Franchise Prospects Affirm Key Strengths for Successful Ownership
July 19, 2023 — The majority of franchise inquirers profess having two of the most important characteristics for succeeding at franchise ownership, according to the June 2023 Startup Sentiment survey by Franchise Insights. “Willingness to follow a proven system” was reported by 60.7% of respondents, followed by the selection of “grit – persistence towards a goal despite obstacles” at 53.0%.
Survey respondents are invited to select only three of the factors on the list, or provide an “other” response, so these are what they deem their most valuable attributes for franchise ownership.
‘Willingness to follow a proven system’ and ‘Grit’ are cited by most survey respondents.
Grit was defined as “perseverance and passion for long-term goals” by psychologist Angela Duckworth and colleagues in a 2014 study of the predictors of success. In this pivotal work, the authors found that traditional predictors like intelligence (as measured by standardized tests like IQ) and talent — possession of extraordinary abilities — were secondary to what they came to define as grit. If you have not been exposed to the research findings, you might enjoy this six-minute TED talk by the author whose video has been viewed over 22 million times.
Grit may be necessary, but it is not sufficient for the successful operation of a franchise. The willingness of franchisees to follow a proven system is a well-known success factor, and the recognition of that characteristic in today’s prospective owners bodes well for the coming generation of franchisees.
Team leadership was the next most reported strength, at 42.7%. Access to sufficient startup capital was reported by 35%, and 34.2% cite a supportive partner or spouse. Almost a fourth (24.8%) have experience in the business segment they are pursuing for a franchise.
27.4% of respondents include prior business ownership in their top three strengths.
An “other” category garnered some valuable other traits that we will include in the next round of the survey. “Training” experience, and “sales and marketing skills” are two examples.
These aspiring business owners see business conditions improving for startups in the next three months. In the same survey, 69.2% of entrepreneurs planned their launches within the next six months.
The most recent Startup Sentiment Index™ survey was conducted June 20-30, 2023.
Download a copy of the June 2023 FranchiseInsights.com SSI report here. See excerpts from prior SSI™ surveys and subscribe to receive the Small Business Startup Sentiment Index™ monthly report when it is released.
The Small Business Startup Sentiment Index™ is based on a monthly survey of individuals who have recently inquired about businesses or franchises for sale on the digital assets of FranchiseVentures.
FranchiseVentures is the leading franchise lead-generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead generation brands include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, SmallBusinessStartup.com and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.
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Published on Wednesday, July 19th, 2023.