often lead team members to feel that their input and opinion isn’t valued.
A great way to foster a team culture is to encourage employees of all levels to contribute. A great way to start this process is to leave a specific time allotment for employee contribution during meetings or project discussions. Encourage leadership to actively listen and encourage the sharing of ideas. This doesn’t mean that everything will be smooth sailing when it comes to team contribution. However, the simple act of encouraging employees to speak up builds up a strong company culture and helps people feel that they are an important part of a team.
Establish Clear, Open Communication Lines
The saying “communication is key” is especially important when one of your major goals is building a sense of team unity. Establishing clear, open lines of communication is the first step to ensuring the success of a team-building endeavor. Individual employees should have a common communication line, such as a team leader or senior team member, that they can go to with progress reports or questions. Employees should never be discouraged from communicating. However, it is also important to establish up-front what type of communication will be beneficial to work toward a common objective or goal. For example, complaining or going off-topic will only develop unnecessary traffic when it comes to communication.
Did your restaurant recently meet its monthly sales goal? Identify staff from every aspect of the restaurant that had a positive impact on meeting that goal. That may include a server that went above and beyond, a bartender who stepped up and took open shifts, or a shift leader who got great reviews from a customer. Employees that receive recognition for their accomplishments will be encouraged to continue their work endeavors. While building your plan to recognize key contributors, it’s also important to outline how you can recognize and reward the accomplishments of the restaurant staff as a whole that contributed. This may include an extra bonus or a free meal voucher for them and a guest.
As you grow and engage restaurant staff members, check out the Sprockets platform. Our Applicant Matching System is designed to assist restaurant owners and managers in hiring the employees by matching applicants against your best people.
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