8 Myths About Franchising
Procrastination as well as misinformation are the leading causes for future entrepreneurs not engaging in a business venture. ?This article is to provide you with the confidence for owning and operating your own franchise.
Many are discouraged or are not aware of the potential for investing in this business. ?So therefore, once you have reviewed the article hopefully you will be encouraged to seek further information to invest in a franchise.
8 Myths About Franchising
Myth 1: ? I can?t afford a franchise.
Sure you can, if you look at it for what it is: an investment into your future. ?Most franchises can be established for well under $100,000, and some can be started for as little as $12,000. ?Your only payments to the parent company are a one-time franchise fee and weekly or monthly royalties, which are usually determined on a case-by-case basis. ?Beyond that, your out-of-pocket expenses are the same as they would be for any business ? salaries, local advertising, etc. ?The difference is you have the support and training of the franchisor, which will help you ramp up to full speed far more quickly that you could on your own.
Also keep in mind that one of the major causes of business failure is under capitalization. ?While the franchisor will be able to give you a good idea of the start-up cost, sometimes these will vary due to leasehold improvements needs and other valuables. ?You will need enough money to not only open your franchise, but to run it until such a time as it is profitable. ?For some franchises, that may take a year. ?Remember, it is better to start out with more money than you think you will need rather than less.
Myth 2: ?I must quit my job to become a franchisee.
Many franchise concepts are specifically designed for people who are working other jobs. ?In fact, a large percentage of franchise owners are passive rather than full-time investors.
Can franchises still fail? ?Sure they can. ?But the vast majority of the time this is due to the owner deviating from the system and cutting corners by using inferior materials or altering formulas. ?The key to making it as a franchisee is consistency. ?If you don?t adhere to the business model ? which, once again, is in place because it works ? your chances of success will drop dramatically. ?You want to leave the habits from the corporate world where they are and bring along your marketable and transferable skills.
Myth 3: ?I?ll only be successful if I find the right business.
How do you define right? ?Many of us define ?right? as what we?re already good at. ?But don?t limit yourself. ?Define your transferable skill from the corporate world: ?delegation, management, marketing, etc. ?If you had them in one type of business, you can easily use them in another. ?And besides, another exciting aspect for running your own business, is to discover talent that you may not know that you posses.
Myth 4: ?I can only be successful doing something I love.
This perhaps may be considered a myth; however is there a bit of truth to this!? ?I recall as a child after a fishing trip with my Dad. ?We were cleaning fish. ?He made a comment about how much he hated having to go to work the following day. ?I stated, ?Dad you own the business.? ?He retorted, ?Yea son, I love money. ?I love the good things in life. ?This business, even though it is lucrative, it is also boring.?
Will you enjoy the franchise?
Sometimes people buy a franchise they think will make them a lot of money, only to find later they do not enjoy the business. ?The adage, ?know thyself,? certainly applies here. ?You should buy a franchise that centers in an area that you will enjoy fo the next 10-15 years.
Determine your interests and types of businesses you might really enjoy. ?These are key in helping to start your research for making the best decision for owning a franchise. ?Keep in mind, your business venture will affect ever aspect of your life. ?You might as well slave for something that you love.
Case and point: ?I?m in love with my business partner! ?You know the saying, ?no romance without finance.? ?So, even though owning a business has nothing to do with romance. ?Owning a business; being in charge of your own destiny, does have some serious motivating factors. ?Pretty soon, I?ll be able to afford to sweep her off her feet.
Myth 5:??I?ll instantly know the right opportunity when I see it.
Many people want to fall in love with their business at first sight. ?That is an emotional decision, not a career choice. ?You have to take the time to learn about the details and nuances of an opportunity to understand its potential. ?You simply can not do that when you make a determination based only on what you feel today.
Myth 6: ?I can not be in a business I know nothing about
Of course you can. ?By knowing thyself, you?ll come to understand your strengths and weaknesses. ?It is natural to want to stay in your comfort zone and stick to areas you have experience in. ?But as a business owner, your job is running and growing your business, no matter what it is. ?Remember, you have transferable skills. ?That will be your strength. ?You can hire people who can provide skills in areas that you may lack. ?Your road to success is buying into and learning the franchise system ? which is already a positive working model ? and then using your talents and judgement to make it grow.
Myth 7: ?Franchises stifle creativity.
Again, this is patently untrue. ?The only limitations you have are those that have already been proven to generate income. ?This might include signage, uniforms, formulas, protocol, and so on ? the basics that allow you to represent the brand and your own location as professionally as possible. ?But it is completely up to you to think up new ideas and make suggestions to corporate. ?In fact, most franchise parent companies encourage suggestions, because it?s where they get many of their best ideas. ?McDonald?s corporate, for example, did not come up with the inspiration to start selling breakfast. ?The concept of the Egg McFuffin was developed by a franchisee.
Myth 8: ?There is no freedom in a franchise ? corporate dictates everything.
This is one of the most pervasive myths about franchise ownership. ?In actuality, there?s tons of room for individuality. ?The franchisor ?dictates? only one thing: ?the basic system ? the business model. ?Beyond that, you are in charge. ?You are managing your business. ?You decide who to hire and fire, how to market your location and how to promote it regionally. ?Keep in mind that the franchisor wants you to succeed, because if you don?t, they don?t. ?It is a win-win situation.
The very key to franchising success is the consistency of product and service customers find from one franchise to another. ?When you follow a particular system. ?People who are extremely entrepreneurial in the sense that they do not like to conform to ?predetermined formula should be very careful about buying a franchise.
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Comments or questions are welcome.
Source: http://blackfranchisenetwork.com/blog/black-franchise-networking/8-myths-about-franchising
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