A recent well known franchise market report suggested that 97% of franchisees are making a profit which is all very good, probably not accurate but all very good. However there is a problem that haunts the franchise industry because of statistics like this. Would be franchise owners can be lulled into a false sense of security thinking that the mere act of purchasing a franchise results in a healthy profit. Despite what the remarkable % above suggests this is most definitely not the case.
If you are considering acquiring joining the hoards of franchise investors it is important that you and all franchise investors play devils advocate either with yourself or get someone else to question your next move. Do you really have what it takes to replicate the franchise being offered? Do you have sufficient money to tide you over until your new franchise is on it’s feet and making a profit? Do you have a satisfactory commercial opportunity in the location you are considering operating from? There are dozens of questions you need to ask yourself, so take off your rose coloured glasses for a moment and be true to yourself.
Franchise Investors require dedication, talent and money. If you put in part time effort you’ll get part time reward, if you join acquire a sales based franchise and you are a shrinking violet you’ll fail and if you don’t have enough capital including a rainy day fund then you’ll probably run out of money and that won’t be a good thing.
The best advice we can give you is to ensure that you take some of your skill set with you into your next business, what is it about YOU that will enable you to do well with your chosen franchise? If you’re a chirpy enthusiast then you’ll do well in a sales role, if you’re an analytical financial boffin you won’t.
Take a moment to check some options at www.franchiselife.co.uk