Franchising has so much going for it. The business takes off immediately, and franchises have an easier time weathering storm, especially during tough economic times. However, things are not always rosy, especially in education.
Franchises Overlook The Importance Of Marketing
Learning franchises sometimes need to rely on the brand to market itself. However, even established, relatively successful businesses always continue marketing. What’s worse is the business starts as a known product, so some education business franchisees assume there is no need for marketing.
What people need to remember is competition still exists. Some locations in Singapore may be more competitive than others, so learning franchises still requires marketing to have a competitive edge over the rest.
Poor Location Choice
Franchises are usually guided on maintaining the same standards as the parent company. This means the fees, curriculum, and success should be similar across businesses with the same name.
For example, a parent expects similar services when they transfer a child from one school to another because the assumption is it is under the same management.
However, even the best business can have a poor-performing franchise because the location is wrong. For example, some entrepreneurs opt for areas where real estate costs are lower to keep the costs down. However, the target consumers may not be in this area, resulting in lower enrollment, and ultimately, the franchise may fail to take off.
Absence Of Skilled Workers
Another mistake learning franchises make when choosing a location is the need for more skilled workers. While it is essential to have the target market within easy reach, businesses also need to select areas where it is easy to get skilled workers.
If the learning franchise has infant care, preschool, and primary school, entrepreneurs must ensure they have easy access to people with the right expertise.
Alternatively, they need the resources and time to train employees to provide services similar to other franchises.
The Assumption Of Guaranteed Success
Granted, franchises have a higher chance of success than little-known brands. However, there is no guarantee that the education business franchise will thrive because of the famous brand. Entrepreneurs should work hard to ensure the brand doesn’t suffer negative publicity.
The parent company always gives conditions when franchising on the quality of service expected, including training staff. The entrepreneurs are also trained in managing the school and the measures to ensure everything runs smoothly.
However, even with all this support, success is not guaranteed. The entrepreneurs have to own their investment and ensure the franchise’s success.
Undermining The Competition
Education is quite competitive in Singapore. Some schools are more popular than others, but competition is still high. Those who invest in education business franchises often assume they have a competitive advantage, so much so that they do not consider other competitors.
However, it will take better rates and service from competitors for a franchise to start losing students. So, franchises should keep an eye on their competitors to see how their quality of service differs and how this will impact the franchise’s future.
These are some of the common mistakes that learning franchises make. Sometimes the entrepreneurs forget that it is a new business, even though the brand has existed for decades. It is best to treat this business as a startup and offer services that will ensure the school lives up to its name.