Past Failed Franchise? Here’s When You Should Try, Try, Try Again

Second Chance Avenue Sign

 

There’s no way around it. Buying a franchise is risky. Owning any type of business is risky. It’s the reason why franchise ownership is so magnetic. It repels the people who are risk averse and continually attracts the people who love a challenge.

If you’ve owned a franchise in the past without success but are considering investing in a new franchise, you’re part of the latter group. You love a challenge.

Past failure in franchise ownership is not predictive of future success. Here are a few ways you can tell if you’re ready to jump into franchise ownership again.

You Can Pinpoint Past Mistakes

The best predictor of future behavior is past behavior. That is, unless you identify your past shortcomings and learn from your mistakes.

If you can pinpoint the reasons your past franchise didn’t succeed, you’re in an excellent position to identify ways you can avoid making those same mistakes going forward. For example, if you ran out of working capital faster than you expected, you might want to start slower or make a smaller investment up front.

Get introspective. If the reasons for your past franchise failure are fixable, you’re in a good position to try franchise ownership again.

You’re Ready to Do Your Due Diligence

Perhaps you did your due diligence in the past. Regardless, you must do your due diligence (and then some) with your next franchise.

  • Talk to the franchisor
  • Research the franchise online
  • Read the Franchise Disclosure Document in detail

The more you can learn about the franchise you’re considering buying, the better you’ll be able to anticipate your chances of success.

You’ve Talked to Other Franchise Owners

Although you’re backed by an organization, owning a franchise can oftentimes feel lonesome. You’re left to fend your way in your immediate market, which can make drumming up new business more of a challenge than you first anticipated.

Before you start your next franchise, it’s important to talk to other owners of the franchise you want to start. Get to know the unique challenges they’ve experienced and the unexpected obstacles that popped in their path. Knowing this before you start will help you gauge whether the next franchise you’re considering is the right one for you.

You’re Willing to Seek Outside Assistance

One of the biggest benefits to owning a franchise is the immense amount of support you get from the franchisor. You have a proven strategy and a wealth of marketing resources at your fingertips. Still, you’re in charge and have many decisions to make on your own that influence the success of your franchise.

That’s when hiring a franchise coach or outside consultant can help.

Talking to a third party can give you fresh perspective on areas where you can improve. It’ll help hold you accountable so you don’t make the same mistakes you made in the past. With this person or people in your back pocket, you increase your chances at success.

Ready to Go?

There are many benefits to owning a franchise. Even if one didn’t work out for you in the past, you can still find success with a different franchise in the future. By recognizing past mistakes, doing your due diligence, and seeking out help from others, you’ll set yourself up for success with your new venture.