Starting any business comes with inherent risks, but buying a franchise is less of a risky proposition than starting from scratch with a new concept or idea. When you buy a franchise, you buy into a proven business model where the marketing and branding are done, making it possible to start realizing profits earlier on than starting a business from scratch. The type of franchise you buy dramatically impacts your success and profitability. If you are ready to invest in a franchise, pay heed to these top four mistakes and avoid disaster.
#1 A Bad Match
The first consideration, and maybe the most important, is to do some introspection. Just because a franchise is profitable, that doesn’t mean that it will be a match for success. Finding the right franchise is all about understanding your personal and professional goals and values of what you want to get out of ownership.
Ask yourself the hard questions about what your personality style best matches. Also, take stock of your strengths, weaknesses, and skills. An essential aspect of deciding is knowing what you are looking for in terms of work/life balance. Do you want to buy into a business-to-business franchise, or is a business-to-consumer a better model?
Do you have the time to be hands-on in a “brick and mortar”, or would you rather work remotely, operating from home? It isn’t just about being successful - make sure to think about what makes you tick. Sure, it is about money, but it is also about finding what fulfills you. If your personality style isn’t cut out for a particular franchise, you could end up doing something that you would rather not, and that is a huge mistake!
I would highly recommend Seth and the Frannexus Team above all others if you are considering a franchise purchase. -Randy James, Franchise Owner
#2 Not Talking to the Franchise Owners
One of the best ways to both choose and rule out franchise opportunities is to talk with existing franchise owners or even past ones. Much like getting reviews from a customer, a franchise owner can give you the details you need to make an informed decision. But what is critical is asking the right questions.
That is where Frannexus comes in. We have the experience to know what the pertinent questions are to weed through potential franchise opportunities. We guide you through the process and make sure to match you with owners to get first-hand information about the ins and outs of things like daily operations, the amount of commitment you will need to make, and how much support you will receive.
#3 Trying to Go-It Alone
Potential homebuyers don’t just look at a house on their own and decide to buy it. They have a real estate agent who walks them through the process, tells them about the neighborhood, and provides additional information, like the quality of the school districts and the community’s character. The same should be true of a franchise. The mistake that most people make is going directly to the internet to research on their own.
Over 3600 franchises are operating in the United States, and not all of them are successful. Even the ones that are, might not be a successful fit for you. A franchise is undeniably less risky than a business startup, but only if it is the correct fit for your expertise and goals. We help you understand your financial goals, where your core values lie, and what type of culture suits your personality and work style.
If you need strict guidance, you are probably better off buying into a more mature and established franchise. If you want slightly more freedom and control, buying into a new franchise might give you more flexibility. A franchise coach can help you weed through all the factors you need to make an informed decision.
A franchise advisor can also help find a franchise with the greatest likelihood of success for you personally. There is no reason to reinvent the wheel or spin your tires, wasting time sifting through potential opportunities when we can help you hone in on which options are the best for your goals and your personality.
#4 Thinking Your Franchise Will Run Itself
Many people have a misconception that a franchise is an absentee proposition and that they can stand on the sidelines, but that is not the case. If you go into it thinking that it will sustain itself just because you put the money up, you are likely going to lose your investment. Before you put yourself into a financial bind, it is always best to seek the advice of experts to make a wise investment.
It would be a big mistake to hit the internet, attempt to sort through limitless options, and choose a franchise without first going through all of the assessment and due diligence to find not only a successful franchise but one where you will be successful. Contact a trusted and experienced franchise consultant to help you find the right franchise opportunity.
Let Frannexus Be Your Guide!