Many people believe owning a franchise will make them rich, financially secure, and provide the life of their dreams. True, franchises have an extremely high success rate and a very high satisfaction rate among their owners. But is that success guaranteed when you purchase a franchise? NO!
There are no guarantees in life, or in franchises. There are those occasions when franchisees are not profitable, lose money, and close. Although most franchises provide a proven business system, not all OWNERS are proven.
Many enter into the franchise system, thinking all they have to do is come up with the money to get the business open, and it will run itself and they will make money. I don’t how many times I have had a prospective franchisee say to me, “I want a franchise that makes a lot of money”. Well, I have news for you, it’s hard work.
You have to WORK the system provided by the franchise. Many franchisees have impressive backgrounds and education, many from established positions with top companies. However, some have a difficult time doing “whatever it takes”, to run the business. Whether it be marketing or sales, to taking out the trash and cleaning the restrooms, nothing should be beneath you to keep your business operating and profitable.
If you want to be a franchisee, accept the fact that you will have a “franchisor” guiding and directing you. They have at much at stake as you, and their reputation is on the line. Remember your success is their success, so they will provide feedback, support, and direction with your business. However, some new franchisees, coming from corporate positions, may feel they don’t need any direction and know best on how to run the business. This can be disastrous. The better franchises have spent years developing their systems, FOLLOW THEM!.
Learn every job and every position of your business. Be able to step in and help when needed. Be ready when employees quit, don’t show, or simply think you can’t manage without them. I can tell you from personal experience, all these things happen. The last thing you want is one of your employees having an upper hand with YOUR BUSINESS because you can’t do their job.
Be able to accept the fact that you don’t “know it all”, regardless of your past experiences and expertise. Listen to your franchisor and other franchisees. It is YOUR BUSINESS, but they have been doing it longer. Utilize their knowledge and expertise. The wrong attitude coupled with a few bad decisions may jeopardize your investment and your dream.
Remember, the one major variable in a franchise’s success is you. A franchise can be a very rewarding and profitable business when operated the right way, by the RIGHT PERSON!