10 Common Mistakes Made by Prospective Franchisees

Recently the Roni Deutch Tax Center became a guest blogger for Franchise Business Review.com. The first entry explains the most common mistakes made by prospective franchises. You can find a snippet of the article below.

Opening up a franchised business is an exciting and momentous time for a new business owner. But with all the excitement, prospective franchisees may overlook some possible obstacles and are unprepared when the obstacles arise. To help the readers of the Franchise Business Review blog who might be considering a franchise, we have put together the following list of the 10 most common mistakes prospective franchisees make.

1. Over Investment

Over investing can destroy a project or business completely. Before investing any time or money into your franchise, create a basic budget plan to keep yourself on track. If you do not want to purchase software, there are plenty of websites – like Mint.com – that offer free budgeting tools.

2. Not Having a Plan

You never really know what's around the corner when you are starting your own business. Even so, having a basic plan can help you a lot in the end. Where are you hoping to open your store? How many employees are you planning to hire? How much (time, money, and patience) are you willing to sacrifice? These are all questions you should be asking yourself when you develop your plan.

Continue reading at Franchise Business Review.com…

Reasons to be a Multiple Unit Franchise Owner

WatchMeFranchise.com, a blog sponsored by RDTC Inc., posted an interesting article last week on reasons why it is beneficial to be a multiple unit franchise owner. Check out a portion of the article below, or check out WatchMeFranchise.com for the full version.

1. More Profitable

The biggest reason to open multiple units of a franchise is because you have the opportunity to make much more money. There is only so much money to be made from owning a single location, but if you begin to expand then the income possibilities are essentially limitless.

2. Franchise Incentives

Depending on the franchise you own, there may be incentives offered by the franchisors for owning multiple units. Incentives could be a reduced price, free services for your store, or even prime store locations. Franchisors will usually offer these incentives for multiple-unit owners, as it saves them time and money as well for you to have multiple locations.

3. Advertising Savings

If you own multiple franchises, you can save on advertising by running one set of ads, but providing two (or three, or four, etc.) contact sections. You have probably seen this in ads all over the place, but had never considered it as an advantage to the franchise owners.

4. Multiple-Unit Management

Managing one store can be hard enough at times; so many people get quite concerned about the idea of managing multiple stores. However, most multiple-unit franchise owners will decide to hire a store manager for each location. That way, as the owner, you become more of an over-seer and will not need to handle as many day-to-day operations.

5. Higher Success Rate

It has been proven that multiple-unit franchise owners have a much higher success rate than that of single-unit owners. While all franchises have a statistically higher success rate than other small businesses, multiple-unit franchisees have an even higher success rate.