Here's a list of 10 things to avoid AFTER you've bought a business. It should be a nice list to complement the '10 DUMB THINGS TO AVOID WHEN BUYING A BUSINESS' FranNet wrote about in a previous issue.

"Don't selectively implement the systems that a franchisor gives you. Use them all.".

So you actually did it! You overcame your fears and uncertainties and took the plunge and dove into the vast sea of business ownership. Congratulations! If you've chosen wisely you may well be on the road to financial and personal independence!

You're on your way now. No one can stop you! You've turned the corner from being reliant on a corporate paycheck, to self-reliance, true freedom and independence.

Slow down! You're not out of the woods yet. You can still make fatal errors even though you're part of a franchise system. Jeez...talk about being a wet blanket. Why must there always be cautions thrown in amongst the euphoric ecstasies that accompany starting a business? The simple answer to that question is that there are still some things you need to do to improve the likelihood that you'll be successful in your new business.

Here's a list of 10 things to avoid AFTER you've bought a business. It should be a nice list to complement the "10 DUMB THINGS TO AVOID WHEN BUYING A BUSINESS" we wrote about in the last issue.

Don't be the Franchisor:

If there is one thing that constantly amazes me it is the magical process that occurs for some franchisees the moment they sign their franchise agreement. As if magically transformed, franchisees think they have been invested with the wisdom of the ages once they have joined a franchise system. These franchisees seem to think that they know things that it took the franchisors years to learn. Don't do that to yourself! You will, over time, no doubt have insights that are of value to the franchisor, but at the beginning you should not worry about those things. You're going to have your hands full getting your business started. Stay focussed on the tasks that confront you, and try not to be swept up in the trap of thinking you're the franchisor. Don't try to create systems, and don't try to fix all the existing ones, you probably are missing some pieces of information that might influence your insights.

Don't try to be an expert on Site Selection:

There is an old cliché about the 3 most important things you need to succeed in the retail business...location, location, and location. You've heard it a million times, so don't ignore it. It's true. It can be absolutely true. When you buy a franchise, particularly one that is "site sensitive", the acquisition of a good site is critical to your ultimate success. If you wind up with a bad location, despite your hard work, there may be nothing that you can do that will turn a bad site into a good one. Hopefully, you have already factored the experience and success of the franchisor into your buying decision, and you have also been satisfied that your franchisor is astute at understanding the particular needs your franchise will have in terms of a location.

I'm not suggesting that you should not be involved in the site selection process. There are certain things that you will know about your local market that simply may not show up on a franchisor's demographics or other site selection information. Try to find a site that both you and your franchisor feel will be a good one. If your franchisor doesn't like a site that you have found, don't insist on taking it. Similarly, if you don't like a site that the franchisor has found, try to find one you both agree makes sense.

Don't try to save money by scrimping on opening advertising and marketing:

One thing that you can pretty well count on is that as you are building your business, you will start to become acutely aware of all of the costs that you pay to get your business launched. Whether a franchise is relatively expensive or inexpensive, it will likely still be expensive from your point of view.

As such, steel yourself and do the things that are considered necessary to start your business successfully. One expense that franchisees often seem to be tempted to "save money on" is marketing and advertising. That is precisely the wrong thing to do! In fact, it may be the single biggest mistake you can make. Advertising and marketing is what lets others know you are in business. It's not enough to put up a sign and hope that people will find you. Holding back on marketing and advertising could cause the thing that you most fear, namely business failure.

This seems to happen most frequently amongst people who are having a slower start up than they anticipated, or who have spent a lot of money already and are feeling the pinch. They start to get conservative and cautious. The end result can be that they create their own worst fear. Don't let it happen to you. Advertise and promote your business!

Don't try to be know-it-all:

Be willing to be a sponge, even if you are extremely bright and talented. Soak up all the knowledge that you can. If you already know something, it certainly won't hurt you to hear it again. Look for the pearls of wisdom that are liberally salted within the framework of virtually every successful franchisor.

Also, be receptive to input. You don't want the franchisor to feel that spending time with you is a waste of their time, either at start-up or in the future. Be someone that the franchisor looks forward to talking to. Remember that franchisors are subject to the same emotions as anyone else, and if you make it difficult for them to work with you, they will not be inclined to go the extra mile to help you.

Don't turn away help:

Again, a very important issue is pride and intelligence. Some franchisees feel that it is a sign of weakness to want lots of help from their franchisors. Many franchisees have had successful careers in corporate America and have evolved a high degree of expertise in several areas of business management.

The important thing for you to keep in mind is that this is a different system, and probably a totally different business than the ones you have worked for in the past. While some of the things you have learned will be invaluable to you in any business, other things are unique to a particular business. You should care about learning as many of these pointers as you can. Remember that you are paying a franchise fee and royalty to have access to what the franchisor can impart to you. Get your money's worth.

Don't let the franchisor short change you on opening assistance:

Just as you shouldn't drive away help you can get, it is very important that you not let the franchisor take any short cuts with the help that they give you. If the franchisor is relatively new to franchising, and/or you are a particularly strong franchisee with a long and strong record of business success, the franchisor might think you don't need the same help that a less experienced franchisee would require. Don't let your franchisor fall into that trap. Remember that you are paying for the knowledge that the franchisor has every time you open a unit. Things may have changes since you opened the last time. If the franchisor can prevent us from making even a single one, make sure that they do.

Don't selectively implement systems:

One of the most remarkable, and true stories that I have ever heard in franchising came from a franchisee who after suffering through a miserable and unsuccessful start up finally came up with a formula to make his business successful. After repeated conversations with him, each of which ended with him getting closer and closer to despair, he told me that his business had turned around and was now working well and making money. I asked him what had caused the change. He told me that "he had tried everything else, and nothing had worked, so he finally decided to do what the franchisor had told him!" It's funny now, but it wasn't then. Do yourself a favor, and don't selectively implement the systems that a franchisor gives you. Use them all. Once your business is successful, and you know its intricacies inside and out, you may have changes to suggest. However, at the beginning, use the franchisor's "cookbook", and follow each recipe as closely as you can.

Don't be hands off:

I know that one of the great appeal's that franchising has is that it can be duplicated and replicated, and that eventually an owner can have several units, and back away, or even run their business as an absentee owner. Some franchises will actually work that way from the beginning, and you can keep your current job while building for your future. However, as a rule, you should be prepared to be very hands on at the beginning, and should expect to work as hard or harder than you have ever worked in your entire business life! You want to make sure that you implement all of the franchisor's systems, and that you train your employees carefully. Until you do, you can not and should not back away from a hands on approach to running your franchise. Get in there and see how every job feels.

Don't be in too much of a hurry to make money:

Do it right! There is always a temptation to build quickly instead of well. Don't do that to yourself! If your business is one that requires a lot of foundation building or networking for its best long term performance, take the time, and build your business in a way that will make it most successful for the long haul.

Don't ignore other franchisees:

This is one of the most bewildering mistakes that franchisees make. Sometimes, either because of pride or professional issues, new franchisees fail to take advantage of the knowledge and experience of the other franchisees in the market. That is a true pity, because these franchisees have probably encountered most of the issues that you will face. If you can learn from these franchisees, find out what is working best, and what to avoid in your local market, you can be miles ahead of the game. Be careful not to let other franchisees dissuade you from doing certain things that they don't like doing, but instead learn about what does work, and how to do it. Local franchisees can be particularly helpful with issues such as where to find local product providers, how to deal with permits and local laws, and other issues that may be unique to your market. There is one caveat to this: In every business some people will do better than others. Listen to the leaders. Do what they do. If you don't feel you can, you've probably bought the wrong business.

Of course there are other things you should either avoid doing or be sure to do once you've gotten into business. This list should be a good starting place for you, but whatever you do, take advantage of all the help you can get!

Copyright 2005. All Rights Reserved