Buying into a franchise can be a great alternative to starting a new business. If you choose the right franchise you can considerably increase your chances of success, but there are a few common mistakes that you should be sure to avoid.
- Set Realistic Financial Goals: You need to be honest with yourself – and your franchisor – about your financial situation before you get started. Listen carefully to the financial predictions of the franchisor and try talking with other franchise owners about their start up experiences to make sure you have a realistic expectation of your initial financial outlay.
- Don’t Make Assumptions: It is a common misconception that all franchise systems are the same, but in reality every franchise has a unique culture that goes far beyond figures. Finding the right system to suit your needs is more complicated than just picking the biggest franchise with the lowest price. Meet with the franchisor and other franchise owners before you make any commitments to make sure that you’ll fit in with the culture of the company.
- Stick to the Plan: If you’re committing to a franchisor then you also need to commit to following their business plan. Deciding to follow it halfway, or mix it up with your own management style is a recipe for trouble. Not only do you run the risk of violating the terms of your franchise agreement, but you increase your risk of failure. Franchises are less risky than independent start ups because they have a tried and true method for success so for best results, avoid messing with the method.
For more information about opening your own franchise, contact the team at Kwik Kopy today.