10 Sep Top Franchising Mistakes You Need to Avoid
Finally, you’re ready to franchise your business, the ongoing project you’ve been thinking about and putting off for years. Congratulations! You’ve made a smart move towards making your business more successful.
Now that you’re serious and gearing to go, you need to assess your skills, learn about the risks involved and avoid these pitfalls especially in the initial days to ensure continued success in your venture.
While you are establishing your business, it’s important to have adequate funds available. Oftentimes, the reason some people fail at franchising their business is due to underestimating the capital needed for the business to thrive. Apart from the initial investment required to establish the franchise, franchisors should ensure they have sufficient funds available to help support the new franchise system especially during the initial 6- 12 months.
#2 Seeking Advice from Unqualified People
Whether you’re talking to a well-meaning neighbour about legal aspects or a parent who has dabbled with a couple of business opportunities before, it’s best to avoid people who are not well-versed in franchising. In the same way, you should also refrain from taking the DIY route. Leave it to the experts who have the background and specialised knowledge to assist you. Read our previous post about franchise consultants and how they can help you especially in the early days.
Of course, you’d like to see your company’s name all over the country. But expanding outside your state too soon can become a big problem instead of a wise investment. For one, travelling expense can become an issue when franchisees are far from the headquarters. As a franchisor, you would have a hard time providing training and support if you’re too far from your franchisees.
#4 Thinking Short-Term, Get-Rich Quick
Some businessmen think that a franchise opportunity is synonymous to a get-rich quick scheme, slacking off in the initial stages of franchising. Although you can become successful within 12 months, hard work is still an element that shouldn’t be taken for granted. Undervaluing the need to make sound decisions can result to costly mistakes.
Many people have failed in franchising, mainly because they made wrong decisions. Don’t let the same thing happen to you. By consulting professionals on how to franchise your business, you can succeed with less risks. Financial independence can be yours, thanks to your hard work and sensible decisions.
Thanks for reading,
The Franchise Institute Team
1300 855 435