Franchising an established business is a good way to be your own boss. Other than never having to answer to anyone again, aspiring entrepreneurs buy a Burger King or a Signarama franchise for sale for many other reasons. They are usually not required to have previous business experience and love to skip the full-blown marketing campaign necessary to promote a new start-up.
However, investing in a franchise isn’t all roses. While putting your money on an established brand can minimise business risk, it doesn’t guarantee anything either. If you want to take this route, debunk these popular misconceptions:
It Would Smooth Sailing
Owning a business with known branding still takes hard work. You need to put a tremendous amount of time and energy to ensure everything is in order. As a small business owner, you should wear many hats and learn how to micromanage since you’re the most important decision-maker. Despite the winning formula you inherit from buying a franchise, you must know how to overcome challenges because they would come.
It Would Be Profitable
Franchising an established business make it easier to attract customers and generate sales, but lean times are inevitable. Customers trust the brands they know, but repeat orders won’t happen unless the first experience was satisfactory. Even if you lure new customers, you can’t grow your business if you keep losing the old ones.
It Would Be Cost-Effective
Buying a franchise can save you money because of the few risks involved, but expect to spend more financial resources down the road if you mismanage it. Your coffers would go empty at some point if more money goes out than what comes in.
Franchising a popular brand shortens the path to success, but an established business process alone won’t take you to the promise land. Whatever brand you choose, you should be a hands-on entrepreneur from the get-go and adapt to changes to survive a volatile business environment.