Franchising is to adopt the business of someone including the products and services offered by the business as well as the name of the business. This someone is called the franchisor who is the owner of the business providing the products and services and assigned this business to independent individual called the franchisees. The franchisee has the right to market, distribute and manage the franchisor’s product or service and use the business name for the period of time.
Most people think that the most easy and profitable business to build nowadays is franchising. They things that you have to to is to invest money without thinking that there is also a need of lot of hard work, marketing and management skills and a lot of perseverance to learn that process of franchising in order to be successful.
The following are some franchising mistakes:
• Wrong location
Settle for the bad location makes your franchising business failed even though your products or services offer is good. Find a location that your business will have exposure and easy access. Looking for right location consumes times and effort but it worth it after a while. Visit your potential location at different days and time to observe if the location is visible and accessible to public. Extra time on the beginning have great impact on your long term success and avoidance of business failure.
• Inadequate capital
If you do not have enough capital for business funding, it is more likely that you will only struggle to endure hard times. Remember that any business either franchising business or traditional business takes a couple of months before beginning to reap the profit.
• Mismanagement
Make sure to hire the people suited to your business. Ensure that the people working for you has the skills and training in order to do the job properly. Also, you have to know how to manage your people.
• Relying on your instinct
Do not assumes that your franchising business will be successful because your see other existing franchisees is profitable and successful. You have to devote your time learning the process of the business. Make friends to other franchisees to get knowledge on to do become successful in their business endeavor.
• Not applying the proven system
The franchisee does not apply the system learn from the franchisor in his franchising business. Does not implementing the marketing plan as well as the franchisor’s training on the business.