The five biggest franchise mistakes that can lead to a failure
Under the glossy, glamorizing positive focus on the positive sides of franchise most of the times it’s negative aspects are either not looked into or are simply ignored. As a result many people go into the business without knowing the all-round elements resulting into a sure loss even before they have really started. Most of the time as there is no boss to call upon you as starters you may end up avoiding compact working hours being the owner and the boss yourself. So you need to discipline yourself to work independently at the same time strictly. You should maintain a homogenous work schedule, should read educational materials to strengthen your knowledge and capabilities. Those of you come from a corporate background have the habit of working for 8 hours and then just putting their work away. But when you run your own business you usually have to work more hours and even if necessary work on weekends. Lots of people have unrealistic expectations regarding the funds required to start the business but the franchiser will review your financial qualifications under the evaluation of a questionnaire before they send you any further information. If you lack the necessary start-up fund and can’t come up with adequate financing you may receive a letter explaining that you are financially unqualified. Franchises never provide direct financing. Most of the entrepreneurs wrongly assume that the SBA will provide 100% financing based on their good ideas but if you are without any financing that reflects on your poor management of the finance which the SBA take into consideration. You only qualify financially when you provide 50-60% of the initial investment yourself which you can draw from a home equity loan which are easier to pay back.
