I had the privilege of mentoring and encouraging a friend about franchising this afternoon. I had a short stint at franchising in my early years of business. So short it only lasted less than 3 months! Although it was I would say a failure, it was a necessary stepping stone for all the things I did better in my next businesses.
Here’s what I think about franchising:
1. I personally think franchising is a great option because you just follow a system that has been done already. Less mistakes, less hassle. There will be people who will be willing to assist you and want nothing but your success. However….
2. Operation isn’t the only part of business. There is accounting, marketing, management, etc. If you think franchising will make you rich, then think again. This isn’t a magic lamp. You still need to work hard at making it work successfully.
3. The major issue about franchising is that you pay upfront for a name — their name. You haven’t done anything and yet you have spent half of your capital already. Money you could have used for operations. (But then again we pay for convenience and support.)
4. If you decide on going with franchising make sure you choose a reputable company. Ask for others’ experiences regarding this franchise. Your sales agent will tell you all the good things but you should know the struggles as well. They won’t tell you that! So go and do your homework. Ask those who franchised with them!
5. The reason we didn’t last with our franchising business was because we had the money to start the business but we didn’t have the money to maintain it. Our capital ran out and there was no choice but to close it down.
6. I do recommend franchising but I still highly encourage you start a business that is in line with your expertise. There is nothing more fulfilling than finding and pursuing your real passion.
So what do you think? Is franchising a yay or nay?
Do you have experience with franchising? What tips do you have?
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