Opening your own business is a major life decision that requires immense thought and research. To help ease some stress, BirthdayPak has put together a list of 4 common mistakes new franchisees make and how to avoid them.
Neglecting to Do the Research
Future franchisees want to be careful about picking a business that corresponds with not only their goals, but also their individual strengths, personality, and past experience. Once they’ve narrowed down their selections, and begin seriously talking to potential franchisors, they want to take in all of the information they provide. They should also call current franchise owners in that business to ask them about their experience, as they will be the best sources of information.
Misinterpreting the Franchise Model
One of the main reasons many professionals choose a franchise over an independent business is that they want to be an entrepreneur, with the support and success of a proven business model. While franchisees may understand this in theory, they may realize that they want more autonomy in running their business than the franchisor will allow or they rely on the franchisor far more heavily than is necessary. If they are new to franchising, part of their homework should be to understand the basic franchise model and how a franchisor relates to a franchisee.
Before franchisees begin the process of choosing a franchise, they need to evaluate their financial situation and accurately determine how much they have to invest and spend on their new business. The answers to these questions will usually narrow down their field of options dramatically. Once they begin to talk to franchisors, they should thoroughly review each Franchise Disclosure Document. This document includes background about the company, the start up costs and fees, and the overall performance. While every element is important, be sure to note the initial and ongoing investments required. Oftentimes, the start up costs seems reasonable, but franchisees overlook the amount of time it may take to launch their business before they earn a profit.
Underestimating the Time Commitment
A good franchise system has the brand recognition and programs to help you get your business started, but it still requires hard work, dedication and time to learn the business.
Chad Bickle, Vice President of Franchise Development at BirthdayPak, explains “Franchisees are required to use their organizational and time-management skills to achieve success as a franchisee. They need the discipline to be able to communicate, interact, and network every day without the supervision of an authority figure that they might be used to.”
While there are certainly many franchises that may offer more work-life balance than others, each one still requires the full commitment of a franchisee in order to thrive. The world of franchising is vast and finding the right franchise can take weeks, months, and sometimes even years. To see if owning a BirthdayPak franchise would be a good fit for you, click here.
BirthdayPak is expanding nationwide through franchising and could be the business opportunity you’ve been dreaming about. To get more insight on this opportunity, click here to setup a time to speak with Chad or visit www.BirthdayPakFranchise.com.