Common Pitfalls To Avoid In Franchising
January 11th 2007 09:18
In today's world, you hear everyday stories of bankruptcy or failure of different businesses, and the usual reasons are mismanagement, lack of technical know-how, the non-viability of the products or services offered, wrong site, tough competition and a lot more. And the usual justification is that business is a gamble.
Franchising is a business , a business investment that offers guarantee. Franchise popularity is founded in a reliable vividly written operating manuals, sound operating systems, well developed high standard quality of products and services, proven sales and marketing strategies, site selection techniques, established name or trademark developed and harnessed by franchise experts to ensure success. In the absence of any of the above mentioned important factors of a franchise, think again.
Franchising is a long term business relationship. It requires time and effort, thinking and evaluation especially when it involved significant cash. It would be a big tragedy if you happen to fall in the bait of fly by night or unscrupulous franchisors. The common pitfalls of franchise buyers are lack of knowledge in evaluating good franchises that suit them and buying small so-called franchise businesses with no proven track records but with low capital investment.
A test of the franchiseability of a business is on the success of it's system and operations. A business becomes franchiseable if and only the success of the operations can be duplicated or replicated. Hence, it follows that newly established business that is operating in less than a year or two would hardly make a good franchise. A proven track record of established business systems and operations is what count most in a franchise.
Avoid pitfalls in franchising. Veer away from pseudo-franchise. Do not be sorry later, learn more about ifranchising now.
Franchising is a business , a business investment that offers guarantee. Franchise popularity is founded in a reliable vividly written operating manuals, sound operating systems, well developed high standard quality of products and services, proven sales and marketing strategies, site selection techniques, established name or trademark developed and harnessed by franchise experts to ensure success. In the absence of any of the above mentioned important factors of a franchise, think again.
Franchising is a long term business relationship. It requires time and effort, thinking and evaluation especially when it involved significant cash. It would be a big tragedy if you happen to fall in the bait of fly by night or unscrupulous franchisors. The common pitfalls of franchise buyers are lack of knowledge in evaluating good franchises that suit them and buying small so-called franchise businesses with no proven track records but with low capital investment.
A test of the franchiseability of a business is on the success of it's system and operations. A business becomes franchiseable if and only the success of the operations can be duplicated or replicated. Hence, it follows that newly established business that is operating in less than a year or two would hardly make a good franchise. A proven track record of established business systems and operations is what count most in a franchise.
Avoid pitfalls in franchising. Veer away from pseudo-franchise. Do not be sorry later, learn more about ifranchising now.
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