Pitfalls to Avoid When You Open a New Franchise Business

When a budding entrepreneur finally takes that momentous step and opens their franchise, it can be anexciting and rewarding time. But as anyone who has ever been a beginner at anything will tell you,newness and mistakes can often go hand in hand. While it is normal and to be expected that there willbe some trial and error during the early days of your franchise ownership, there are a few commonpitfalls that new franchise business owners often fall into. Fortunately, knowing what they are ahead oftime makes them easier to avoid.

The following are three of the most common pitfalls for new franchise owners along with some tips onhow to avoid them.

Pitfall #1: Underestimating how much time is involved

Many people will start a business with the dream of not having to “punch a clock”, but what they maynot realize is that – especially in the beginning – new franchise owners will often need to put in manylong hours of hard work in order to see their new franchise thrive.

This is especially the case for franchisees in an owner/operator model, but even franchisees with a semi-absentee model can be prone to underestimating the time commitment.

In order to avoid this pitfall yourself, ask as many questions as you can during your training and try tooverestimate the amount of time needed instead of underestimating it. If you are allowed to do so,spend a day with another franchisee to see how much time is truly involved.

Pitfall #2: Getting discouraged early on

Starting your own franchise business is hard work, and often customers don’t simply flock to thebusiness like you hoped they would. You might have to spend more time and money than anticipatedgetting out into the community and making contacts. It might take some patience and persistencebefore you see your business become profitable.

To keep from getting discouraged in these early stages, make sure you have a sufficient financial cushionto tide you over until your business starts to turn a profit. It’s a good idea to have an emergency fund inplace of amount three to six months’ worth of expenses.

Pitfall #3 – Ignoring the advice of your franchisor and fellow franchisees

While your franchisor will set many standards that you will be obligated to follow, they are also likely toprovide support in a number of areas. Smart franchisees are those who listen to their franchisors.

Since your franchisor is well experienced in helping new franchisees succeed, they know a lot aboutwhat works and what doesn’t. It’s also in their best interest to see you do well. Listening to andfollowing this advice can save you a lot of hassle down the road.

In addition to your franchisor, you will also have an entire network of fellow franchisees who havealready been where you are now. Don’t be afraid to reach out to them for advice as well.

As a new franchise business owner, you are going to make mistakes. The important thing is that youdon’t let these mistakes completely derail your business or your confidence. Learn from them, correctthem, and move on.

About FranNet of Texas

The FranNet team of franchise consultants in Texas is comprised of cross-industry experts willing toshare their collective wisdom about franchise ownership. Our team at FranNet Texas is committed tohelping our clients define success, working to find franchises that fit them, and helping them do the rightresearch to make their best decision. We guide prospective business owners towards pertinentinformation about the best franchises to own in Texas based on their skills, strategies, criteria andbudgets and provide support along the research path. For more details visit –http://franchisingtexas.com/