Congratulations! Your business is officially open, and the excitement of day one has come and gone.
Now the real work begins. In your first year, you're laying the groundwork for future growth and stability.
This period is about learning, adapting, and growing – both personally and professionally.
Here’s what to expect in your first year and how you can navigate this critical time.
Managing the Learning Curve
No matter how much preparation you’ve done, the reality of running a business can be different from what you expected.
There will be a steep learning curve, especially in the first few months of having your business open. You’ll be learning how to balance the daily operations of your franchise with the responsibilities of leadership, customer service, and financial management.
Expect to make mistakes – this is normal. The key is to adapt quickly. Evaluate what’s working and what isn’t. Don’t hesitate to tweak your approach based on early feedback, whether it’s from customers, employees, or your franchisor.
Stay flexible. The more quickly you adapt, the stronger your business will become.
Building Your Customer Base
In the first year, customer acquisition is one of your top priorities. Your pre-launch marketing efforts may have brought in some early customers, but now it’s time to focus on building a loyal customer base.
Focus on creating great customer experiences. Train your staff to provide consistent, high-quality service. Encourage customers to leave reviews online and refer others to your business. Word-of-mouth and online reviews are incredibly powerful for new businesses.
It's essential to exceed your customers' expectations so that they coming back and tell their friends about your business.
Marketing
Marketing your new franchise is key to driving early foot traffic and interest. Most franchisors provide marketing templates and strategies, but the responsibility of executing those plans falls on you.
Think about both digital and physical marketing. Most local franchise businesses can get some good results from social media ads, local flyers, and partnerships with community groups.
Continue leveraging the tools your franchisor provides. Keep your marketing efforts steady and targeted. Don’t make the mistake of reducing your marketing budget too early. This is the time to build momentum.
In general, find what works for other franchisees. Try a couple of those strategies on your own franchise. If they're working, scale them up. Then try adding a couple more strategies.
My aim in any business is to have three good marketing strategies working for me at all times.
Stay on Top of Your Numbers
The first year can be financially challenging. Monitor your expenses closely, and ensure you’re sticking to your budget. This is the time to establish regular financial reporting practices, whether you’re doing it yourself or working with an accountant.
Break-even points may take longer than you expect. While many franchises are designed for quick returns, every market is different. Don’t panic if your projections are off by a few months. The important thing is to stay focused on your long-term goals and make adjustments as needed.
Be patient and strategic.
Retaining Your Team
Hiring your initial team is just the first step. Now you have the challenge of managing and retaining your team.
The first year is where you’ll build your company culture and leadership style. To reduce turnover, invest in training and regular feedback sessions. These will make your team feel engaged and valued.
Employees who understand your vision and feel supported are more likely to stick around and contribute to your business’s success.
Pay particular attention to your star players, no matter what level they're at in your company. Give them promotions and opportunities to keep growing your business. You never know how far they will take you.
Lean on Your Franchisor’s Support
Whether it’s through regular check-ins, support teams, or access to additional training, don’t hesitate to ask your franchisor for help when needed.
Your franchisor may also provide performance benchmarks, so you can see how your franchise stacks up against others in the system. When it's available, this is one of my favorite features! You can use this data to identify areas where you’re excelling and where you need to improve.
Interpreting Customer Feedback
Your customers are your best source of feedback. Pay close attention to their responses – whether in person, online, or through reviews. Your customers will tell you what’s working and what isn’t.
Positive feedback is great, but don’t ignore criticism. Often, constructive criticism gives you the insight you need to fine-tune your operations.
Use customer feedback to make small adjustments to your product, service, or operations. In your first year, focus on refining your processes to ensure you’re delivering the best possible customer experience.
Just be careful not to overreact to every piece of feedback. Stay true to your business model and franchise guidelines, and adapt where necessary.
Networking and Local Partnerships
In your first year, building relationships within your community can have long-lasting effects.
You can join local business groups, attend events, and network with other business owners.
Your effort here can drive traffic to your business. It will also establish your presence as a key player in your local market.
Consider forming partnerships with complementary businesses or local influencers to cross-promote. This can give your business extra visibility while building goodwill in your community.
Handling the Stress of Year One
Your first year is stressful! You’ll be wearing multiple hats, dealing with unexpected challenges, and making decisions that affect the future of your business. It’s easy to burn out if you don’t manage stress.
Prioritize your time and delegate tasks whenever possible. Lean on your support network – whether it’s your franchisor, family, or a mentor. Remember, you don’t have to do everything yourself. Taking time to recharge is just as important as working hard.
Don’t neglect your personal well-being. Stress management is key to your long-term success.
Planning for Year Two
As you approach the end of your first year, you’ll begin to see the fruits of your labor.
But the work doesn’t stop here. Now is the time to start planning for year two!
Look back on the lessons you’ve learned. Think about where you want to take your business next.
Is it time to expand? Do you need to hire more staff? Are there operational changes that could improve efficiency?
Set clear goals for year two and create an action plan to achieve them. With the experience of your first year behind you, you’ll be in a much stronger position to grow and scale your business.
Conclusion
Your first year running your franchise is your time to build your customer base, streamline operations, and establish your leadership style.
Stay focused, use the resources available to you, and continue refining your business. By the end of year one, you’ll have a solid foundation for growth and success in the years to come.
If you need additional guidance throughout the year, remember to reach out to your franchisor or other franchisees in your network. Support is always available, and the lessons you learn now will pay off down the road.