In 2017, there were over 700,000 franchise businesses in the United States. The industry also produced an output of approximately $713.2 billion and provided 7.88 million jobs for people in the country. With these figures, some people might think that it’s a great idea to purchase their own franchise business. However, not everyone will achieve success in this industry, especially if they don’t have any idea how to run the business.
There are various studies which revealed that having a franchise is 90% more likely to become successful compared to starting a new business. However, a separate study revealed that franchises only have 65.3% survival rate compared to 73.1% of new businesses. These results lead to constant confusion among those who are planning to dive into franchising. If you are one of those who want to franchise, you need to take note of the following details:
Reminders for Potential Franchise Owners
So, you have already started checking out cleaning franchise opportunities or dreaming about being a fast-food franchise owner. How can you ensure that your business will succeed? Here are a few pointers:
- Do not expect immediate return-of-investment—Some individuals are too focused on the returns. Because of this, they tend to forget other important aspects of the business. When this happens, the success of the business can be compromised. If you don’t monitor your growth or your customer’s feedback, there will be no assurance that you can continue running the business. Make sure that you understand that there is no guarantee when you will get your capital back. There is also no assurance that you will have a constant income from it. Ensure that you have done all the necessary preparations and improvements before you expect to generate money from your franchise.
- Choose a brand that you personally trust—When choosing a particular franchise, ensure that you personally trust that brand. Take note that it’s not all about the brand’s popularity or how the company has already established a name for years. What matters is that you believe in the products or services that the brand offers to its clients. If you don’t trust their brand, you can’t expect your business to achieve success. You will find it difficult to convince people to purchase your products because customers might feel like you are insincere when selling the products or offering the services. Give 100% of your trust to your brand. If you can’t do that, you might need to consider something else.
- Learn about the process of running the business—Make sure that you learn all the details about the franchise. How much is the franchise fee? Are there some requirements that you need to submit? Make sure to get some answers about all the processes, including business operations, marketing strategies, support and more.
Before you decide on getting a franchise, make sure that you take note of the abovementioned reminders. Keep in mind that your franchise is just like any other business. You need to put a lot of your time, effort and energy if you want it to be successful. Don’t forget to reach out to your franchisor if you need assistance or have further questions in running your new franchise.