According to popular belief, the major reason businesses fail is undercapitalization – put simply; they run out of cash. From Bloomberg, 8 out of 10 businesses crash and burn within the first 18 months. While this fact is not to scare you, however when you begin to consider a new business venture, it’s only human to view the business from an optimistic standpoint. No one decides to start a business without at least a slim belief that the business will be successful. With all the adrenaline and excitement of a new venture, even when armed with more than enough cash supplies, the very best brains have failed woefully in business! While optimism is necessary, it must also be tempered with a candid gamble that the hope of smiling to the bank may not always go according to your plan.
There can be unpredictable events that can influence your time to break even and profitability. For example, road construction in front of a newly opened breakfast cafe that reroutes morning traffic away from your shop for six months. Having enough liquidity to weather events like this, or a slower than anticipated ramp up to break even is critical to your small businesses success.
Allow your imagination run wild, pause…think about all the factors that could put your newly opened restaurant business ahead of others in Nigeria, let me guess: food quality is top on your list, level of hygiene, ambiance, and uninterrupted power; but did you think about consistency in recipe? Did you consider adopting a cash back policy (giving the customer cash when payment is topped using POS)? How about a customer service system? That word SYSTEM comes to bear.
Businesses fail because they operate without systems. Franchising is the only business model that runs with a proven system and has 95% success rate across the world. Ever wondered why a KFC drumstick in Houston tastes same with that in New York? One word: FRANCHISING! Franchising enables the entrepreneur to retain the quality as envisaged in the business plan.
As an entrepreneur it is important to be optimistic, however, it is equally important that your business processes is in sync with the franchise business model.
To learn more about your franchise opportunities available, hit the contact button on www.fbdsnigeria.com