Franchise Article

Starting your own business is an incredible opportunity. It is a chance to be your own boss, to spend more time doing the things you love, to increase your income and earning potential, and to escape from the corporate "rat race". There are a few common pitfalls that first time business owners typically do not see coming, so in an effort to let you learn from the mistakes of others, here are seven common mistakes made by business owners when starting a new business or franchise.

1. Mismatched Branding

Your customers and clients want dependability and familiarity, and while the offer of a new product or service is exciting and motivating, consistency is the key when you are trying to build a brand. Choose a logo, design, webpage, and overall brand that will encompass your entire business, not something that will need to be updated and changed every time a new service or product is unveiled. Many franchise opportunities have a logo or product with an established reputation, so stick with the established brand rather than feeling like you need to redesign everything to make it personable. Let your product and the way you run your business be personable, let the branding be familiar and consistent.

2. Straying From The Business Plan

Setting goals, deadlines, key result areas, tasks, and target dates is critical to the success of your business. The mistake that many franchise owners and small business owners make is forgetting that they spent hours crafting and studying a business plan, and once the business is up and running they just "wing it." There was a reason you started your business opportunity or franchise, you had a plan that was going to make your new business a success. Follow it. Chart it. Pull out that goals worksheet, that business model, that marketing plan and calendar those goals and dates in a place where you will see it and work toward it. If you are a franchisee, keep in mind that the business plan created for you by the franchisor was crafted in a way that has been proven successful for them in the past, so sticking as closely to it as possible is your best chance for success.

3. Overestimating Revenue and Profits.

Optimism is often what keeps a franchises for sale; many opportunities to go into business for yourself, but that does not mean that every opportunity is the right one for you. Before purchasing a franchise or small business it is important to know that there will be a considerable amount of time, money, and passion required to make your business a success. Particularly if you are starting a small business to experience the joy and freedom that comes from doing what you want to do, make sure that the franchise you purchase will really allow you to do what you want to do. Just because a home service franchise that provides lawn care and landscaping offers the right financing, in the right area, for the right price, does not necessarily mean that you will naturally be successful or satisfied running that business (especially if you have outdoor allergies). Passion and appreciation for a business is critical in making it a success. If the business you really want costs a little more or requires a relocation, it is worth evaluating and waiting until the time is right to run the business that will be a good fit for you as an owner.

5. Steering Clear of New Technology

It is a digital world, and especially with small business and franchises, websites and email services are critical to running a successful and credible business. Some business owners, while having an extremely good business sense and management style, have a limited capacity for technical knowledge. There are many small business opportunities that provide web design, IT services, and a wide range of technological support to small businesses, and by utilizing these services, you can focus on the strengths you bring to your small business and at the same time provide the type of technological support and web content that your customers and clients expect from a serious business.

6. Running Your Business in Total Isolation

While you may wish to escape the corporate world by starting your own business or franchise, trying to operate a business completely isolated from other business and networks is a sure fire way to run your business into the ground. The whole idea of businesses and cities is for individuals to provide a specialty product or good as a part of a larger city-wide or even world-wide offering. It is important for any business to understand the importance of a good network of helpful and relevant business partners. If you provide a property services business that assists people in acquiring or selling property, having relationships with inspectors, home service and repair technicians, and even financial institutions can only help your business succeed. Not only will you be able to provide a greater service to your customers, by recommending trustworthy business partners, you will also receive free advertising and referrals from a network of businesses with customers that need your services. Good networking relationships with other business owners can be the deciding factor in whether your business start-up or franchise succeeds or fails.

7. Letting Too Many Outside Sources Determine How You Run Your Business

While this seems a little contrary to the existence of this article, the simple fact is that, while information is abundant, ultimately it is up to you to run your business in the way that you are comfortable and capable to run it effectively. Often it is said that the three most important factors in creating a successful business are character, competency, and chemistry. While competency can be bolstered by research and advice from others, ultimately it comes down to the character of the business owner in sticking to their business model and working hard, combined with the chemistry to work well with employees and business contacts. Nothing ruins a business faster than indecisiveness from a leader. Receiving input and advice from experts is a great way to get ideas and a good start it the right direction, however, at the end of the day you must evaluate everything you read and listen to through the lens of your business style and experience.

You are accountable for your business' successes and failures, it does not fall on the authors of the books you read or the people in your life who offer business tips and advice. Make sure that suggestions and information make sense to you and your business. There is no automatic formula for success; there are plans and tips that help, but no guarantees. Work hard at being innovative; by pioneering new ways of doing business, you give yourself the best chance for success.