Yesterday we wrote about the benefits and risks of multi-unit franchise ownership. With a bit of research and pragmatism, multi-unit ownership can work for you. That said, business can be difficult sometimes and sometimes franchises fail.
Especially given the state of the economy at the present, failure is something that every franchisee and franchisor must confront. There’s no point in tip-toeing over the truth. Times are tough in the small business world. Only by acknowledging the chance of failure can we overcome it.
For a thoughtful meditation on the causes of failure in franchising and ways of overcome the stigma of watching your business collapse, we’d like to recommend the writing of Paul Segreto, who has a run multi-unit franchise and now blogs at franchiseEssentials.
We recently came across Paul’s thoughts on the subject of franchise failure and thought they were illuminating.
In this blog post, Paul frankly discusses how his franchise failed, and does not avoid pointing the blame at himself.
“Let me clarify something. I failed as a franchisee. Not because of anything the franchisor did or didn’t do but because I put and kept my head in the sand and did not face reality. I could go on and make excuses about things that happened around me but at the end of the day I could have turned things around if I got my own head out of the sand, made some difficult decisions and took full, immediate responsibility.”
Ultimately, though, having experienced the ups and downs of franchise ownership, Paul states that failure is something that he has learned from and the experience has inspired him in business.
“Yes, it was a tremendous learning experience but not one I would bestow or wish on anyone. Now, all I can do is to offer my experience to anyone in the franchise industry that needs assistance. As we’ve entered 2009 in the realms of economic uncertainty, I’m certain already difficult situations have been compounded but I’m confident a snap back to reality could only help. If just one franchise business is saved from the consequences of failure, then we’ve made progress. Progress we’ll continue to build upon.”
A dose of reality can prove quite beneficial when considering buying a franchise.