Three Mistakes Beginning Franchisees Make That Are Dooming Their Business to Failure
Posted: Thu Jan 23, 2025 9:18 am
Below are some common mistakes that can be a costly lesson for an entrepreneur just starting out in a franchise business.
Ignoring market specifics
Any business is closely connected with the surrounding space, population and infrastructure. If the franchisee does not take into account the market conditions in which the organization will operate, then japan mobile phone numbers database even a good offer from the seller will not help.
An example is the running school "I Love Supersport". In Yekaterinburg it has been operating profitably for four years, while in Magnitogorsk it ceased operations after a year and a half. The main factor that led to the failure was the insufficient infrastructure for running in the city, which reduced interest in this sport.
Exaggerating the role of the franchisor in support
The franchisee, lacking sufficient knowledge about the business, relies on the partner's support, sometimes placing excessive expectations on him. For example, a newcomer has no experience in marketing and does not understand the importance of investing in attracting customers during the slow season. Hoping for support, he faces the lack of necessary guidance on attracting customers, which can lead to the loss of franchise business.
Ignoring market specifics
Any business is closely connected with the surrounding space, population and infrastructure. If the franchisee does not take into account the market conditions in which the organization will operate, then japan mobile phone numbers database even a good offer from the seller will not help.
An example is the running school "I Love Supersport". In Yekaterinburg it has been operating profitably for four years, while in Magnitogorsk it ceased operations after a year and a half. The main factor that led to the failure was the insufficient infrastructure for running in the city, which reduced interest in this sport.
Exaggerating the role of the franchisor in support
The franchisee, lacking sufficient knowledge about the business, relies on the partner's support, sometimes placing excessive expectations on him. For example, a newcomer has no experience in marketing and does not understand the importance of investing in attracting customers during the slow season. Hoping for support, he faces the lack of necessary guidance on attracting customers, which can lead to the loss of franchise business.