Avoid These 3 Mistakes When Buying a Franchise | Franchise Strategy Partners, Larry Reed

Have you seen the headlines about the “Great Resignation”? More and more people are choosing to leave unfilling jobs in pursuit of something bigger and better. In many cases, that search leads them to franchising!

Franchising has a lot of perks right from the start. When you choose to join a franchise, not only are you choosing a brand that has already been established, but you have a customer base and support system in place when starting your business.

But like anything else in life, the path doesn’t always run smooth. A misstep can threaten the success of your business, so it’s important to do all you can to avoid them.

At Franchise Strategy Partners, my goal is to help you be as successful as possible. That’s why I’m taking a few minutes today to talk about three common mistakes and how to avoid them. Read on to learn more.

Mistake 1: Underestimating the Costs

When you buy a house, it’s important to consider not only the cost of your mortgage but also other costs you might not consider, such as insurance, closing costs and maintenance. The same is true for investing in a franchise—you need to consider the true cost and ensure you’re prepared for it.

Also, talk with other franchisees within your organization to get a good grasp on reality, financially. On average, it takes most businesses a year before they start earning a profit. You want to make sure you understand where your cash flow needs to be in order to pay off your loan while also handling various other costs of your business.

Mistake 2: Trying to Go It Alone

A major benefit of franchising is that you’re in business for yourself, but not by yourself. So, don’t try to do it all alone!

When you invest in a franchise, you are given a franchise support system. Different organizations provide different resources, but in general, the franchisor typically provides assets such as branding, marketing resources, supply chain assistance, and ongoing training and education.

Lean in to this assistance. The franchisor of your business knows what it takes to make your business succeed. Don’t miss out on this valuable advice—reach out to those at the corporate level, as well as other franchisees who know the ropes.

Mistake 3: “Winging” It

There’s a saying that “A goal without a plan is just a wish.” That’s true in anything, but it’s especially true in business. To set yourself up for success, you need to thoughtfully lay out a plan outlining every aspect of your franchise operations.

Make the plan detailed, and think through any and every potential hiccup that could occur. You want to outline the next steps to take in a variety of scenarios—this will ensure you’re less overwhelmed when chaos occurs, because you have a plan in place.

I’m ready and waiting to help you find the best franchise for your unique needs! Get in touch today to get started.