The operation mode of joining the chain stores avoids the trouble that investors can't find entrepreneurial projects and some troubles that individuals often encounter when starting their own businesses. This is indeed a shortcut to success. According to a survey, 80% of independent shopkeepers in Japan's retail industry closed down in the first year, and only 8% can persist until the fifth year; However, in the first year, only 20% of the chain stores were eliminated, and 77% of the chain stores can successfully operate until the fifth year. The comparison between the two proves that joining is more stable and reliable and more cost-effective than starting your own business.
At present, various projects in franchise chain emerge one after another. "Invest 5,000 yuan to be a boss easily", "Surprise projects earn 1000 yuan a day" and "Join us with an annual salary of one million yuan" ... Faced with such attractive advertising words, many people are eager to try, holding thousands, tens of thousands or even millions of funds, and want to join the ranks of franchise chains.
However, joining the chain is not as simple as people think. In the world of franchise chain, there are both the myth of profit and the tragedy of total loss. Therefore, in order to become the beneficiary of franchise chain, investors need to be fully prepared. Otherwise, blindly follow the trend, and finally you can only beat your chest and cry, and everything will be of no help.
In order to avoid the recurrence of the tragedy, first of all, the UK-China Entrepreneurship Lab reminds investors to pay attention to eliminating the following three major misunderstandings:
Anyone can open a franchise store.
Many people think that opening a franchise store does not require high academic qualifications and IQ of investors, and it is suitable for anyone. In fact, opening a franchise store has certain requirements for investors' character, ability and experience. For example, the need for a rational personality, good interpersonal skills and management skills, these factors largely determine whether investors can succeed.
Therefore, investors should ask themselves a few questions before joining: whether they have the passion to start a business, whether they have the potential to start a business, whether they are good at cooperating with others, and whether they have enough understanding of the business of joining the chain.
(2) once and for all investment
Some investors think that after joining, they can lie down and do nothing, and everything will be managed by the headquarters, just waiting for them to enjoy their success. In fact, this kind of thing is impossible.
What the headquarters can provide to franchisees is only a set of franchise operation mode. Franchisees can only succeed if they follow the experience and guidance provided by franchisees and implement them step by step. In other words, franchisees need to work together with the * * * of the headquarters if they want to succeed. Otherwise, even if the headquarters is trying to play the role of guidance and supervision, and the franchisees themselves do not make corresponding investment, then they will only stand in the queue of losers in the end.
(3) businesses that break even.
Franchisees inherit the mature business model and enjoy centralized procurement, centralized publicity, professional guidance and other services, which will undoubtedly help to improve the success rate of entrepreneurship. But benefits and risks always coexist, and there is no absolute guarantee that you will only make money and not lose money. Therefore, entrepreneurs should treat joining rationally and have certain risk awareness and psychological endurance.
After eliminating the above misunderstandings, in order to ensure the success of the franchise chain, the UK-China Entrepreneurship Laboratory reminds investors of the following matters based on empirical research and analysis.
(1) Plan well before investing.
Investors who are interested in joining the chain industry, no matter which industry they choose, no matter what kind of projects they do, must carry out in a planned way. How much money to invest, how much income to expect each month, how much profit, how much net profit, when to recover all the investment and so on. These problems should be planned in advance, and the more detailed the better. We should do what we can, and we can't decide the size of the investment by the size of the prospect, so that the investment is beyond our affordability. There are many things just in case, and once it fails, there will be no reserve force to make a comeback.
(2) Carefully choose to join the industry.
Unlimited market and limited business opportunities. In recent years, many popular chain industries have appeared, but many industries soon disappeared.
Therefore, when choosing to join the industry, we must carefully evaluate whether the industry we want to join has good development prospects. If this industry is in the growth stage, it means that there are not many competitors at present, and the whole market has a lot of room for growth in the future. The earlier you invest, the more likely you are to make a profit, the richer your accumulated experience and the higher your chances of making money. Investors must carefully consider and measure risks if they want to join industries that have entered a competitive period and have too many projects. In this industry, not only the competition between brands is fierce, but also the competition in the same business circle is in full swing. The good position has long been preempted by the franchisees who joined first. It will be more difficult to operate if you want to join now.
At the same time, different industries have different market characteristics and operation modes. If investors have a certain understanding of the market space and operation mode of the region to be joined, as well as the market appeal of mature joining brands, they will be like a duck to water. Therefore, when investors choose to join the project, they should have a concept suitable for each other and try to choose their own familiar industries and fields. Under certain conditions, you can choose to enter the industry with high barriers, which can greatly reduce the competition within the industry.
(3) Join the localization survey of the industry
The choice of franchise chain industry needs a lot of local market research, analyzing the local development of this industry, whether it is compatible, the relevant situation of existing franchisees, site selection and other practical problems, so don't blindly start.
Ms. Liu is a franchisee of a children's wear brand in Shenzhen, and the franchisee is in Beijing. When I bought winter clothes, I received autumn clothes series, which could not adapt to the coming cold weather in Beijing at all. Only after asking did I know that the clothing of the headquarters was designed according to the weather conditions in Shenzhen. Obviously, Ms. Liu's compatibility analysis is not detailed enough.
Mr. Wang was very moved when he saw an advertisement of a cleaning company in a magazine. After analyzing the current local meeting, he thought it was a good opportunity to join the cleaning company. After a phone call, I rushed in after listening to the exciting explanation from the other party. It was not until he began to look for customers that he found that there were several local cleaning companies with strong financial strength, which already had a good market share, but the operating conditions of their franchise stores could not be opened.
The above cases are heartbreaking. If we had done more research, we wouldn't have ended up in such a bleak ending.
(4) Carefully choose brands to join.
We must be careful about the choice of joining brands. If you just see the attractive conditions and beautiful company catalogue in the advertisement, you will often regret joining in a hurry.
Generally speaking, the more competitive a chain brand is, the more perfect its franchise system, the stronger its financial resources and strength, and the better its development prospects, so it is more capable of ensuring the profits of franchisees.
Choosing a weak brand to join the headquarters can reduce the joining fee and deposit, but in contrast, you can enjoy less resources and help from the headquarters; So many things are managed by franchisees themselves, and their competitiveness is naturally weak. At the same time, due to the low joining fee, the number of franchisees often increases sharply, resulting in malicious competition among franchisees.
(5) Have a good eye and sign a contract.
Signing a contract is also a stage that franchisees can't ignore.
In the franchise chain, the contract is an important document to solve the possible disputes between the two parties in the future. Therefore, be sure to read carefully the contents of the actual contract you will sign, and carefully check the corresponding terms and points, especially about the franchise fee and the relevant constraints of the headquarters on the franchise stores. Don't rush to sign this contract.
The UK-China Entrepreneurship Lab reminds entrepreneurs that franchise chain is a highly competitive and potential business model, which may be a "Qian Jing" and a "trap". The so-called success is also Xiao He, failure is also Xiao He, countless and unpredictable, all of which require investors to be fully prepared.
Source: lighting network