Australia.TO:
Three out of five newly established businesses in Australia cease to trade within 5 years of commencement.
Now obviously your business is going to be OK, because you bought a franchise and you have the lifeline in the established system, but the other business owners around you, well they established their own business and they’re in some sort of trouble. They have their neck in the noose.
When you purchase a franchise your chances of success are generally much better but it does depend on whether it is a first, second or third tier franchise and how well the franchise group is administered.
So why do businesses whether they are franchised or not cease to trade? In most instances it is because there was little, inadequate or no research into what was being purchased or established and how to run it.
If research would really help, where do you start? What sort of research do you do? What questions do you ask? Who do you go to? Read on…