Mistakes to avoid as an aspiring franchisee
If you have already made up your mind about buying a franchise and now are looking to set things into motion, then this is for you. Have you started your research? Are you doing it the right way? We give you a few tips on how to start the process. There are a few mistakes that an aspiring franchisee should definitely avoid in order to get off to a good start. The mistakes to be avoided are as follows
• Just industry figures Just relying on industry figures and trends can be grossly misleading. Although these stats do provide a good idea about the state of the business, these can’t be the stand alone factors. Many factors have to be taken into account. Relying on these figures alone and believing that this will lead to success can be fatal.
• Under-estimating financial requirements Never under-estimate the financial requirements of a franchise. Never try to inflate your finances just in order to impress to the franchisor.
• Number of Franchisees Also, just relying on the number of franchisees can be misleading. At times a brand can acquire a number of franchisees by good advertising and marketing, but in reality the franchise might not be very successful. Although the number of franchisees in a system is a good indicator, it should not be considered an absolute indicator of a good franchise system.
• Ignoring professional advice Most aspiring franchisees often don’t hire an expert franchise consultant in order to help them select the right franchise. This selection will determine your future and hence it is very important to do all the right things at this time. It is always advisable to hire an expert franchise consultant and an expert franchise attorney to prepare a good franchise agreement.
• Assured success This is one of the biggest causes of downfall of new franchisees. They believe that owning a franchise automatically ensures success. There is lot more to business success then just owning a franchise. Even a franchise business needs a lot of hard work and commitment. Hence complacency with respect to hard work and commitment can lead to a franchisees downfall.
• Expecting to be spoon-fed Most new franchisees believe that the franchisor will run their business for them. This is not true, although the franchisor will forever be there to guide you, he is not going to run your business for you. You are the owner of your business and it’s your duty to run it, the franchisor will only train and guide you and not spoon-feed you.
• Selective acceptance Many new franchisees want freedom and they prefer to implement the franchisors suggestions in only a selective manner, which is not right. Such half-measures can never get you full results. Hence it is very important to implement the franchisors suggestions wholly.