Franchising mistakes to avoid
Running a business on your own by becoming a franchisee is an appealing concept, but to make sure that you set off on the right foot, we’ve put together a list of franchising mistakes to avoid.
Not connecting with other franchisees
You might have friends that run their own business or have relevant experience in the field, but it’s important to pay close attention to the advice you get from fellow franchisees who already own the franchise you are looking into. Each business is different and has its own risks and intricacies, so the most valuable advice you could possibly get is from franchisees who are already successful. Get in touch with them and keep their advice and insight in mind when you make important decisions and estimate the costs of operating and setting up your business. Their wealth of experience will be invaluable in helping you make the most out of your investment.
Not taking your time
It’s always a good thing to be passionate about your project and keen to get it off the ground, but being over-eager can actually lead you to make mistakes and decisions you regret. This is why it’s essential for you to make sure that you have made measured decisions with your investment based on tangible facts before you purchase a particular franchise.
The very first thing you need to do before purchasing is to assess your own financial capabilities and research the market. Is the franchise you are considering doing well? Is it likely to grow in the future? Is your local area ideal for this type of franchise? These are just a few of the questions you need to answer before you commit to a decision. Buying a franchise is a significant investment, so make sure that you consider all the costs associated with it, such as royalty payments, rent, inventory and the franchise fee.
Not taking advantage of the support available
It can be overwhelming to deal with all of the elements of running your own business by yourself, particularly if you are buying a franchise for the first time. This is why it’s a good idea to find out more about the support that your franchisor offers their franchisees, as it can be less intimidating to be a part of a large and long-established brand. Some franchises will even offer you continuous advice and support, whereas others will not be as supportive and will leave their franchisees to deal with issues on their own. When you’re talking to other franchisees, make sure that you find out all of the details about the support available and if there are any issues.
Failing to plan ahead
Failing to set long-term goals prior to purchasing a franchise is one way to set yourself up for failure. In order to push yourself forward, you need to set yourself goals to aim toward. Having a long-term business plan to stick to is essential to make sure that you are always making progress. Choosing the right franchise for you will also be much easier if you know what you plan to do with it. Do you plan on turning your franchise into a family-run home based franchise business or run it for a short time before developing and selling it?
It’s important that your plan is realistic and suitable for your immediate and long-term goals so that you can follow it properly. Once you have established your goals, you can then start the process of achieving them.
Unrealistic expectations for independence
Before you invest your time and money in a franchise, it’s essential to understand the ways in which franchising is different from owning a business run independently. As a franchisee, you will be a small part of a larger, established brand, so you will be expected to follow the business techniques that are already tried and tested. This is why it’s essential for you to enter the franchising sphere with a clear head and a full understanding of your franchisor’s expectations fo that you can follow their instructions and implement the operating system that is already in place.
When you’re making business decisions, it’s essential for you to bear in mind that your franchise has been created by experienced people who have set up a fully-functioning business. They are on hand to help you successfully contribute to the brand, so following their procedures and expert guidance will determine how successful your venture will be.
For more tips and advice about becoming a franchisee, take a look around the UK Franchise Opportunities website, official directory of the Quality Franchise Association. You can also browse a range of Top Franchises on this website.