Five common myths about opening a franchise business.
Starting your own business is a challenging and exciting endeavor, whether you begin from scratch or decide to open a franchise business. Each type of venture holds its own risks and benefits, but there are many common myths about starting a franchise that hold some potential franchisees back. You may be surprised to learn how a perceived disadvantage can actually benefit your business in the long run. Read on for the truth behind some of those misconceptions.
Myth #1: The location of your franchise is everything.
While it’s true that opening a business in a busy and thriving location can make it easier to get customers in the door, it’s always up to you to entice them to come back. Sometimes, a good location can make up for less than stellar business skills, but that’s not what builds long-term loyalty. High-quality products, excellent customer service and clever marketing are the pillars of successful business, regardless of where it is located. You may have to draw upon a little creativity, but there are many ways to entice your potential customers through the door no matter where you set up shop.
One possible advantage of a less-than-prime location is less expensive rent. Lower overhead costs could help your bottom line and allow you to invest in other ways to promote your business. There is no reason to believe your business is destined to fail based on location alone.
Myth #2: You need to be an expert in the franchise business you choose.
You do need to have a general understanding of the company and the products they offer before you open a franchise, but you don’t need to be an expert to begin. You will gain experience and knowledge through available training programs and while on the job. At the end of the day, you must be willing to always continue learning how to run and grow your business—period.
Take advantage of being part of a network that encourages you to draw from their existing expertise. When you start a franchise, you are given guidance for conducting day-to-day operations and have many resources of information. A good business plan and a yearning to succeed is more important than your formal education.
Myth #3: It’s more expensive to buy a franchise than start your own business.
While there is an initial franchise fee, consider the benefits you’re gaining from your investment. When joining a franchise network you receive existing brand equity that could take months or even years to build when you open your own business. That brand equity goes a long way towards getting customers into your business that much sooner. In addition, you’ll also receive guidance and marketing support. Opening a franchise is a great way to go into business for yourself, but not by yourself.
Myth #4: You have no control.
Franchising does require following a set of rules and regulations to ensure uniformity across all locations. But it’s still your business. You hire the staff, you set up the establishment, you create an atmosphere of success. While you must adhere to the franchisor’s guidelines, there is always room for creativity like planning your own customer loyalty events or creating an earning system to reward your hardest-working employees. Most franchisors give their franchisees some leeway to express their individuality and make the business their own.
Myth #5: Success is guaranteed.
Just because you are given a franchisor’s proven guidelines and tools to succeed, that doesn’t necessarily mean that you will. This is your business and success will depend on your efforts. Opening a franchise is a smart way to align with an established entity and build a business of your own, but it isn’t a short cut to avoid hard work. Like with any venture, there are outside forces beyond your control that may hurt your business. Although you’ll have support from your franchisor, starting a franchise isn’t risk-free.
Arm Yourself with Information
Franchising can be a great way to dive into business ownership, but it’s important to know the facts. There are a myriad of franchise opportunities available across an array of industries at varying price points. It’s critical to do your homework before signing on the dotted line. Being aware of these myths can help dispel some misconceptions about franchising and aid in finding the right success path for you.