ReadOns.com | Discover New Blogs Daily

9 common mistakes to avoid when launching a franchise

Turning a small business into a massive franchise is exciting for business owners. At the same time, there’s a lot to learn, especially if it’s their first time as a franchise owner. While it is a great way to start a business, it could be quite an investment, and simple errors could result in heavy losses. So, here are a few common mistakes business owners must avoid when running a franchise.

1. Not researching enough
Before taking up a franchise, business owners must conduct sufficient research. A lack of this could result in them entering a space they know nothing about. Most experienced entrepreneurs learn about an investment’s benefits and caveats before investing money in it. One should start with online research to identify the potential of a franchise. The individual could also visit franchise exhibitions and conventions and talk with existing franchises to better understand the business model. Other elements to consider include the franchise unit’s cost, support, and location.

2. Not having sufficient funds
Unless one has a good amount of wealth, one must secure financing to fund the new franchise. However, more than simply getting the funds is going to be required. One needs to ensure they secure financing to cover all the costs associated with the business chain. A few elements may include the startup costs and the expenses to run the business for at least one year. Those who go with a traditional bank loan will likely need to make a 30 percent down payment. Most entrepreneurs prefer a combination of a Small Business Administration (SBA) loan with a Rollover for Business Startups (ROBS), which opens up a range of other financial benefits. One should also remember that it may take a while before they start seeing a steady profit stream.

3. Wavering from the business plan
While entrepreneurs may start with a certain business plan, they may steer away from it rather quickly toward other aspirations. This could hurt the business model and consequently affect profits. One must ensure they stick to the business plan, especially if they join a franchise program, as this could help the venture become successful.

4. Not utilizing franchiser support
One of the biggest mistakes an aspiring entrepreneur can make is not utilizing franchisor support. Joining a franchisor program instead of going independent could help one get additional support and regular support around the year to launch their business. The franchisor will also have experience and insights into how an entrepreneur can run the franchise, which could prove highly useful in the long haul.

5. Franchising a business too early
Several entrepreneurs experience unimaginable success from their first business venture. This might drive them to franchise the business in a year or less. After all, the idea of running multiple locations instead of one could be attractive. However, franchising the business too soon is a common mistake and results in a loss. Expanding early on could also lead to one running out of business and needing to shut down the venture. An entrepreneur should wait until the business is operational for at least three years before considering franchising.

6. Not following guidelines
If one is working with a franchisor, they must follow guidelines. These rules and regulations are in place to ensure that the entrepreneur delivers quality products and services consistently so that the franchisor’s overall brand and image are protected. If one does not follow the rules, they might make mistakes that could affect the success of the particular unit and ultimately impact the overall brand.

7. Neglecting lawyer support
If an individual has never owned a business before and gets involved in a franchise without a lawyer, they might face various legal problems that are complex to deal with. Joining a franchise program requires a lot of learning. One will need to fill out multiple legal documents initially, so one should ensure one understands each clause thoroughly. With the help of a franchise lawyer, one could patch any loopholes that look problematic, such as those in the franchise disclosure document (FDD), which could ensure a smoother legal process throughout one’s entrepreneurial journey.

8. Not considering the exit terms
One might be excited about expanding their business, but they must also consider the exit terms. While the entrepreneur might not initially think of selling the franchise, not knowing if they can exit the franchise down the line could be a massive error. Selling a franchise is a complex process, and ignoring details upfront could lead to drastic drawbacks in the future. One must carefully read the exit terms and get them cross-checked by their franchise lawyer. The individual should also work with the franchiser on these terms and make changes if necessary.

9. Failing to address staff grievances
While the quality of the product offered by the franchise might be satisfactory, it isn’t always the primary business driver. The staff who work at various franchise outlets also play a crucial role in bringing in profits. For instance, some customers might revisit a store to purchase products or services because of the friendly and knowledgeable staff. Therefore, one should ensure they appreciate the staff, including incentivizing sales, offering bonuses, and other benefits to maintain their satisfaction levels during their tenure at the franchise.

Popular Reads

8 early arthritis signs one should not ignore

Living with arthritis can be a deeply uncomfortable experience. This is due to its myriad list of symptoms. Although there is no permanent cure for arthritis, healthcare professionals can work on a treatment plan for people to reduce pain and inflammation and improve their quality of life. To achieve those objectives, such professionals need to detect the earliest signs and symptoms of the condition. Here are some of the most common early arthritis signs: Morning stiffness Most people feel stiff in the morning when they wake up. This tightness is caused due to the overnight changing of lubrication in the joints and fascia. Another cause for morning stiffness is that the body’s natural Ibuprofen has not kicked in yet. However, this stiffness tends to go away when one moves and stretches out a little. Morning exercises are a great way to release this morning stiffness. In the case of arthritis, this stiffness and tightness simply do not go away. This happens because of the inherently deep nature of arthritis symptoms. Therefore, if an individual experiences stiffness for 30 to 45 minutes after waking up, it may be a sign of arthritis and should be checked by a medical professional. In fact, the stiffness does not occur only in the morning but also after one rests for a long time and then gets up from a comfortable position. This happens because the synovial fluid, a thick liquid found between one’s joints that reduces friction and joint damage, in one’s body becomes more gelatinous after a long period of inactivity. This is something that is caused by arthritis. Fatigue Arthritis has many subtypes, one of the most commonly found ones being rheumatoid arthritis, an autoimmune condition that causes widespread inflammation within the bones and joints in people. One of the common symptoms of this kind of arthritis is perpetual fatigue.

Poor blood circulation – Common signs and management tips

Blood circulation is one of the most important functions in the body, as vital organs depend on oxygen and nutrients supplied by the red blood cells to survive and function. However, certain factors like poor nutrition, underlying health issues, and unhealthy daily habits can reduce blood flow and disrupt circulation. So, here are a few common signs of poor blood circulation and useful tips for managing and overcoming the problem: Signs of poor blood circulation Visible swelling One of the first and most evident signs of poor blood circulation is swelling. Also referred to as edema, this swelling develops in the legs, feet, and ankles. Edema develops when the blood pools in one place instead of moving along the arteries and veins. Pooling causes the area to bulge. Edema is often noticeable along the extremities of the body. Due to the swelling, the skin around the affected area becomes taut and warm. Additionally, one might experience a sensation of heaviness and stiffness around the joints when affected by poor circulation. Numbness and tingling Blood circulation is a continuous process, with the heart pumping blood to reach all extremities of the body. So, any obstruction here can restrict the circulation resulting in a familiar tingling or sensation of numbness. Often, one experiences these sensations in the extremities of the hands and feet. The sensation may persist or flare up for short periods of time as the blood moves along veins and arteries. Many people compare this sensation to that of pricks caused by pins and needles. The severity of this symptom depends on how severely the circulation has been affected. Skin and hair problems The blood contains essential proteins that promote skin health and hair growth. Poor circulation deprives the skin of these essential nutrients and triggers visible changes in its color and texture.

9 common mistakes truck drivers should avoid

The freight industry is experiencing rapid growth. In today’s interconnected world, we rely heavily on trucks and trailers to transport a wide range of goods. However, driving a truck is not as simple as some may think. Whether you’re a rookie or a veteran truck driver, it’s important to exercise caution to avoid any accidents or mishaps when you are on the road. Here are 9 errors all truck drivers should avoid on the road: Crossing speed limits When transporting goods, it’s understandable to have a deadline to meet. However, unforeseen circumstances and road hazards may cause delays. It’s important to resist the urge to speed or exceed the recommended speed limit. According to truck driving laws in the country, a single axle can carry up to 20,000 lbs, while a tandem axle can carry up to 34,000 lbs. Carrying such a heavy load requires careful control, and overspeeding can lead to loss of control, risking your safety and that of others around you. It’s crucial to follow the recommended speed limit to avoid accidents that could slow you down even more. Sleep deprived riving Many truck drivers get paid by the hours they drive or the distance they cover. This can push drivers into driving for longer than recommended. According to Federal Law, truck drivers can drive up to 11 hours in a 14-hour shift, after which they must spend 10 consecutive hours away from the wheel. This leaves very little time for drivers to take care of their responsibilities and get the right amount of rest, causing them to feel drowsy behind the wheel. This may lead to: Challenged reflexes – When you’re drowsy, your reflexes slow down. This increases your response time to whatever may be happening on the road around you and increases the likelihood or severity of an accident.