From a recent "Ask an Expert" article by Steve Strauss as it appeared in USA Today.com

A successful franchise centers on attitude

Q:Steve, I would like to buy a franchise, however, I am not sure I am cut about to be a franchisee. I am fairly independent and am not sure I would take direction well. Should I do it?Joe A., Eagle Rive, Wisc.

A: To answer your question, I went to an expert. Fred Berni is the President of Dynamic Performance Systems, a company that helps franchisors select successful franchisees. (www.franchise-profiles.com.)

In an effort to help his clients, Berni and a staff of psychologists undertook a survey of hundreds of franchisees over a several year period in many different industries to discover how and why successful franchisees differed from less successful ones.

The results were interesting, to say the least. The first interesting thing that the survey discovered was that, as Berni says, "Attitudes, not personality, are the best predictors of franchisee performance. Beliefs drive results."

Berni's survey found that, more than skills, successful franchisees shared common core values and attitudes. "Initially, we were somewhat surprised to learn that pre-existing skill-sets had no predictive value. Upon further reflection though, this makes perfect sense. After all, every franchisor trains candidates in those skill-sets necessary to actually run the business," he says.

So, just what are those attitudes and values that make a difference, that separate the excellent from the mediocre franchisee? Hang on, because the results are illuminating. By the way, if you think these traits could describe any successful businessperson, not just the successful franchisee, you are right. (These results are in order of importance.)

1. Successful Franchisors Involve Their Employees in the Business. Maybe the most fascinating fact is that the way a franchisor treats his employees is the single most important factor in determining franchise success. The survey found that

• Successful franchisees truly believe that their employees are a valuable business asset, not a burden or business expense;
• Successful franchisees manage in a participative, as opposed to domineering, style;
• Successful franchisees treat employees with decency and respect.

Because of such enlightened thinking, franchisees who do treat their employees right tend to have less staff turnover, fewer hiring expenses, more contented employees, a happier workplace, and thus more loyal customers. Happy employees offer better customer service, which in turn translates into increased profits.

2.Successful Franchisees are Optimistic. Having a positive outlook on life generally and your franchise in particular have been found to be major factors in franchisee success. It is not difficult to figure out how this attitude translates into day-to-day activities. If valuing your employees creates happier employees, which in turn equals happier customers, the same is be true for optimistic, positive franchisors. That positivity filters down through all areas of the business, raining light on everything and everyone associated with the business.

3.Successful Franchisees are Moderately Independent. Yes, the nature of the franchisor-franchisee relationship is one where independence is not a paramount virtue. But surprisingly, it is those franchisees who in fact are somewhat independent — who have ideas and try them out, who think for themselves and are self-determining — that are most successful. The best franchisees find a balance between following the system (you did buy the system for a reason, right?) and being entrepreneurial.

4.Successful Franchisees are Adept at Sales and Marketing. This trait is linked to the independence factor. Franchisees who are most successful do not just wait for business to appear, or for their franchisor to roll out a new marketing campaign. The most successful franchisees work at becoming knowledgeable businesspeople. They learn new marketing tricks and try them out. The schmooze and sell. They network and pitch products. In other words, they know sales is a game, and it is a game they enjoy playing.

Another aspect of this is that the best franchisees take off their manager hat and do not expect their staff to do all the selling. The excellent franchisees are out there, in the store, talking to customers, making suggestions, and making the sale too, knowing that if they have a "selling attitude" their employees will too.

5.Successful Franchisees are Social. Business is a social game, and the best franchisees know that. No, you cannot really help whether you are an introvert or an extrovert, but just know that being extroverted and gregarious directly affects the bottom-line. Employees like you better and relationships with customers are strengthened.

The upshot of all of this is that franchisees who are most successful know that people come first. If they treat their people right, other things fall into place. It is the franchisee who is dictatorial, or resentful, or restless, or negative that has the least chance of success.

Today's tip: All of these traits are not just amorphous attitudes. They are beliefs that create actions that promote success and sales. Try them and see if your business is not a better, more productive workplace.

Ask an Expert appears Mondays. You can e-mail Steve Strauss at: sstrauss@mrallbiz.com. And you can click here to see previous columns. Steven D. Strauss is a lawyer, author and speaker who specializes in small business and entrepreneurship. His latest book is The Big Idea: How Business Innovators Get Great Ideas to Market. You can sign up for his free newsletter, "Small Business Success Secrets!" at his Web site — www.mrallbiz.com.