The 5 Biggest Reasons Why Franchisees Fail…
Great stuff: you’re thinking about a franchise opportunity, ready to embrace the procedures and core values of a respected brand. No matter how strong the business model, however, franchising success isn’t a guarantee – failure is still possible. We don’t want to be harbingers of doom, but it’s crucial to acknowledge what can go wrong if you’re an underprepared, hands-off business leader.
So, while Rainbow International welcomes any franchise interest, here are some of the biggest mistakes – the self-sabotages, if you will – that can undermine your investment. Take note of them before you bear the franchisee mantle…
- Choosing the wrong premises
Franchisees must source, negotiate and pay for their premises independent of the parent company. For those uninitiated in business rents, there’s a danger here, since you might become enamoured with a costly building in a prime, busy area. It might bring you more clientele, or prove to be a huge drain on your revenue. Watch out for expensive, long-term leasing agreements that’ll lock you into something you can’t sustain.
- Relying too much on ‘textbook guidance’
Yes, the franchise should certainly give you all the right training, support and physical tools to deliver a service as they would expect. Yet eventually, you’ll face problems that aren’t in the industry manual. Flexible, independent thinking is your only way out of a thorny scenario, and it’s vital to embrace this way of looking at the business. Remember: you’re being hired for your unique potential, not the rigid mind of a robot!
- Hiring the wrong staff
What do you value more: a winning personality, or the skills to get a job done to the standard you’ve dreamt of? Some franchisees, having little experience in staff hire, can treat the interview process like a first date instead of a broad, cogent breakdown of why someone deserves a spot on their team. Of course, to an extent, personal characteristics are relevant – but they shouldn’t dominate your hiring instincts.
- A reluctance to compete
Whatever the nature of your franchise, there’s always going to be a contender (or several) lurking at your peripheral. Local competition is fierce; the stature of a franchise in a community depends on how well you track, contrast and push against your nearest rivals. How to do this, you ask? Well, there’s the inherent potential of b2b networking, as well as the chance to bid for tender work in the region. For this, you need a competitive streak.
- Not putting the effort in!
We’ve saved this till last, since it is – almost without question – the most common franchisee blunder. And it can be pinned on simple naivety: “This will be the easiest thing in the world”, runs the mistaken line of thought. Yes, franchises give you a ‘business in a box’ with potentially lucrative earning potential, but only if you approach them with the respect (and commitment) they deserve.
Now that you know what not to do, step forward to a franchise bid that rewards your dedication! Interested in managing a specialist cleaning and restoration service? Contact Rainbow today, and we’ll help you become the cream of the franchise crop.