Opening a franchise is almost a sure way of avoiding setbacks that come with opening an own business. It’s mostly perceived as a tried, tested and proved-to-be successful business venture. The franchisor teams are often good at developing sales networks, business brochures and sales representatives. They can still make appealing and convincing web advertisements hence easily persuade you into investing with them. But what they won’t disclose are the risks involved with starting a franchise.
Below are some of the must-avoid franchising pitfalls. Check them out.
1. Lack of adequate capital.
Like any other business, buying into a pizza franchise opportunity or any venture of your choice is never a boom from day one. You must be prepared to run the business at low profits during the first month or so, opines Forbes. Sometimes you may find yourself running the business at losses in the beginning. It’s normal, and you should never be discouraged by such trends. However, you must be prepared with some backup funds just in case the situation gets worse, lest the venture flops.
2. Ignoring research and advice
It’s assumed that buying into a well-established business guarantees success. Of course, well-established businesses are identified by the customer base, successful franchises, positive customer reviews, appealing references and so forth. However, LinkedIn warns that all the hard work is not done yet. You must do your research. Talk to franchising gurus that are well-versed with franchise agreements, expected code of conduct, case studies etcetera. It may cost you to get the advice, but it wreaks more havoc when mistakes are made.
3. Failure to market
When success knocks, most franchisees get swallowed with complacency thinking everything will be secure forever. However, this behaviour can quickly take you a step back to zero. Signs of success should give you more urge and to talk to as many customers as you want. Employ sales representatives, create social media groups and engage some of them by answering their questions, telling them how unique your products etcetera and you will achieve incredible results in your new venture.
Buying into a franchise is safer than starting your own business from scratch. But observing the above precautions makes your franchise more outstanding and may reap myriad benefits than you ever imagined.