Analysis Of The Causes Of Failure In Investing In Business

As early as the middle of twentieth Century and 80s, KFC and McDonald's, which were popular in the world, settled in China. They brought the new concept of "fast food" to China, but also brought the new concept of "chain operation".

Franchise chain as a new trend in the development of business operation, its charm is gradually recognized by the Chinese people, but again excellent chain, there are also examples of failure.

When the company joined in the capital market, the fund was out of order. Because of its eagerness to start a business, some of the franchisees had to go all the way to raise money, royalties and create fees.

Once the shop is open, although the business is still smooth, but every day in order to raise money to pay debts, it has no intention to fully invest in the operation of the business.

The operator should be in the front line of the army. Once the first line is left due to the dispatch of funds, other employees will be affected immediately, so the quality of service will gradually decline.

Customers are also sensitive, and slowly will gradually stay away from the store. Of course, the performance can not be further promoted. The shops that were originally good businesses often dragged down the whole business because of usury.

There are few examples of this failure.

Some of the franchisees do not know clearly about the chain headquarters that they will join. They always think they will join in first. Later, if there is a problem, the headquarters will naturally help to solve it.

As a result, after the opening of the store, there was no guidance for any business headquarters. There was no reply to the headquarters contact.

Specifically, there are mainly several types: 1., lack of basic knowledge of franchising.

Because there is no such knowledge, only in the relevant newspapers and magazines to see advertisements, call the past, after listening to each other's simple and heartfelt instructions, hurried to join.

It didn't occur to me that joining the company required so much capital and so many constraints that it greatly reduced the enthusiasm of the work.

All this is due to the lack of knowledge about franchise.

This combination of misunderstanding will eventually lead to "breaking up because of knowledge."

2. people know that this industry is good, but they did not investigate the same industry.

At the beginning, I only saw the attractive conditions of the advertisement. I saw a beautiful company catalog and joined it in a hurry. However, I did not know that after entering the industry, there were more excellent enterprises in the same industry, more favourable conditions of joining and support guidance, and wanted to quit, but there was no way out because of "breaking the contract".

3. people visit the profitable shops but fail to find more stores.

Before joining the company, although they also followed the advice of experts, they learned what kind of business the head office was doing. They also looked at how the franchisee managed, but general headquarters only took you to see a well run store and conceal unprofitable shops.

Only after joining, did I know that there were so many shops that did not make money while struggling.

Xu Qiyun, editor in chief: