George Cohon, renowned businessman and founder of...
Many Canadian franchisees try to do it all, from handing customers to managing employees and ordering inventory. However, as a franchisee, this may or may not be in your best interest. In some cases, it's better to hire a manager to handle some of the location's daily activities.
The right answers here will depend entirely on what type of franchise owner you decide you want to be.
The two types of franchise business owner
Business owners are unique, of course, but most will fall under one of two umbrellas: those who want to work at the franchise every day and handle all aspects and those who want to distance themselves.
To help decide which option is right for you, consider the details of each choice.
The hands-on owner
Whether you really want to be involved in each component of your franchise or you can't afford to hire a manager right now, being at your business each day will help you stay connected with what's going on. Employees tend to be on their best behavior when they know the boss can show up at any time. You will be able to catch sales and traffic trends early and make your decisions based on those patterns.
The drawback here is the amount of time you may spend in the business--if you joined a franchise for more free time than you had at your day job, this can be a problem--and the financial strain if you're relying solely on the franchise for income. Most businesses are not profitable in their initial years, and if you're spending all of your time on your franchise, you won't be able to generate another source of income.
The passive owner
Some franchisees prefer to stay out of the way, having a manager run daily operations. If you view your franchise as a money-making avenue and don't want to be involved, this is the way to go.
Of course, the downside here is that you won't be immediately aware of what is going on in your franchise. You may not hear about issues until they have become too big for your manager to handle. It's also more difficult to make strategic decisions when you're not tapped into the pulse of your business on a daily basis.
Of course, you can go for a balance between these two styles. You can, for example, hire a manager but still check in often so you know what's going on. Ultimately, the right choice for you will depend on what your needs and preferences are.