Franchise business or franchise is a business that interests many people, especially beginners who want to learn to do business. Why are those who are aiming at this business, mostly beginners? One reason is that it’s easy to run, not only that, this type of business is also easier to promote because, on average, there are already many people who hear it.
In general, this Franchise business may look easy. A beginner in this field of business only needs to determine, which franchise will be chosen, then start investing in the business, and just waiting for profits to come to him. If you want to try this franchise business, of course, you have to be careful when you have to invest in this type of business, especially if the funds for investment come from loan funds or joint ventures that will have more responsibility in the future because they must be replaced.
If that happens, then to invest your money in this franchise business, you must be more careful, because not a few beginners who invest all their money in the franchise business but not long after losing.
This happens because beginners who make these decisions make decisions too quickly and do not take into account the worst risks that might occur suddenly.
A franchise is not limited to some physical product or some kind of restaurant. Nowadays you can also buy a franchise for online gambling products, such as sbobet judi bola. Basically you will buy a franchise of an online gambling company and become their subsidiary. Selling products which pretty much the same as the mother company.
Not only that, there are still many mistakes that are often made by franchise business people. So that something similar does not happen to you, here are 7 mistakes in running a franchise business that should be avoided:
# Do not have Operational Fund Support
Franchise businesses do not have the support of large operational funds. Funds owned by Franchise owners are usually in the form of funds from investors. The remaining funds obtained are funds from several Franchisors who participated in opening the franchise business. The error that occurred was the absence of special fund reserves that should be owned by a franchise owner for operational activities.
# Borrowing Money Without Thinking About Possible Profit and Loss of the Business
Most of them will borrow funds from certain parties and financial institutions. Because to run this franchise business requires large funds for business development. Not all franchise business owners have large amounts of funds in their pockets. But, what is feared is, when there is borrowing large amounts of funds from other parties, it turns out that the Franchise business is running at a loss. Surely this will be your big problem as the owner of this business.
# Incorrect Choosing a Business Partner
The next mistake that is often made by Franchisors or franchisees is that it is inappropriate to choose a business partner. It would help if you chose a business partner who has experience in the same field, or at least your business partner must understand the Franchise line of business that is being run, along with the risks. So when something unexpected happens, the partner can help solve our problems, instead of adding to the problems in a business that is run, or even leaving us when there are problems in the business being run.
# Not Enough Franchise Business Experience
This is also very important in starting a Franchise business. You should ask a lot of questions from mentors, or people who first run this kind of business and are successful and successful. The lack of experience related to this business can also make this business bland and may not last long. Take lessons from mentors. Usually, they will provide very good input to run.