Franchising needs hands-on management

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In franchising, it has considered important that you not only work on your business but in your business also, by being involved in the business as much as possible in building the store or brand - from the inside and out.

Owner management means physically performing the core functions that the business is built upon. From taking orders to training and paying staff, this way of working calls for the owner to be hands-on in all aspects of its internal workings. Working on the business comes down to ensuring the right systems and strategies are in place and the right people are employed to complete the needed tasks to ensure success.

Balance of both beneficial

Why you should work in your business: Within the franchising model it has been evident in the past that franchise stores operate better when the franchisee is directly involved and hands-on in the business. Hands-on management loosely refers to an owner who offers a pro-active presence in the store and continually encourages and motivates the team members to promote problem-free, productive operations.

Unfortunately, many business owners - especially those in franchising - have been blinded by the misconception that they can simply hand over the reins of a store to a manager to oversee and run. However, even if owners have the best managerial team, their business will never achieve optimal success if they are not playing an active role. In franchising, it is imperative to keep a close eye on the pulse of progress so that all is kept on the right track, and issues are identified and addressed sooner rather than later. Any deviations, whether it be poor stock management or improper staff training can have a devastating effect on the bottom line.

When faced with this misconception, it is important for the owner to remember that no other staff member will ever really be as committed to and passionate about the business as he or she is. No one will grasp the weight of the investment made better than he or she will or be as concerned over turnover.

Why you should work on your business: Aside from taking an active stance on business, other key owner tasks need to be implemented. These include planning with the team, reviewing progress and taking the needed corrective steps to restore any imbalances.

At the end of the day, active management is nothing when the owner is not focusing on the future by working on the store. Franchisees, even though they are in the safe confines of a structured franchise, still need to develop a vision for the company, have key values that determine how the business is run and have the proper 'course correcting' tools in place. If owners are too focused on being active in the business, the chances of them losing sight of what lies outside of it, which can only really be identified when working on the business, is a great possibility that could lead to their own demise.

The secret therefore does not lie in how active or reactive you are in your company, but in how you strike a balance between these to the benefit of your business at present and in the future.