Hurdles You Might Face as an Educational Franchisee
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Running a franchisee is a rewarding personal journey of becoming a master in your own right, but it has its challenges as well. Explains Morné Cronjé is head of franchising for FNB Business “Although franchising is one of the sectors that has shown resilience and continues to grow in this tough economic environment, the sector is not without risk for franchisees and franchisors.” Here are some to watch out for:
Sudden Burst of Competition:
You might be proud of your franchise model, but competition is always going to be there to give you sleepless nights. So, this is a time when you might have to be on your toes, motivate employees more, be alert about what your customer’s negative reactions are, how to innovate and keep the profits coming in. As the market share gets divided, profits will also be sucked in. So this is something to watch out for.
Explains Morné Cronjé, Head of franchising for FNB Business “Although franchising is one of the sectors that has shown resilience and continues to grow in this tough economic environment, the sector is not without risk for franchisees and franchisors.”
If you have not done your homework, you might land yourself in a soup, when it comes to the location of your franchise. It is imperative that a school or educational setup is accessible to the target audience. Else this can act as a huge hindrance in your selling model. Many franchise owners make the mistake of compromising on the location due to cheaper or lower real estate cost, losing out on this crucial business determiner.
Lack of Manpower:
Another huge challenge that can face you is lack of skilled manpower. If you plan to run a preschool or any other educational establishment, ensure your location can attract the right kind of manpower. Educated and skilled manpower is a crucial requirement to selling yourself well with the target audience. If this is a challenge you have already identified, then be prepared to invest time and money in grooming and training the right staff.
Is Marketing Missing?
The initial excitement does die out and you might have overlooked the aspect of brand recall or marketing. Remember, even established brands don’t stop investing in marketing because this simple step keeps the connect with your target audience. Like an old saying goes, “out of sight means out of mind!’ Ensure you invest in any kind of marketing, whether it is social media links, distribution of periodical flyers, mailers or even small advertisements in the local newspapers and journals.
This article is originally published by Uttara J Malhotra on Franchise India