Owning a franchise is easy – after all, you just have to follow a few steps and the business should run itself, right? Not always. Opening a business using a franchise business model presents many unique challenges, although the rewards can be incredibly impressive if you have the right tools.
To be successful with a franchise business, it’s important to discuss some common myths in this industry. By becoming familiar with these common franchising myths, you’ll be equipped to handle the challenges that owning your own business can present.
- Most newly opened franchises fail in their first year of operation. According to the latest statistics from the Small Business Association, most businesses survive their first year, though that first year can be full of challenges. In reality, less than 40% of businesses fail in their first two years, and approximately 50% fail in their first 5 years. The truth is that most businesses survive with proper planning, management, capital, experience, and mentoring.
- Your business’s physical property isn’t a priority. With payroll, advertising, inventory costs, and other expenses that factor into overhead, many business owners make the mistake of letting the condition of their property take a backseat. It is important to remember that your front door is often the first impression customers will get of your business, and that the cleanliness, maintenance, and overall image of the business will largely define the customer experience. Fortunately, there are allies like OpenWorks that are dedicated to cleaner, safer, and healthier work environments!
- The customer is always right. This is a tricky subject because the customer is often wrong. The secret is to make them think you think they’re right! In order to save money, increase efficiency, and prevent customers from taking advantage of you or your staff, it’s crucial to understand that this a myth. Of course, customers should always be treated with the utmost respect, even if they’re wrong!
- Franchising provides no freedom – it’s all corporate. This is one of the most common myths that discourages potential business owners from seeking out the opportunities franchising has to offer. While the corporation might dictate the basic system and framework, you are in charge of nearly every aspect beyond that. From advertising to hiring to managing your business, you are the boss. Fortunately, there’s help available so that the responsibilities of running your business aren’t breaking your back.
- It takes a lot of financing to start a business. While many franchise opportunities have basic financial requirements, the reality is that many businesses are funded on a limited budget and can survive for years with proper money management. The secret is to continue growing your inventory, services, and customer base by reinvesting your profits in the business.