What startup businesses can learn from franchises to boost their chances of success…
It’s common knowledge that half of all new businesses fail in the first year. Of those that survive the first year, a staggering 72% enter the “land of the living dead”, and become what venture capitalists call the “zombie company”. Zombie companies will typically live for about another 4 years or so, burning cash, and much worse than that, burning the time of the founders!
Add all that up and you’ve got an 86% failure rate within five years of start-up.
Conversely, franchises have a 90% success rate. So what can start-ups learn from franchises that could boost their chances of success?
If you’ve been following my posts, you already know that I’ve spent time on both sides of the start-up fence, having been both a start-up entrepreneur, as well as having invested in start-ups. What I’ve learnt from those experiences is that have taught me that the three largest causes of start-up failure are – poor business model, poor strategy and poor execution.
Right off the bat, you can see how franchises have an edge in business models and execution. The guess work is taken out of it – franchises are proven models, with proven systems. That’s what you’re paying those franchise fees for.
There is currently a model that sits in between the franchise model, and the much riskier, start from scratch model. And this is the model that I’ve been working with. It’s a proven business model, with a proven execution plan. It’s a business system that quite simply just works. You don’t need to be tech-savvy, and age certainly isn’t an issue, as you would have seen from some of the videos.
And hopefully, you’ve noticed that I haven’t addressed the “strategy” issue. Once you’ve signed up, real human coaches and mentors will work with you on your strategy, and even assist you with working through any problems you might face with execution.
If you’re interested, you can find out more here.
As always, if there's absolutely anything you want to discuss, you can reach me right here.
All the very best!