A lot of people dream of starting their own business at some point or the other but continuos uncertainty in the market or the idea of creating the optimal product mix may be a difficult challenge. That’s why experts and many seasoned entrepreneurs favour franchising over starting your own business from scratch. But franchising, like any other business venture, requires commitment, determination, hard work and skill. With the right mindset, a franchisee can successfully own and run a franchise outlet. A franchisee must not only be aware of the legal aspects but also of company practices, products, people management, etc. Below we listed the top three most popular fears that prospective, mostly first-time, franchisees continue to face and what you should do to allay them.
Three Fears You Could have about Franchising
“What if I fail?”
Everyone is aware of the famous quote by artist Erin Hanson – “What if I fall? Oh, but my darling, what if you fly?” Self-doubt, fear and other uncertainties could easily fill your mind when you step out to do something out-of-the-box, such a starting a business with franchising.
You might feel overwhelmed with negative thoughts and even consider giving up, but do not let fear take over. Franchise business is based on a successful business model that’s helped many franchisees succeed in the past. Therefore, as opposed to a start-up company plan, the risks of its collapse are significantly fewer. Even if failure is not 100% imminent, you can make things work for yourself by putting your best efforts. There might be a lot of people who do not invest in any business idea just because they do not want to face personal failure or embarrassment. However, this fear of the unknown might lead to a lifetime of resentment. So, put your doubts aside, improve your self-confidence and take the plunge.
“I might not make enough money.”
Just like any other business venture, franchising too cannot guarantee that you will earn too much money too fast. However, with franchising, you have many avenues to find out whether a franchise is expected to reap any benefits in future and if so how soon would that happen. For example, you can do your research well in advance, talk to the franchisor and clear out all your doubts. Or, you could visit existing franchisees and get information about their financing and earnings. We also recommend creating your financial plan before buying a franchise. Take help of a financial expert and determine how much personal money you can invest, what are the expected expenses for running the said franchise, how long does it take to break even, etc. All these factors will help you draw a clearer picture and boost your confidence while starting your own franchise business.
“I don’t want to let my family down.”
Many of us are obligated to look after the financial as well as the emotional well-being of other family members owing to the close-knit family system in India. In such scenarios, your decision to quit your job and start a new business venture could disrupt your relationships. However, you must understand that starting a business requires a lot of compromises – such as extended working hours and investment of money – and it’s natural for everyone who’s dependent on you to be worried. If like many other prospective franchisees, you too are concerned about your family, here is what you need to do: communicate. This will not only help them understand your aspirations but also set their standards of expectations right. Preparing your family members, especially those who are dependent on you, can help them understand how crucial starting your own business is to you. The more cogently you share your plans and dreams, the more help as well as emotional support they might be ready to extend.
In order to start your own business franchise and run it successfully, make sure you let go of your fears first. Of course, every business venture involves risks but with franchising these risks become calculated. Hence, there are fewer chances that they might not work. While we recommend acknowledging these fears and understanding their root, we’d also like to emphasise that these fears will vanish only when you start working on them. Start gaining as much knowledge as you can about shortlisted franchisors, talk to as many franchisees as you can and get started on this amazing journey. Good luck!