Franchises are surrounded by all kinds of myths and rumors. In this blog, we'll go over some of the most common ones and explain how they relate to staffing franchises in particular. The goal is to give you a better understanding of what it takes to buy a franchise, regardless if the myths themselves are positive or negative.
You need to love the industry
There are plenty of successful franchisees, businesses, organizations, and institutions that are run by people who find passion elsewhere. There's no requirement to love a particular industry. As long as you work hard, build relationships, and learn over time, you can buy and run a successful staffing agency.
You'll intuitively know when it's right to buy a franchise
No matter what your gut is currently telling you, we politely ask you to ignore it. Starting a staffing agency is a major decision, so don't approach it the same way you decide where you're going out for dinner.
Do the research, study the industry, and crunch the numbers. Rely on quantitative measures and try to base your decision on facts as much as possible.
You have to immediately give up your job
Buying a staffing franchise is a time-consuming endeavor, but there's no rule that you have to give up your job to do so. Many franchisees are able to efficiently allocate the start-up work so you can keep your job while going through the initial stages. Consider what role you'll have in the business before you hand in your two weeks notice. Do your start-up work at night and on the weekends.
You must recognize the franchise name
People tend to overestimate the value of a franchise's name. Without any extra information, there's no reason to believe the buying a McDonald's franchise will be more profitable than buying one with a company you've never heard of before. Past performance, future economic outlook, and your personal effort are more important than name recognition.
Although franchises come with a set of rules, their amount and scope often exaggerated by outsiders. Beyond the basic framework of the business, the franchisee is in control. They run the business, deal with employees, and has the final say regarding most day-to-day operations.
You can't afford to buy a franchise
Financing a franchise is similar to financing a house or even a car. No one is expecting you to have the given amount of money in cash. If the interest is there and you have decent credit, then financing won't likely be a major issue. There are plenty of options to help potential franchisees get started if they have a good business plan.
There's no room for creativity
This myth is similar to the limited freedom one. As a franchisee and boss, you'll have a lot of creativity in terms of running your business. How you deal with employees, boost productivity, and maximize profits are all opportunities for you to stretch your creative muscles.
All you have to do is turn the proverbial key
We've noticed that some people interested in buying a franchise are enamored with the idea that as long as they invest the money, they won't have to do any real work. Running a franchise, however, requires its due amount of planning, deliberation, and stress. Prospective franchisees should be aware of that.
Franchises can't fail
Yes, when you buy a franchise, you're not completely on your own as if you created a startup. But there's always a chance of failure, no matter what statistic you've read online.
As always, we encourage prospective franchisees to do their research and stay on top of their finances. If you're ever lost, then just ask for help. We can't guarantee that you'll never fail, but we can try to steer you in the right direction.
To talk more about staffing franchises, or anything else, contact us today.
To learn more about our particular staffing franchise opportunity. Click below to watch a quick overview.