Looking to buy a franchise? The chances of franchise success compared to an independent venture are enormously different. An article from the entrepreneur says that 90-95% of franchise businesses are successful, compared to only 15% of independent business endeavours.
But franchises can fail…even if it is only 5% of the time. Read below our top reasons for franchise failure and how to avoid them to make sure you don’t become the odd one out.
Failure to Follow Franchise Systems – When you buy a franchise you’re buying a proven business model. Not following the proven franchise systems and strategies can lead to failure. At Award Leisure, we provide a very clear and effective business plan which has been created using our 35 years in the leisure industry and proven success time after time opening up our other 6 showrooms across the UK.
Not Enough Working Capital – The most common misstep for any new business owner is to not have enough money to cover the needs of the business. This not only means to cover the initial start-up, but to cover the losses while the business grows. A safety net all entrepreneurs should follow is to allow yourself 10-15% more working capital than you initially expect. This way you will have no short comings and will be able to cover all bases in the beginning and throughout owning your franchise.
Lack of Marketing/Advertising – Spend money in the right places! The aim of any business is to attract and maintain a core foundation of consumers. To do this you must spend money on marketing. Advertise your business in the right places and the right way. If you don’t have the capabilities to do this then you need to make the decision to outsource. Award Leisure have a specialist in house team that can manage marketing campaigns, create artwork and oversee your website to make any changes you want.
Employing the Wrong Staff – Having an unmotivated and under performing workforce will drain any business. Ensuring you have a thorough screening process will help you make the right decision; this may include getting feedback from your franchisor to see if they think the person is the right fit for your business and the brand. A way to avoid this all together is to employ people you already know…family. As a family business Award Leisure promote and support their franchisees to operate in the same way. Trustworthy, motivated and ambitious employees are what’s needed to be successful, avoid the mystery and make the right choice.
Avoid these mistakes and you can be sure you won’t be one of the 5%.
Are you are interested in an exclusive retail franchise opportunity? You will be operating out of a luxury showroom filled with leisure products such as Hot Tubs, Swim Spas and lots more. Read through the below material to discover more!
https://www.awardleisurefranchise.co.uk/the-market.html – hot tub retail franchise market statistics
https://www.awardleisurefranchise.co.uk/case-study-01.html – buying a retail franchise case study
https://www.awardleisurefranchise.co.uk/franchise-model.html – award leisure hot tub retail franchise model
https://www.awardleisurefranchise.co.uk/contact.html – contact award leisure franchise for information on buying a retail franchise