A lot of people dream of running their own businesses and franchises allow plenty of people to make those dreams a reality. Opening your own franchise helps support the early process of getting your business out there- the name and brand are already recognized and familiar to many.
But, sometimes there still is room for error. What do successful franchisees do to avoid common franchise mistakes? Knowing what to watch out for helps you follow your path to success.
You Don’t Need to do it Alone
If you want to open your own business, you probably have a driven, independent spirit. However, one of the most common mistakes made when opening a new franchise, is not accepting help from those around you. A successful franchisee knows that they are not in this alone and are willing to learn from others.
Opening a new business is a huge undertaking, and you will need assistance. Try talking to a franchise attorney for advice and see what your first steps should be. They can also help you understand your terms of agreement, any franchising financing, and offer advice to your particular situation- helping you to avoid many common franchise mistakes.
A successful franchisee also knows to accept any training that their franchisor offers. Franchisors will be sure to give as much assistance as possible too- your success makes the business look better as a whole. They want to be represented well and will give you all the training and skills you need to achieve your business goals.
Do Your Research First
Being able to open your business is exciting! However, many franchisees can be too quick to jump in without doing their research. A successful franchisee does all of their research before buying and setting up their franchise. Not doing in-depth research, is one of the most damaging franchise mistakes there is.
You need to make sure this franchise is what you want- is it a perfect fit for your interests and ideals? This is likely going to be a long-term project for you, you need to do your research and be sure this particular franchise is for you. Otherwise, you might get bored after a while and lose passion for the business you opened.
You also need to research what the franchise’s business model is, what support they can provide you, and the history of similar businesses in your area. You want to be sure you are giving yourself all the opportunities possible to win.
There are plenty of websites that provide reviews of businesses by location and services offered. Researching how the top 100 franchises run is always a great idea too- they paved the way to success and can be good for learning from. Of course, you would not need to follow them exactly.
There are a lot of franchise opportunities out there, just make sure to do some research before you commit to anything. You want to be aware of everything that you are signing up for. A franchise is more likely to fail if you are not willing to put the research in beforehand.
Don’t Give in to Fads
Being a part of the digital age, you are constantly being exposed to new trends and fads. No matter how cool and “in” a franchise seems to be, you need to step back and think to yourself, “Is this franchise going to be as popular in a few years?” or “Will this fad last?”
It happens all the time- the latest trend falls off the face of the planet, leaving many questioning what happened. For example, fidget spinners were everywhere just a year ago. So many kids had them that they had to be banned in some schools. What if someone had opened an entire store dedicated to fidget spinners? They would be regretting it now.
Think of McDonald’s. It is a recognized brand with a lot of franchises open all over the world. A well-known brand like this would not go out of style, even making its way into the top 100 franchises to own. They have been running their restaurant for many years, and they show no signs of stopping.
In short, it is important to realize that fads fade. Successful franchisees know to back businesses that can stand the test of time- not whatever current craze has the nation in a storm. It could all fall apart soon enough and you want security. Of course, chasing your dreams is important and you need to be sure you are passionate about the franchise you choose.
Check Your Capital
Your franchisor will tell you about any upfront costs and franchise fees that need to be paid. But, a successful franchisee is prepared for any unexpected costs that may pop up. You need to be ready for paying your employees and getting marketing out there- both of which can be difficult when you are just starting up.
A financial advisor can help you plan every single expense out. You do not want to skip out on checking your franchise financing, it could all go wrong really fast. You need to secure your capital.
However, this can be difficult. There are many franchise opportunities open to you- small business loans, lines of credit, other personal loans, and more! Meeting with a banker is a good step to figuring out what you need and what is available to you. Some franchises even offer assistance to their franchisees.
Those are all the most common franchise mistakes that you need to avoid. Opening your business is a great franchise opportunity and now that you know what to watch out for, you can be largely successful! These common mistakes are easy to catch and fix.
To summarize, every successful franchisee realizes that they are not in this alone. They also know what to research, what fads they should not give in to, and the best ways to secure their needed capital. If you follow all these tips, you will be a successful franchisee too!