Starting a new business is a tricky undertaking, even for experienced entrepreneurs. There is a seemingly endless number of factors to consider and, if you are someone with no prior business experience, this may seem overwhelming and completely discouraging. This is one of the reasons why many budding entrepreneurs set their heart on franchise opportunities: they get an established and recognized brand, operational and marketing support, and, as a fringe benefit, an elevated feeling of confidence. But even then, it’s not all peaches and roses, and new franchisees often make mistakes that could easily be avoided. Let’s take a look at five of them.
5 Mistakes Commonly Made by New Franchisees
Underestimating the amount of work required
Possibly the most common and the most success-threatening misconception about business is that you’ll be working less than before. In fact, you are now in charge of a small empire that needs guidance and administration in every faraway region. Your guidance and administration. That means you have to be involved in every process that’s currently happening, or will happen in the future, work after hours or with no schedule whatsoever, make difficult decisions quickly, and take risks. You have to wear a lot of hats, and the work never really ends. If you truly want to be on top, this will have to become your new comfort zone.
Not listening to the franchisor
As mentioned above, franchise opportunities have a number of advantages compared to starting your own business from scratch. Whether out of a need for support or the fact that the franchisor’s concept resonates with their own ideas of a perfect business, a new franchisee chooses to become a franchisor’s partner and take on their brand, philosophy, and standards. These are the result of experience, hard work, and mistakes - made and learned from. Use it wisely! And if you have your own ideas on how to make things better, communicate with your franchisor. Algorithmics, for instance, offers you a professional business mentor who will always hear you out and help. With such support, you’ll most definitely find the best solution and make your great ideas come true.
Not investing in marketing
You could be selling the most amazing product on the market, or providing the best service, but, without the right marketing strategy, no one will ever know about it. Marketing is a whole different science, with its own laws and formulas, that takes a long time to learn. In the beginning, this should be one of your priorities if you want to hit the ground running. Franchisors like Algorithmics know how big a difference good marketing techniques make, and that’s why we offer our partners solid solutions, guidance, and templates so they can focus on lead generation and not worry about content. You could outsource this task to a professional marketing agency or do it on your own, but it’s crucial to understand its importance and consider it in your budget.
Not using tools for analytics and client management
Remember how we said you’re now the leader of an empire? Your CRM and other analytical instruments will become your empire’s historians. Yes, it may seem time-consuming and just plain unnecessary in the beginning, but, as time goes by, you’ll see how much it’ll help you to manage your entire business with nearly no effort. Here you’ll be tracking all your payments and attendances, have a history of communications with every client, and see pretty much everything that’s going on with your business. Apart from the numbers and figures that’ll provide very important statistics, it’ll also help you distinguish patterns in your clients’ behavior, let you know when and whom you need to call or send an invitation to, and find other quicker and easier solutions to retain and attract more loyal customers.
Being passive and pessimistic
It’s true that entrepreneurship isn’t for everyone, but it’s definitely not for those who are prone to negativity bias. You’ll have your ups and downs every step of the way, but the true entrepreneurs always have faith in what they do and make sure they get back on their feet after each failure until they finally set their position in concrete. It’s an exciting adventure, but occasional failures are a part of it, and you have to make peace with them. Treat them like a challenge you need to overcome in order to become stronger, and, above all, don’t forget to have fun.
Always keep in mind your sense of purpose. It’s important that the concept of your business is in tune with your personal beliefs: if you believe you’re doing something meaningful, and that you’re making this world a better place, no unfortunate circumstances will get you off the road.