When diving into the franchising world, there’s a common misconception that because you’re backed by an established name, you’re set up for automatic success.
But as with any business venture, success doesn’t come without its own set of challenges.
When we started our first franchise years ago, we made plenty of mistakes. Since then, we’ve seen the same mistakes crop up time and again for both first-time and seasoned franchise owners.
Below are some of the most common missteps franchise owners make and the key takeaways to ensure you avoid them!
Mistake #1: Resisting the Proven Model
One of the primary errors we’ve seen (and yes, I’ll admit we were guilty of this too!) is the temptation to change the established model. When you buy a franchise, it’s natural to believe you have a fresher or more efficient way of doing things.
A close friend, for instance, took on a painting franchise. While the business model never required him to pick up a brush, he decided he would paint alongside his employees. In essence, he was so engrossed in the details that he lost sight of the bigger picture.
Key Takeaway: When you purchase a franchise, remember that you’re not just buying the right to ‘do the work.’ You’re investing in a proven model to work on the business. Your primary role? Being the visionary, driving growth, and overseeing the holistic functioning of the franchise.
Mistake #2: Isolating Yourself
Another frequent mistake is self-isolation. Understandably, every business owner encounters moments of doubt. However, instead of leveraging the extensive support network that franchising offers, many choose to battle challenges alone. The franchise system, with its mastermind groups, coaching sessions, and peer support, is specifically designed to provide solutions.
In our early days with our painting franchise, we forged a bond with another franchisee from the Northwest. I (Mack) even invited the business owners to Tennessee to stay at our house!
(Sharon reminded me that, while they were sweet people, we weren’t running a hotel for other franchisees.)
This bond turned into a friendly rivalry that propelled both our businesses forward. It wasn’t just the competition; it was the human connection, the mutual support, and the shared experiences that became invaluable.
Key Takeaway: Make connections and share experiences. By visiting other franchises and inviting them to see yours, you foster a culture of learning and collaboration. But, maybe don’t do what I did and turn your home into a makeshift motel for visiting franchisees – always remember to maintain some boundaries!
Mistake #3: Overlooking Financials
This one is particularly easy to fall into. The day-to-day operations of your business can become overwhelming, making administrative tasks, especially financial ones, seem tedious. It’s all too easy to hop on that hamster wheel of being “too busy” and neglect the essential duty of updating and monitoring your financial data.
However, that data is your business’s heartbeat. Ignoring it is like trying to stay healthy without ever checking your vitals.
Whether you find the process exciting or not, regular financial check-ins are non-negotiable. And if you’re genuinely averse to it? Plan for it. Allocate some budget to hire someone or carve out dedicated time in your day for this critical task.
Key Takeaway: While administrative tasks might not be the most exhilarating part of your day, they are foundational. Consistent financial tracking ensures your business remains viable and healthy.
Final Thoughts
Franchising offers a fantastic avenue for entrepreneurs to establish and grow businesses. But remember, it’s not an automatic ticket to success. By avoiding these common mistakes and utilizing the resources at your disposal, you’ll be better positioned for sustained success and growth.
Ready To Explore Franchising? Let’s Talk!
These days, Sharon and I are on a mission as Franchise Consultants to help others go from “Start” to “Success” when it comes to franchise ownership.
If you’re curious about exploring franchising as a career pivot, investment vehicle or lucrative side hustle, let’s talk!
You can book a free, no obligation call with Mack here and/or a free call with Sharon here.
As Franchise Consultants, there’s no fee for our services.
Rather, our role is to serve as a trusted guide and educational resource, and we’re compensated by franchisors only if and when you decide to move forward with (and are approved for) franchise ownership.
Lastly, you can learn more about our story and how YOU can follow in our footsteps via the Franchise Together Podcast here: https://franchise-together.onpodium.co
We look forward to connecting with you soon!