This One Factor in Mindset is the Difference Between Wealthy and Struggling Franchise Owners Positive feelings and healthy attitudes influence our habits, determining not just what we do but also how we do it.
By Scott Greenberg •
Key Takeaways
- Wealthy franchisees rely on this formula: C + O + H = R (Circumstances + Operations + Humanity = Results)
- Successful franchisees act on positive and constructive energy while struggling franchisees can get roadblocked by doubt and impatience.
- Wealthy franchisees are distinguished by their exceptional operational skills.
Opinions expressed by Entrepreneur contributors are their own.
This is part 3 / 4 of The Wealthy Franchisee: Section 3: Mastering the Wealthy Franchisee Skill Set series.
Wealthy franchisees run excellent operations. They rank high in sales, control costs, and win awards. When they're not on-site, you'll still see engaged employees creating great customer experiences. Wealthy franchisees demonstrate consistently high performance that can be easily observed.
None of this happens by accident. It's the H factor in this formula: C + O + H = R (Circumstances + Operations + Humanity = Results)
The 'H' Factor
Their mastery of the human elements of their business directly impacts their execution of operations. It's why they're superior. The figure below shows six areas of business operations. Notice the difference in how wealthy franchisees and struggling franchisees approach each one. Clearly, the wealthy franchisee's emotional experience of the business is more pleasant. It's also more lucrative because feelings and attitudes influence our habits, determining not just what we do but also how we do it.
Take marketing as an example. It's mysterious and expensive, and its impact may not be felt for a long time. Two franchisees might decide to run identical campaigns for four weeks. At that point, each must decide if they will continue.
One franchisee concludes after four weeks that the ad campaign was a failure. They spent more on the ads than they saw in sales. Corporate is only telling them to advertise because it's not their money. They have other bills to pay, including rent, payroll, and plenty of other nonoptional expenses. Why waste money on something that doesn't work?
Related: The Most Common Problems Franchisees Face
The other franchisee is patient. They know marketing takes a long time. Many people saw their ad and made a mental note to try the business when they need it. For some, that will be a few months later. Others noticed the ad but won't respond until they've seen it a few more times. Some people will act right away but won't indicate it was the ad that drove them in.
This franchisee isn't certain the ad campaign will build their business, but they are certain that not advertising will allow it to perish. They see other thriving businesses constantly marketing, so logic dictates they should do the same. They have researched the percentage of revenue other successful businesses in their industry spend on marketing and earmarked an equal amount, but they won't be passive about it. They'll track progress and make adjustments. It will take consistency, money, and courage. But like all wealthy franchisees, they're in it for the long haul.
