Before investing in your franchise in India, learn how you can keep your franchise on track.
It is exciting to sign up to a franchise. But, it is important to learn that not every franchise investment proves to be successful. Sometimes franchisees also fail in their business and that is never expected.
So, it is important to learn that what causes franchise failures and how one can stay on track. Here we are listing a few of the most common reasons.
- Ego And Pride
A franchisee aims to achieve success (and the franchisor also wants the same) but things don’t always go as planned. When you are all set to experience success, it can be difficult to admit to the world that the plan has not worked as expected. Franchisees can feel embarrassed about not meeting the benchmarks, and no one likes to be told that they are not doing things in the right manner. It is vital to be ready to listen and take advice.
- The Sales And Marketing Gap
Surely, your franchisor will present you with marketing tools, probably even with a national campaign that will improve the brand. But getting the sales is up to you. Too much dependence on marketing can indicate towards the neglected practical part of sales.
New franchisees need to improve their selling skills. They should considering going through sales training courses specific for their business.
- Doing “Irrational Things”
So, the business has started paying dividends and now you are planning to buy a new home or a luxurious car? Well, beware, because overspending during plenty can backfire. The business becomes harder with additional financial burden, thus it is important for franchisees to plan for their upcoming financial commitments in advance.
- Poor Understanding Of Finances
Let us consider the monetary aspect; this is one of most important reasons for being in business but still usually it is misunderstood. It is common for many franchisees to be unaware of the terms and language mentioned by franchisors and accountant, but they don’t accept the same. So, that is a major hurdle to open communication.
Franchisors might give a toolkit for understanding the figures, but some franchises fail to use it the same way- which means the expected figures will be different. There can be disconnect between the numbers on the screen and on the page.
In such instances, the best option is to outsource services of an accountant who specialized in franchisees and go by their expert advice.
- Things Change
No matter how determined you are at the starting of your new business, and even if you are committed to follow the process, it is unavoidable that things will change. Communication is important here- are you and the franchisor on the same page? If there is a different between your understandings, chances are there will be misunderstanding sooner or later.
For Business Opportunities and Franchises in India, feel free to contact Businesssaathi.