5 Mistakes New Franchisees Make
We have already discussed some of the common mistakes people make when buying a franchise. Opening a franchise may seem like a simple way to run your own business. But rarely is business simple. Whether you’re looking to open a fast food joint, a gym or even a salon, below are a few nuggets of wisdom to contemplate before taking the plunge.
- Don’t buy a franchise to ‘be your own boss’
Franchising is based on conformity and uniformity. As a franchisee, you do not really hold the reins. You may technically be the boss of your shop, but you must follow the rules of the franchisor.
- Understand that franchisors can succeed even if franchisees fail
Though it’s true that the franchisor can make more money if its various locations do well, they can rake in plenty even when they’re not.
- Spend time with franchisees
If you want to make an organisation your life – at least for a few years – consider spending time working for it before you buy in.
- Imagine failing
It takes confidence and enthusiasm to startup your own business, even if it is an established franchise. Keeping your hopes up can lead to setting aside the idea that you could fail. Do not do that.
- Consider doing it yourself
How much are you really getting from a larger franchise organisation? Is it worth the monthly payments to the franchisor? A lot of franchisees come to feel that it isn’t but the reality is the opposite.