Business ownership can be more challenging than franchisees expect. But with the right preparation, you can avoid these common issues and build a profitable, successful business.
Some franchisees mistakenly believe that launching a franchised business is easy, since they will have the backing and support of their franchisor. The truth is, while the franchisor will already have established processes, procedures, materials, and products available, it’s still up to the franchisee to build a successful business using those tools.
Profitable businesses aren’t built overnight, and they aren’t definitely aren’t built without a lot of hard work. Franchisees that expect smooth sailing with minimal effort on their part usually experience quite a rude awakening and are forced to scramble to come up with a plan to develop a stable business.
Problems hiring and keeping quality staff
The job market ebbs and flows, and sometimes there just isn’t enough talent to go around. But in some cases, franchisees seem to have difficulty finding and retaining good staff members no matter what the economy looks like. But as Marcus Buckingham said, “People leave managers, not companies.”
Most of the time, the franchisee isn’t maliciously trying to be a bad manager or business owner — they simply don’t have management or leadership experience and are unaware of where they’re going wrong. But regardless, a high turnover rate, especially in a location or industry with a limited talent pool, doesn’t usually result in a successful business.
Lack of funds
It’s a common misconception that buying into a franchise will always be cheaper than starting an independent business. While the upfront costs are generally more affordable, franchisees don’t always take into account the ongoing expenses and end up with little to no room in the budget for marketing, expansion, or upgrades.
These long-term costs include things like royalty fees, marketing fees, rent, payroll, and other operational expenses. New businesses are often in the red for anywhere from a few months to a few years, and when franchisees don’t plan for these ongoing expenses, they can end up running out of money before they ever become profitable.
Frustration with limited autonomy
Many people invest in a franchise because they’re tired of working for someone else and want the opportunity to be their own boss, but they don’t consider the authority that their franchisor will have over their business. It varies by company, but franchisors typically dictate the business’s:
- Minimum level of performance
- Products or services
- Branding and advertising
- Reporting requirements
- Processes and procedures
Some franchisees become frustrated by the lack of full control over their own business, which can lead to poor performance, conflicts with their franchisor, and resentment on both sides.
How to avoid common franchisee challenges
If you’re considering franchise ownership and want to avoid these pitfalls, here’s how you can set yourself up for success.
Do your research
The majority of challenges that franchisees face come from a lack of knowledge. Before signing a contract, do as much research as you can on the franchisor so you understand exactly what you’re in for. Ask questions, talk to other franchise owners, comb through reports, and make sure you have a clear picture of what franchise ownership will look like for you — physically, mentally, and financially.
Develop a comprehensive plan
A solid plan is key when it comes to starting any new business. Your franchisor will have a master plan for you to follow, but you should also have a detailed personal plan laid out that covers every aspect of your operations and ownership for at least the first year. But once you’re off the ground, if something’s not working, have some flexibility and adjust the plan if needed.
Keep the lines of communication open with everyone involved in your business — including your employees, your franchisor, and your investors. Don’t be afraid to reach out to your franchisor for questions, help, and support. They want you to succeed. Likewise, a good boss is one who genuinely listens to and communicates with their employees and strives to help them succeed as well.
Recognize your weaknesses
Finally, learn to recognize and accept your shortcomings — and then do something to fix them. If you don’t have a strong business background, take some online courses in business management. If leadership is not your strong suit, reach out to that great boss you had and ask for advice. Take action, and don’t let your weaknesses hold you back from becoming a successful business owner.
Invest in a quality franchise
The right franchisor can make all the difference. And if you’re looking for a franchisor that supports their franchisees and gives them all the tools they need to succeed, Right Hand Senior Care would love to hear from you. Our franchise opportunities allow you to build your own profitable, stable business, while making a real difference in your community.
So what are you waiting for? Get in touch today and change your future with a Right Hand Senior Care franchise.