So you have decided that you want to be an Entrepreneur – awesome decision! You sit down and start conceptualizing your business model, possibility of different concepts; USP’s and quickly realize that this could take weeks if not months to solidify. So you decide that franchising might be a quicker option since it already has a proven business model and all the necessary systems are in place. You have confidence that the franchise business is lucrative, rewarding, and profitable, with a proven business model along with a loyal customer base – so all the effort is already done, right?
Wrong, wrong and so again wrong. While investing in a franchise does somewhat mitigate the risk for failure, gives you buying power, and support from your franchisor but it can never indicate success for your startup. So before you invest in a franchise, open your doors and lay out the welcome mat for your customers you should read these franchise myths to help ensure your attainment of your goals.
True to a point, but regardless of how strong the brand name is doesn’t alleviate the fact that you will have to worry about marketing and competition. As comforting as it is to know that the brand name will sell itself, your particular franchised location will require a comprehensive marketing strategy to attract and retain customer. I have witnessed franchises fail because they did not believe that marketing efforts were necessary. As a franchisee you are in competition with not just other brands but also other franchisees that have the same brand. To stand out you have to shine a light on yourself and make people see you.
Keep in mind that franchisors usually give generic advice. Unless a brand is already well established in the region that you are buying a franchise from chances are that any resources that the franchisor gives you need to be amended to your individual circumstances serving as an essential supplement to the franchisors guidelines. For example an operation manual generated for a market in the US cannot be utilized word for word for the Middle East market. Changes would have to occur in order for that operations manual to be effective. So the franchisor will probably provide you with all the materials and advise on how to open your business, additional resources are critical to ensure that your franchise launches successfully, and remains consistent during developmental and expansion stages.
You can have the best store front location or a location in every shopping mall but that does not mean that you can ignore the omnipotence of the internet search engines and the power of social media these days. It’s imperative that you deploy a digital media strategy and actively market your franchise. We all know McDonald’s and there is a McDonald’s a every corner but still in 2016 McDonald’s spent over $700 million on marketing.
Author: Haider Shah