Test Your Idea
Before you take out a restaurant loan or throw down the cash to buy this franchise, make sure you do exhaustive marketing research and talk with industry insiders in order to ensure that this is the right decision. In the early stages of launching a company, everything seems perfect. It is easy to see the world through rose-colored glasses and to think that wild success is only a few months away. However, there has never been a time when you needed to be more objective in your judgment and reasoning. Therefore, consult with others. Share your business plan and idea with successful entrepreneurs and business owners. If you get a steady stream of negative feedback, with most people believing you will not make money, then you need to seriously reconsider the idea.
Hope for the Best, Plan for the Worst
Cash is the lifeblood of any company. If you run out of it, your business will fail. If you have cash, your business will be open tomorrow. Most new entrepreneurs and business owners do not understand the gravity of this simple truth. You always want to keep a positive, upbeat attitude in your day-to-day running of the franchise, but always plan for the worst. Hope for the best, plan for the worst.
In the beginning stages, it is imperative to keep expenses as low as possible. Never make large purchases based on the assumption of future revenue. That sends your company’s financial health into a very risky position.
At the beginning, plan out exactly how long you can personally survive and pay bills personally and in the business, without any revenue. If you are only giving yourself a few weeks, then think again! You should be able to personally live with no income for 6-12 months, at least. Make sure you have a plan in place for how you will personally deal with that. If you take out a restaurant loan or similar small business loan, that can help with living expenses in the early stages of the company.
Choosing Partners
If you take on capable partners in the early stage of your franchise launch, you will be significantly increasing the amount of work that can be done. This will oftentimes also significantly cut down on the amount of stress you feel on a day-to-day basis since you have a partner to share the stress with. The downside here, of course, is that you will most likely be giving up some equity in order to secure a partner with no promise of pay. Choose wisely. This decision can never be reversed. That is important to understand.
Starting a new franchise is an exciting opportunity. Make sure you plan well in every regard, and remember that hard work plus dedication and planning is an incredibly powerful combination.
