FreeStuffEngine.com - Franchise Failures, Why Does it Happen? By Lance Winslow

It is a widely known fact that the failure rates in small businesses in America are quite high. The American Dream of owning one?s business is not as easy as it seems. Running your own business no matter what kind is hard work and it does not matter if it is a Franchise or non-Franchised Business.

Franchised Businesses have lower failure rates, but that does not mean they don?t fail. I had often watched small businesses come and go in our industry for the better part of 30 years. In the Mobile Car Wash Industry, which for the most part I started in 1979 in California, as there were only a few similar operations around the country at that time and all of them were small. We had almost over night copycat competitors and at least 3,000 copycats within the first five years in our state alone.

We put at least 10 out of business in every city across the country we operated in. But they are like drug dealers, you arrest one and there are ten more trying to take their place. Most humans cannot innovate, only imitate, so if you want to win, you must continually innovate as things move very fast in the lead group and even faster on the break aways. We noticed when they copied our operations they did not copy the hard work ethic or attention to details involved in customer service. They were lazy and they only cared about making money; a lot of it and very fast, without planting, growing, harvesting and baking the bread. Well, life does not work that way you see? Business is hard work and you only get out what you put in. There will be failures in business whether franchised or not if you think you are going to get rich quick without effort.

We had the same problem in our franchising company (CarWashGuys.com), as we would sell someone a franchise, market their area and get them $10,000 plus customers a month. Then they would fail to show up to do the work in their own company. Then they would complain, get up at 10 AM and wonder why it did not work? The answer is obvious really, how can you succeed if you don?t try and give 110%? You know in hindsight of this observation of winners and losers in the market place, it seems that it is very easy to lose respect for humans when you see that replay itself over and over again. Think on this

Entrepreneurialism
added July 9, 2006 It is a widely known fact that the failure rates in small businesses in America are quite high. The American Dream of owning one?s business is not as easy as it seems. Running your own business no matter what kind is hard work and it does not matter if it is a Franchise or non-Franchised Business. Franchised Businesses have lower failure rates, but that does not mean they don?t fail. I had often watched small businesses come and go in our industry for the better part of 30 years. In the Mobile Car Wash Industry, which for the most part I started in 1979 in California, as there were only a few similar operations around the country at that time and all of them were small. We had almost over night copycat competitors and at least 3,000 copycats within the first five years in our state alone. We put at least 10 out of business in every city across the country we operated in. But they are like drug dealers, you arrest one and there are ten more trying to take their place. Most humans cannot innovate, only imitate, so if you want to win, you must continually innovate as things move very fast in the lead group and even faster on the break aways. We noticed when they copied our operations they did not copy the hard work ethic or attention to details involved in customer service. They were lazy and they only cared about making money; a lot of it and very fast, without planting, growing, harvesting and baking the bread. Well, life does not work that way you see? Business is hard work and you only get out what you put in. There will be failures in business whether franchised or not if you think you are going to get rich quick without effort. We had the same problem in our franchising company (CarWashGuys.com), as we would sell someone a franchise, market their area and get them $10,000 plus customers a month. Then they would fail to show up to do the work in their own company. Then they would complain, get up at 10 AM and wonder why it did not work? The answer is obvious really, how can you succeed if you don?t try and give 110%? You know in hindsight of this observation of winners and losers in the market place, it seems that it is very easy to lose respect for humans when you see that replay itself over and over again. Think on this
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Entrepreneurialism