Hotline: 1800 102 2007
X
Loading
Search Business Opportunities

Bitter failure can lead to sweet success

It is possible to taste success after failure. Many first time franchisees fail in their ventures and consider themselves inefficient businessmen. But one must not lose heart so soon. Let us have an insight into this view

By Abha Garyali Sub Editor

With the growing popularity of the concept of franchising, more and more entrepreneurs are jumping in to try out this profitable venture. However, success cannot be guaranteed in any business venture and same is the case with franchising. Many aspirants enter into this domain with high expectations to make it big. But, their hopes shatter soon as they face the reality. Such failure can be due to high maintenance cost and no profits, lack of general business skills or little or no emotional support at home. After their failed venture, franchisees often blame the franchise concept as well as consider themselves incapable and inefficient of running a business. They quit from the franchising arena with this incapability within their conscience.

Reasons for failure

The causes for the failing of any business can be many, but one must have the courage to see this as just another turning point in the business.

Ineffective franchisors: A franchisees is successful with a feasible franchise system. Many a times, a franchisor might not provide the required support and training to the franchisees. Thus, leaving the franchisee completely shattered and helpless.

Inappropriate location: An apt location in accordance with the business concept is of prime importance. Many a times, a franchisee fails only because of an inappropriate location.

Market diffusion: Competition is fierce in franchising. The market may become saturated with businesses in your industry. Thus, failure to move out to a different area or buying a franchise altogether in a different industry may lead to failure.

Wrong choice of the industry: A wrong choice of industry can lead a franchisee to failure. Passion is the ultimate way to success. An entrepreneur must be passionate about his/her area of interest.

Inefficient competence: Every franchising venture seldom guarantees success. One must have the competence to handle the franchising venture with ease. Therefore, inefficient strategic skills lead a franchisee to failure.

Over expectation: Many franchisees fail only because of unrealistic expectations about the franchise ownership. You cannot build a castle in a day. Like any other business, it requires hard work, patience and dedication.

Unsuccessful franchisees should always remember that there are lessons to be learnt in failures. It is well known fact that failure teaches us more than success. This article is particularly for those entrepreneurs who jumped into the franchising arena but soon opted out of it keeping their failure in mind. In stead of running away from failures, it is always advisable to fight and overcome your weaknesses. All those franchisees who have failed in their venture and are on the verge of quitting should keep in mind the following points:

Failure is the best teacher

A failed franchise can make the franchisee rich by providing the real-market data and managerial experience that is unavailable in any MBA classroom. You as a franchisee must study and understand what your weak points were that failed your outlet. Ask yourself, ‘What are the areas, where did I go wrong, and how can I improve’. Whether there was a weakness in managing the outlet or was it the business concept that did not attract customers, can determine the success of your future ventures. Improving on past business decisions and deciding which tasks you excel at and which you are better in delegating can also help you in the future.

Keep your mistakes in mind: A smart franchisee is one who learns from his mistakes instead of repeating them. While starting anew it is a must not to make similar mistakes. Select the concept, franchisor and the employees with caution as these are most important in the success of any business.

Setting low targets: Failed franchisees must have realised that aiming too high in the initial stages is not a good idea. Always set small achievable targets rather than big targets that can bring in frustration and failure.

Keep daily expenses apart: Agreed that you must have lost money in your previous franchised outlet but investing all your finances in taking up another franchise is not advisable. It is always recommended to keep your business and personal life separate. Similarly, divide your business finances and home investments according to the need of your family. Risking your family finances in setting up any business tends to be frustrating. More so if the business does not work profitably.

Failed or failing franchisees should always strive hard to make their business work. Franchisees instead of blaming themselves and the concept, should utilise time in researching for better business deals when their first venture was unable to bring them profits. Apart from this always remember that the past failures are stepping stones for the future success.

Comment
M. Sureshkumar 25, Dec 2009 at 07:28 AM
Hi, iam interested to know more about franchisee offer in travel & tours industry
Lakshmikanth T 27, Dec 2009 at 04:40 AM
Thank you very for nice article, i am intrested in travel agency. If any oppurtunity kindly let me know.
Simon Varghese 28, Dec 2009 at 06:55 PM
Yes I think it is good to have a Travel Franchise. I'mfrom the same industry with 17+ years exerience and quite a good no.of clients in hand I'm looking for a Franchise support or a branch. my e-mail - simoo_05@yahoo.co.in
Brigil 17, Jan 2010 at 03:02 AM
Hi I am intrested in travel agency. If any oppurtunity kindly let me know.
karan 29, Nov 2010 at 09:41 PM
i would be extremely interest in a franchise of a well established travel agency with good support system.
parimalraj 04, Jan 2011 at 07:09 PM
i want to take Franchise
parimalraj 04, Jan 2011 at 07:38 PM
HI I WANT TO TAKE THE FRANCHISE..LET ME KNOW THE PROCEDURE..
albert 25, Feb 2011 at 09:47 PM
Hi, i am interested to know more about franchisee offer in travel & tours industry
muhobbat singh 13, Mar 2011 at 08:28 PM
i want trevel agency in surat guarat
kwsrangjohn 14, Mar 2011 at 05:24 PM
hello, i am interested to know more aboutfranchisee offer in travel & tours industry.
RANJEET CHOWDHARY 30, May 2011 at 03:56 AM
Hello , I am interested to know more kindly provide me more information
Mansoor 02, Oct 2011 at 02:26 PM
Hello, For your kind information i am in the same line , hence i want to know more about franchinsee offer in travel and tours industry and i want to setup airline office from my residence,hope tohear a favourable reply.
nirmal singh 12, Apr 2012 at 05:09 PM
i am intersted to know more about franchisee offer in travel &tour
rehan 15, Mar 2014 at 01:52 PM
hi i am rehan i am running my own travel agency i am intrested in your business plz mail me further information ............
Related opportunities
  • About:Founded by Mr. Prashant Kumar & Mr. Himanshu Kansal in..
    Locations looking for expansion New Delhi
    Establishment year 2014
    Franchising Launch Date 2016
    Investment size Rs. 5lac - 10lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater South Delhi New Delhi
  • Multi Cuisine Restaurant
    Thadiwala™ the name which reflects the meaning of Dream, Passion,..
    Locations looking for expansion Rajasthan
    Establishment year 2012
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 300 - 500 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Jaipur Rajasthan
  • About:Fading the perception of burger being a junk food and..
    Locations looking for expansion Karnataka
    Establishment year 2000
    Franchising Launch Date 2016
    Investment size Rs. 20lac - 30lac
    Space required 250 - 2000 Sq.ft
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Urban District Karnataka
  • Ice creams & Yogurt Parlors
    About:Gelato Italiano is one of the pioneer brands of Gelatos..
    Locations looking for expansion Maharashtra
    Establishment year 2000
    Franchising Launch Date 2017
    Investment size Rs. 5lac - 10lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Mumbai City Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories