Finally putting up a business and seeing it turn into reality is probably one of the most exciting events in an entrepreneur’s life. It starts with a feasible idea, verifying it into the intended demographics, obtaining the resources to put up a place, and voila! You’re on your way to earn big time.
Whether you came up with an original service or product line, obtaining a contract for a restaurant franchise, or just posting commission-based products or services online, as long as you avoid some red flags, you can be sure to have a profitable and sustainable enterprise.
Speaking of which, we’ll focus on the aspect of making a restaurant franchise a big hit in your local area. In research conducted by Ohio States University, a staggering 60% of restaurants fail in their first year. If you don’t want all of your investments to be washed away, here are some of the things you need to consider before making that big jump.
Location Matters
The good thing about the franchising industry is that it evaluates the area for a great location to where the restaurant will be established. The number one reason businesses fail is that their location has poor visibility, limited foot traffic, and worse, no parking areas.
Uninvolved owners
What owners fail to see is the fact that they still need to participate and delve into the affairs of their business. Simply because you hired a manager to do all tasks for you doesn’t mean you can leave your post and go off your merry way. As the owner, you still have to look for ways to expand your business horizon and how to make your enterprise more profitable.
Mismanagement
Yes, managers do have the skill to manage and supervise an enterprise but, even the most reliable person can be exhausted, get sick, and be emotionally distraught. These managers are only human beings and most of the time, they can forget their priorities in the celebration of the most trivial things.
Poor customer service delivery
What turns people off from patronizing a restaurant may not be the food itself, but the customer service. Word of mouth can spread like wildfire and with the intervention of technology, a single bad review can make you lose not only one customer, but many other potential ones.
No marketing or advertising efforts
Other business owners or would-be franchisees would think that since they are operating under a favorite brand, spending on marketing ploys and advertisements aren’t necessary.
That line of thinking is wrong. Although you are bringing in an all-time favorite to the area, you still have to print flyers, conduct an opening ceremony with fun activities wherein the whole community can enjoy, and tour around the local town in a parade. These are all necessary, especially when a business is just starting.
Many people believe that running a business is just investing some money, running around the shop, and whatnot, but it isn’t. It involves a lot of planning, goal-setting, following through, and measuring your day-to-day success. At the same time, you have to possess the most crucial skills to pull through the toughest times and continue striving until better days are here again.
