August 26, 2013 11:08 am
A franchise marketing guy for a major building restoration company was doing his work this morning at Starbucks, and little did I know that he’d talk about why franchisees fail. He was interviewing plumbers and asking for referrals.
“The reason so many of these franchises fail is because the franchisees think they get business automatically and they don’t know how to develop good relationships,” said the marketer.
“Not only that,” responded the plumber, who was not a franchisee, “they don’t know the numbers. They hire a lot of people and fall under that weight. They think they’re making money, but they’re not.”
Wow. Two excellent lessons in how to succeed in franchising — free, at Starbucks!
It’s almost amazing that anyone succeeds in franchising simply because there are so many things to know not only about franchising, but about yourself if you’re the franchisee, and then how to operate the business. When you consider that people buy a franchise and go to the franchisor’s training program for a couple of weeks, or three, and then launch their business, real time, it’s surprising that more do not fail. How do you learn everything there is to know in such a short time frame? And what if you forget a step or two in the business building process?
Good franchisors know the answers to those questions and challenges.
Proper support helps
I don’t know how many franchisees fail because they don’t know the numbers, or because they think they will get business automatically. But it’s a shame that any franchisee fails for those reasons. Good franchisors work hard to make sure these scenarios do not occur. With the proper support, a franchisor can know what a franchisee thinks — at least most of the time.
If you’re buying a franchise, investigate and evaluate the franchisor’s support. It could save your business, your money, and your well being mentally and physically.
What else should you evaluate when you consider buying a franchise? You’ll find a practical checklist in the Amazon best selling ebook Buy “Hot” Franchises Without Getting Burned.
Tags: be an entrepreneur, franchise failures, franchise success, risks
Categorised in: Blog Articles, Business risks, Buy a Franchise, Buying a franchise, Franchise due diligence
This post was written by Dr. John Hayes