Franchise: 7 Deadly Mistakes Franchisees Make
A good franchise opportunity can change your life and enable you to achieve true financial independence. But if you don’t take the right steps, your business will be destined for failure before you even get started.
Unfortunately, many people start a franchise with false expectations and misconceptions about running their own business. These entrepreneurs have big dreams, but often those high hopes are what cause the mistakes that ultimately kill their business.
Let’s look at 7 common mistakes that a Franchise can make – and how to avoid them.
No matter what your experience – first-time business owner or experienced entrepreneur – these tips could save you a lot of time and money.
1. Not being ready to run a franchise.
Let’s face it … not everyone is born to run their own business. Starting a franchise will require you to invest time, energy and money. While some franchises are much more profitable than others, nobody gets rich overnight. If you’re not ready to work, learn and grown, then you’ll have lots of challenges ahead of you.
2. Underestimating the investment.
Many companies will lure you in with a competitively priced franchise fee. Too many entrepreneurs forget that this is only a fraction of the total money you’ll need to invest in a larger-scale business. To have realistic expectations, you must look far past the upfront costs and determine what your long-terms costs will be, year after year.
3. Failure to understand the product and how it fits the marketplace.
A franchise is nothing without a good product. Many inexperienced business-owners assume that their product will be popular, simply because it’s popular in other locations. This is a huge mistake. To ensure your business will be successful, you must do extensive research on the product you’ll be offering and the demand for it in your area.
4. Not understanding the legal agreements.
A legitimate franchise will generally require you to sign an agreement that outlines every legal aspect of your business and relationship with the franchiser. If you don’t understand these documents, or fail to seek adequate legal counsel, you could be putting your entire business at risk.
5. Not asking questions to other franchise owners.
Some companies will promise the world to prospective franchisees. But if you don’t speak to other franchisees who are already running the business, then you’ll never know if it’s truly a solid opportunity or a dud. Before you start any franchise, be sure to talk to as many franchisees as possible. Ask questions, find out what the common challenges are, and make sure people are already having success!
6. Failure to research the best locations.
Even the best franchise business will fail if it’s up against too much competition, or if the products aren’t right for the local population, or the business is located in a hidden, obscure location. Take your time to find the absolute best location where your business will thrive.
7. Improper training – or a complete lack thereof.
Your new franchise won’t stand a chance if you or your staff are not properly trained. Don’t assume you know what to do and don’t need any help. The best franchisers will offer valuable training to make sure your business gets off the ground without any problem. Take advantage of these resources!
Don’t make the mistake of starting a franchise on the wrong foot.
At HUMAN Healthy Vending, we offer a highly profitable business that’s easier to start and more affordable than most traditional franchises. Our unique vending opportunity is an easily scalable business, powered by healthy foods and drinks that people need and want. Let us show you how HUMAN can help you start a lucrative business in your area.