Many people dream of being their own boss someday, but are afraid of the risks involved. We know that it is impossible to take all the risk out of going into business. In many cases franchising provides a way to minimize the risk, but it can never remove all of it.
Franchising methods can be quite complicated, and certainly anyone looking into a franchise quickly learns that there are a large number of factors to be considered.
Again and again, I’ve seen people ignore the important warning signs and make Costly Mistakes when buying a franchise. They fall into the same traps that have victimized others before them. As they say, what we don’t learn from history, we are doomed to repeat!
I have compiled a list of “10 Costly Mistakes to Avoid When Buying a Franchise”, you can get a FREE Copy emailed to you at: Franchise Perfection
Costly Mistake #9 Not writing a business plan.
An essential part of any franchise business is its plan for success. The word “plan” comes from the Latin planum, meaning to lay a foundation or groundwork. Your business plan lays the foundation for your new franchise.
Formulating a strategic business plan for your franchise is the first step to success.
Remember the famous saying: “Always plan ahead. It wasn’t raining when Noah built the ark.” The discipline of developing a franchise business plan lets you look at the challenges ahead and your expectations for your new business. This involves looking at your business ideas and financial needs as well as your marketing and management plans.
One of the advantages in developing a franchise business plan is that a good deal of the information is provided by the franchisor. Much of the financial information is available in the UFOC.
Make sure you consider your strategy for investing, including the entry strategy, a long-term strategy, and an exit strategy. Does the business fit your personal strategy for growth and success?
There are no guarantees that your plans will actually play out. But making the effort to think about and develop a business plan puts you in the driver’s seat. You will have thought through almost all of the potential issues and either revised your plan or outlined contingencies. You will also have a clear idea of the costs and benefits involved, including the costs of not proceeding.
Simply put, many people do not take the time to really understand what they’re trying to achieve when they invest in a business, and consequently, they are never satisfied with the results.
When you’re planning, be conservative. If there are going to be surprises, let them be pleasant ones.
If you know in your heart that you can do what it takes to make a business succeed no matter how challenging it is, then you are well on your way towards success.
To see the complete list of: “10 Costly Mistakes to Avoid When Buying a Franchise” click here!