When you have strong credit, your franchise's financial...
When you start something new, it's only natural to experience some trial and error. Making mistakes is a part of the learning process, and when you are a new franchisee in Canada, you can expect to make your share of errors. However, knowledge is power, and when you know the more common mistakes new franchisees make, you'll be more likely to avoid them.
Underestimating the time commitment
Many people consider owning their own business because they don't want to punch the clock anymore. Being an owner/operator requires long hours, however, particularly in the early phases of the business. Even when you're not busy with daily operations, you'll still have marketing, reading and training to do.
When you are going into a franchise business, keep in mind that it will involve hard work. If possible, spend some time with a current franchisee first so you can see what is required to make the business run properly.
Getting discouraged early on
Every successful franchise location you see once started as a fledgling business with a period of growing pains. It can take weeks or months before you see signs that your franchise is heading toward its true potential.
To avoid becoming discouraged early, have a set amount of working capital on hand before you start the franchise. When you set money aside so you can pay your bills and afford to live in the early stages of your franchise, you will reduce much of the stress that comes with starting a new business. There is no set dollar amount to aim for, but it is recommended that you save enough to cover at least six months of expenses.
Failing to follow the franchisor
As an entrepreneur, you want to be confident but not arrogant. Going into a franchise business thinking you know everything is a costly mistake to make. The guidance and advice from your franchisor can be incredibly helpful if you follow it. Keep in mind that your franchisor has already helped other franchisees become successful, and that they have more experience with the business model than you do.
Keep in mind that you will make some mistakes as a new franchisee, but beating yourself up over them won't help. The important thing here is to recognize and own your errors and take the steps you need to correct them.