Why You Need to Stop Working IN Your Franchise Business

By Team Hireology,
December 1, 2016

There’s a common misconception many aspiring entrepreneurs have when it comes to owning a business. They leave their former jobs or careers believing they will become their own boss, yet this isn’t always the case. Most new business owners end up becoming the one thing they previously despised: their boss.

They start working longer hours, handling multiple positions and focusing on all the little details of the business instead of hiring the proper managers to help run the business. In short, their new business becomes a nightmare instead of that dream they hoped it would become.


In the book ‘E-Myth Revisited‘ by Michael E. Gerber, he outlines why so many small businesses fail every year, which the U.S. Bureau of Labor Statistics reports that only 50% of all new businesses last five years or more, and that only 30% survive 10 years or more. Gerber claims that entrepreneurs fail because they don’t fully understand how to run a business. They build their businesses on their own experience and skills-working in their preferred areas, rather than working on their business-creating a system that runs the company like fine-oiled machine.

Four Crucial Steps to Better Work ON Your Franchise Business System

Gerber also mentions that franchisees and business owners must go to work on their business as if they’re going to replicate it 5,000 times more just like it. This creates the perfect blueprint so they can duplicate it for nearly anyone to run the business and be successful.

Here are the four levels of system components or steps from the ‘E-Myth Revisited’ that franchisees should follow to better work on their business and build a thriving system for their franchise:

1) Build a Foundation: This is how we do it here

Before going into business, it’s essential to roll out a plan that all your employees can follow. You can’t be at your franchise 24/7, so make sure your people can run a tight ship when you’re away. Giving them a plan or process to follow is the first step to ensuring that this can happen.

2) Recruit & Hire: Employ people to use the system

Hiring the right people matters. One bad employee can throw off your entire franchise flow, so it’s important to employ those who believe in your core values, your business’s mission and follow your system of operation. Otherwise you’re likely to face expensive employee turnover and loss of structure at your franchise.

3) Manage the First Two Steps: Discover the flaws

Nothing and no one is perfect; mistakes happen. Make sure you take the time to evaluate what’s working and what’s not working at your franchise. Discovering the weak spots in your business ahead of time or before they become worse can not only save you money, but help vastly improve the way your franchise business operates on a daily basis.

4) Business of Development: Innovate and make sure it works every time

Never be content with the state of your franchise operation. There’s always room for improvement, whether it may be the way your employees interact with customers or handle paperwork on the back end. Working on your business means making it better, day in and day out, so update your franchise where you can to ensure that it continues to run smoothly around the clock.  

These are just a few philosophies that Michael E. Gerber reveals in his book. To get a better understanding of how to fully work on your business as a franchisee or entrepreneur, read Gerber’s book.

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