• 6 Common Small Business Mistakes to Avoid as a New Franchisee

    As an aspiring entrepreneur, purchasing a franchise can be a great alternative to starting a business from scratch. Becoming a franchisee offers the opportunity to own a business with a proven track record and established brand recognition. However, like with any business, franchise owners can make a number of mistakes that limit their success. In this article, we discuss some of the most common small business mistakes to avoid as the new owner of a franchise.


    Not Working with a Mentor


    While a franchise will come with a proven business model, every franchise operates differently and faces unique challenges. A business mentor will help you find ways to tackle the issues that come with running a small business, like managing a team, dealing with workplace conflict, and balancing your work and home life. Your mentor will also provide insights into day-to-day business operations and help you avoid mistakes often made by first-time entrepreneurs. Finally, working with a mentor can help you build confidence in your ability to run a successful business.


    Wasting Valuable Customer Data


    Your customer data is one of your most valuable assets. Don’t waste it! Many business owners overlook the value of customer data because they don’t understand how to use it effectively. But by analyzing customer data, you’ll be able to identify customer trends, preferences, and behaviors that can help you improve your products or services and increase customer retention. 


    A customer data platform (CDP) makes it easier to manage and analyze your customer data so you can get the most out of it. A CDP provides you with a unified view of your customers to help you gain deeper insights into who they are, what they want, and how you can best target them with your marketing. Look for a CDP with real-time customer profiles so you can deliver personalized content at scale.


    Overlooking the Value of Technology


    As a franchisee, failing to leverage technology can be a costly mistake. Relying solely on manual processes can hinder the growth and profitability of your small business in a world where every other business relies on technology. By embracing reliable tech tools such as inventory management software, project management platforms, cybersecurity protections, and more, you can streamline your operations, reduce costs, and improve overall efficiency. You should be able to find an app or website to improve nearly every aspect of your business. This will help you stay competitive and relevant in a rapidly-evolving marketplace.


    Not Digitizing Business Documents


    Digitizing business documents as PDFs can have many benefits for both physical and digital document management processes. Firstly, digitizing paper documents helps to eliminate the burden of physical storage, reducing the cost and space it occupies. Digitized files can also quickly be backed up and protected from disaster or mishandling compared to paper documents, making it easy to recover data or information when data loss or accidental deletion occurs. Use Adobe Acrobat’s PDF editing tools to easily modify and update text, tables, and images in your PDF files to improve productivity and collaboration as well as streamline your operations. 


    Poor Management Practices


    It’s not uncommon for someone to purchase a franchise with little to no management experience. Unfortunately, poor management practices can lead to decreased productivity, high employee turnover, reduced customer satisfaction, and even more serious consequences like legal issues and financial losses. MinutemanPressFranchise.com stresses the importance of following the proven management system established by the franchiser. Use their programs, product offerings, and employee training procedures. You’ll also have to get comfortable delegating work to employees and trusting that your team will perform well without micromanagement.


    Failing to Engage with the Community


    New franchise owners often believe they don’t have to spend time on community engagement because the brand is already established and recognizable. However, community involvement is important for local brand awareness, building trust in local shoppers, and forming a positive reputation for your particular store. To engage with the community, FranchiseWire.com suggests donating to nonprofits, sponsoring community events, or holding your own fundraisers.


    Don’t make the same mistakes as all the other franchisees that came before you. Take proactive steps to avoid setbacks, like using technology to streamline business management and manage documents, leveraging a customer data platform to improve your marketing results, and working with a mentor who understands the intricacies of entrepreneurship.

    Join the Addison County Chamber of Commerce to get the resources you need to build a winning business in our community!