Very often potential franchisees tend to get excited over the latest new franchise opportunity - without any thought about whether it is the best business model, the right return-on-investment, or whether it means them working ‘in’ the business or not. Leading sales expert Andy Preston highlights the dangers of entering into a franchise opportunity without thoroughly investigating the vital element that will determine whether the business will be success – or a failure.
It is highly likely that a substantial percentage of people visiting franchise exhibitions are desperate for something to buy into to avoid them ever having to go to work for anyone else again. Many will be lined up to watch demonstrations of the latest cookery implement or aerobic craze and getting excited about being a franchisee and what kind of money they’ll be making in 2, 5, or 10 years time without any sort of plan on their part of how to get there - in fact many might not have even heard of the franchise before they walked into the exhibition hall earlier that day.
Andy Preston, a highly acclaimed sales trainer, founder of training company Outstanding Results (and former top sales performer within franchising) suggests that all too often potential franchisees get excited about the prospect of buying a ‘turn-key’ business that will bring them good revenue in years to come, without them having to work too hard.
In reality however, franchisees have to usually work very hard in the initial stages of a franchise to even survive, let alone make a healthy profit and with some franchisees spending up to £50,000 on a business opportunity, the most common mistake they make is their failure to consider how they are going to get a return on their initial investment, what it will mean in terms of further investment, time and many other factors.
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