A high diving board in summer always seemed higher when you were the kid bouncing up and down at the end of that slender plank. Suddenly, the water looked far, far away. You shivered, despite the summer heat, as you heard your peers egging you on. You knew it was now or never: You jumped off into thin air with eyes squinted and heart thumping.
That’s about the same level of fear that every new franchisee has with that first establishment.
And if that establishment is a large franchise, chances are that its operation — like that pool from the high dive –appears tmuch smaller from the outside than it actually is.
Yet even intrepid entrepreneurs are sometimes shocked by the intricacies of the day-to-day details involving in running such an operation. Still, plenty are taking the plunge, nevertheless. According to the International Franchise Association, 2017, by year’s end, should see a 5.2 percent growth in franchising, totaling $426 billion in revenue.
Why are so many people who have never before owned or operated a franchise or even worked at one throwing themselves off the high dive? It’s the old story of reward versus risk: The bigger the risk, the bigger the reward. Of course, the trick here is to avoid an embarrassing belly flop, and instead to cut cleanly into welcoming waters with a satisfying splash.
Fear of franchising? You’re not alone.
Location. Staffing. Training. Inventory. Complex transactional software: They’re all part of the job.
As a franchisee, you’re on the hook for everything, from the amount of toilet paper you buy for the restroom to the signage displayed on your building. The position requires serious decision-making and time; no wonder it’s a scary prospect. Survival isn’t guaranteed, but then again, nothing is in business — except quarterly taxes.
Other concerns of new franchise owners come in the form of legal issues, namely liability. What if someone gets hurt? It happens every day in companies of all shapes and sizes. A real estate franchise is no less susceptible to personal injury suits than a gym or a barbershop.
Related: How Do I Start a Franchise?
Then, there are the people working at the franchise who will operate the business and manage it from a high level. Hiring them will be a challenge. You not only have to vet the individuals you interview, but find them first — and we all know how tough it can be to dig up raw or top talent.
Given these challenges, it’s easy to see why franchising leaves some entrepreneurs shaking in their boots. Yet each of these overwhelming worries can be mitigated when purchasing and running a large franchise. Here’s how:
1. Hire someone with management or operations experience.