If you want to know ‘how to run a successful franchise’, then meet Yonas Hagos, an Ethiopian immigrant and U.S. Army veteran who earned a Purple Heart for his courage.
His journey, from a Sudanese refugee camp to becoming a thriving franchise owner, is the kind of inspiring story that makes you believe in the American dream.
His book, ‘From Scrappy to Self-Made‘ is a must-read for all you aspiring entrepreneurs and future franchise moguls out there. Here are some of the key ideas mentioned in the book:
Key Idea No. 1: Start from the Bottom
One of the most common barriers to entry for potential franchise owners is the financial aspect. It’s a valid concern, but the good news is that you don’t need a fortune to start your franchise venture. The author suggests starting small.
Starting from the bottom can be a powerful learning experience. Working entry-level jobs within the industry you’re interested in franchising provides invaluable insights. It allows you to observe customer interactions, develop empathy, and hone your problem-solving skills. These early experiences will form a solid foundation for your entrepreneurial journey.
Starting at a low level within your desired industry is a strategic move to minimize risk. It provides valuable insights into the industry and helps you understand the challenges and opportunities better.
As you gain experience through entry-level jobs, you’ll likely encounter established brands and systematic approaches to business. The author’s experience at fast-food chains like McDonald’s and Burger King demonstrated the power of a well-established brand and a structured way of doing business.
Understanding the strength of a recognized brand and the importance of systems and processes is crucial when considering franchise ownership. These insights can guide your decision-making and set you up for success.
Remember, every successful entrepreneur started somewhere, and with determination, perseverance, and the right knowledge, you can build a thriving franchise business from the ground up.
Key Idea No. 2: Building Connections
As you work your way up within the franchise, you’re not only acquiring practical skills but also building credibility. Potential investors, employees, and customers are more likely to trust and respect your leadership when they see that you’ve put in the hard work and truly understand the inner workings of the business.
In the business world, success often depends on who you know and the guidance you receive. Networking and mentorship are two powerful tools that can significantly accelerate your journey towards franchise success.
Mentors are like seasoned guides who have walked the path before you. They offer invaluable knowledge and experience, helping you navigate the complexities of the franchise world. Their guidance can help you avoid common pitfalls and provide direction when you need it the most.
Moreover, mentors can introduce you to valuable connections within the industry. Networking is about more than just exchanging business cards; it’s about establishing meaningful relationships. These connections can open doors to capital, resources, and potential franchise opportunities that you might not have discovered otherwise.
Remember, networking and mentorship are reciprocal. Just as you seek guidance and assistance from experienced individuals, be proactive in offering your curiosity and enthusiasm in return. Engage in meaningful conversations, ask questions, and demonstrate a genuine interest in learning from those who have already achieved success.
Key Idea No. 3: Embrace Rejection
If you’ve ever dreamt of becoming a successful franchise owner, here’s a dose of reality, rejections and naysayers will be your companions on this thrilling journey. However, don’t let that discourage you. Instead, consider them stepping stones on the path to success.
The author launched a painting and cleaning business called “Win Peace,” but it faced a barrage of rejections from potential customers. It was discouraging, to say the least. But Yonas considered every “no” encountered as a stepping stone toward a crucial “yes.”
Rejection in the world of franchise ownership isn’t a roadblock; it’s a sign of progress. It toughens your resolve, hones your approach, and brings you closer to your franchise goals. It’s not about avoiding rejection; it’s about learning from it and using it to your advantage.
As you embark on your own franchise journey, remember the importance of cultivating a thick skin. Stay unflinchingly focused on your goals, and don’t allow obstacles, in the form of rejections or naysayers, to deter you. It’s your ability to persevere that will set you apart in the competitive world of franchise ownership.
In conclusion, rejections are an integral part of the franchise game. Embrace them, learn from them, and use them as fuel to propel you toward success. Your journey may have its share of setbacks, but each rejection is a valuable lesson in disguise, guiding you towards the ultimate “yes” that will pave the way to your success story.
Key Idea No. 4: Location is Important
In the franchise business, location isn’t just important; it’s a game-changer. Why is that? Because being easily accessible to your customers is half the battle won right there.
Firstly, you want your franchise to be visible to potential customers. If people don’t know you exist, they can’t buy your products or services. Look for locations where passersby can easily spot your signage and storefront.
Secondly, safety is paramount, no matter what type of franchise you’re running. Choose a location that not only offers well-lit parking and entrances but also provides a safe environment for your customers, especially during late-night hours.
In summary, the key takeaway is crystal clear: location is everything in the franchise business. Hunt for places where accessibility is a breeze, think malls, high-traffic areas, and spots where your target audience frequents. Your franchise’s success begins with finding the perfect location, so take your time, do your research, and remember that it can make or break your business.
Key Idea No. 5: Instant Gratification
In the fast-paced world we live in, instant gratification has become a paramount desire for consumers. Whether you’re in the fitness industry or the food business, people want quick results and immediate satisfaction.
For instance, imagine managing a fitness franchise. It quickly becomes evident that achieving significant improvements in one’s health and fitness could take weeks, or even longer. It isn’t just about exercise; dietary changes often feel like a significant sacrifice.
Now, let’s contrast this with the example of a fast-food giant like Dunkin’ Donuts. For less than ten dollars, customers can enjoy a delicious doughnut and a cup of coffee, satisfying their cravings instantly. No need for prolonged gym sessions or strict diets. This concept intrigued Yonas as a potential entrepreneur. Quick, affordable, and satisfying, these were the elements people craved.
Moreover, businesses like Dunkin’ Donuts offer predictability in customer retention. As long as the food remains fresh, the coffee remains tasty, and the service stays quick and efficient, customers are likely to keep coming back. No intense workouts, no psychological coaching, and no dietary sacrifices required; it’s a simple pleasure at a reasonable price.
So, if you are planning to start a franchise, you have to keep in mind whether your business provides instant gratification or if customers will have to wait for weeks or months to get the results they desire. This concept can be your key to success in the competitive world of franchising.
Key Idea No. 6: Expand Your Business
Running a successful franchise is a remarkable achievement, but what happens once you’ve successfully run one franchise? The answer lies in diversifying your franchise portfolio. It is crucial to expand your franchise empire because it brings a myriad of benefits:
- Building a Strong Foundation: Running a single franchise teaches you invaluable skills – from operations to customer engagement, and from team motivation to problem-solving. These skills are not limited to a specific franchise; they serve as the foundation for success in any business venture.
- Catching the Attention of Franchise Executives: Success attracts attention. When your franchise consistently performs well, it grabs the notice of franchise executives. They see your potential and may offer opportunities to expand your reach within their brand.
- Delegation and Management: Expanding from one franchise to multiple outlets requires mastering the art of delegation. You can’t be in two places at once, so you learn to delegate effectively. Managing people becomes even more critical as your franchise empire grows. Your employees are the backbone of your operation, and their effective management is key to success.
- Diversification: Diversifying your franchise portfolio by opening businesses in different locations and targeting various demographics cushions your business during tough times. This diversification makes your franchise more resilient and less susceptible to economic fluctuations, effectively making it recession-proof.
- Accelerated Profits: In capitalism, the more money you make, the more capital you can raise, leading to accelerated profits. The saying “the rich get richer” holds true, and owning multiple franchises allows you to tap into this principle.
- Resilience and Adaptation: Owning multiple franchises provides a safety net. If one store faces challenges, the revenue from the others can sustain the business. Experience teaches you to stay calm and problem-solve effectively, ensuring minimal disruptions.
- Brand Diversification: Expanding your franchise portfolio can also mean adding different brands to your repertoire. This diversification further stabilizes your revenue streams and covers expenses, salaries, and operational costs.
- Empowering Your Team: Empowering your staff is vital when managing multiple franchises. You can’t be present at all locations simultaneously, so training your team to operate consistently is essential. Quick problem-solving and customer satisfaction should be their priorities.
In conclusion, expanding your franchise portfolio is a journey that involves diversification, finding like-minded partners, mastering problem-solving, empowering staff, and capitalizing on financial opportunities. Success in this endeavor lies in the people you have, particularly your managers, who drive the business forward.
Remember, you’re only as good as the people on your team. They understand the business and know how to serve customers, making them the engine that powers your success. So, if you’ve successfully run one franchise, consider diversifying your portfolio – it’s the path to unlocking even greater achievements in the world of franchising.
To conclude, the journey into the world of franchising holds boundless opportunities for those seeking to realize their entrepreneurial dreams and attain financial independence. Yonas Hagos’ book, ‘From Scrappy to Self-Made,’ offers invaluable insights for aspiring entrepreneurs and prospective franchise owners. While some concepts may appear repetitive, the book is a treasure trove of wisdom drawn from the author’s remarkable transformation from a refugee to successful multi-franchise owner.
I hope you enjoyed the summary of “From Scrappy to Self-Made“. For further reading click on this link to get it from Amazon.
Be sure to save the Summary Quest website in your bookmarks, as there’s an abundance of captivating content headed your direction. As I wrap up, I’ll take my leave for now. Until we meet again, remember to care for yourself and continue chasing those aspirations. Farewell for now!
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