Entrepreneurs who pursue the route of franchising and secure their own operations have a decided advantage over those who chose to establish their businesses from the ground up. The model itself is attractive to any up-and-coming owner looking for a leg up in highly competitive industries.
Franchising offers instant brand recognition, specific structures to follow, and a foundation that comes from a franchisor’s ongoing support. Most importantly, ownership of a franchise effectively brings in existing customers already loyal to the enterprise.
In a competitive market, important decisions must be made to survive and stand out above the competition. Both new and existing franchisees can run the risk of making small mistakes that have significant consequences.
Going at it alone
Even though you bought into the concept of a franchise, that means that you must avail yourself of all the resources available. Whether you think you know more or have better ideas, failing to leverage what is abundantly available to you can be a catastrophic mistake both in the relationship with the franchisor and your franchise’s future.
Skimping on marketing
Despite being part of a franchise team, franchisees sink or swim on their own against competing enterprises in their areas. Making your presence known in a prominent way is the start of building a network in the local area. Becoming active in the community builds goodwill and establishes deep roots.
Awareness of your newly established presence is paramount. This may not be the time to save costs. A well-funded marketing budget with extra financial resources to target local customers can make a significant difference.
Business plan non-preparation
While your franchisor’s vast resources help establish a business structure, customization is key to long-term success. A business plan serves as a roadmap and should be customized to your needs and goals. The document should also address the unique aspects of your community is paramount. It can also be used to plan for expansion both financially and operationally.
Careful steps in the lead-up to purchasing a franchise and subsequent operation. Entrepreneurship represents risks. With hard work and smart choices, those risks can pay off.