Looking for a franchise business to join?
Franchising may be one of the safest and most convenient ways of throwing yourself into entrepreneurship for the first time. It allows you to be your own boss but with the support and guidance of others who have been in your shoes, thus lowering the risk of failure.
That said, no business venture is completely risk-free.
In this blog post, we deep-dive into some of the most common mistakes and pitfalls to avoid when first starting out in your new home-building business.
1. Not doing proper research
Deciding on joining a franchise is a big decision, and you must pick the right business and franchisor to work with to increase your chances of success. The best way to do that? Research! Compare your prospective businesses against each other and meet with the franchisor to get answers to your questions. Ask questions such as:
- How well is the business doing?
- Is it a profitable option in your area?
- What investment is required to get started?
- What’s the company culture like?
You should do your research with diligence and not rush your decision. Once you are satisfied with what the franchisor is telling you, it is time to meet with other franchisees.
2. Not talking to other franchisees
If you want to find out what it’s like working for a company just talking to the franchisor won’t do, you will want to hear it straight from the horse’s mouth.
Consulting the people that have been standing where you are right now will be invaluable in making your decision. No one can give you better advice than the people who are already in the business. It may even be a good idea to look up some old (disgruntled) franchisees to get the full picture. You can rest assured they will tell you if there is anything to worry about within the business. Their first-hand experience will allow them to give you all the information you need before investing yourself.
3. Not following the franchise business model
It’s important to understand how franchising differs from starting an independent business; that there is a “price to pay” when using a proven business model and getting instant brand recognition. You will be restricted in the way you do business under the brand. It may not suit everybody and it’s a business decision that should not be taken lightly.
As the franchise is already a functioning business run by experienced people, following the procedures and using the knowledge of the franchise are crucial factors in determining how successful you will be. Deviating too much from the business model and its practises will most likely have negative consequences, not only for your individual business but for the entire corporation.
4. Not creating & following a business plan
Although the franchisor has an overarching business plan, you cannot rely on that solely for your own franchise – your local market in Queensland is likely to differ widely from a market in Victoria or South Australia.
Each franchise owner needs to study their local market and tailor the business plan according to their territory. This is usually where consulting your area manager comes in handy – a person who has long-term knowledge and experience with the target market in your area.
Together you need to make sure your plan is realistic and based on the research you’ve conducted, as well as that it suits both your future and more immediate goals.
5. Not investing enough in marketing
One of the biggest advantages to joining a franchise is that there’s no need to fight obscurity; you get to work under a well-known and respected brand from day dot. However, this alone does NOT mean you will be instantly successful.
Starting your franchise-building business, you will need capital to put towards marketing efforts locally (the advertising fee paid to the franchisor does not cover local marketing.) You have to have a rigorous campaign planned to reach your local segment through a host of different mediums, including email marketing, social media marketing, radio and in-store promotions.
So, these are the things NOT to do if you want to become a successful franchise entrepreneur. If you would like to find out if franchising is for you, read our blog post: 10 Things to Consider Before Buying a Franchise
Want to join Stroud Homes?
When you decide to start a business on your own, there are a lot of unknowns. By joining a team like Stroud Homes, you’ve got the benefit of all the other experienced builders in the group. you will have like-minded business owners dealing with the same constraints that you face every day that you speak with, meet with, and bounce ideas off daily.
Take a look around the information on our website and gain some insights into what it is like to be a franchisee, what we are looking for in a successful franchise owner and our selection process. For more detailed information please enquire today to receive the full Franchise Information Pack.