The True Price Tag of Business Mistakes

Mistakes are Expensive

It’s not uncommon to hear people who have started their own businesses, outside of franchises, admit to making some expensive mistakes. Sometimes those errors destroy the business, whereas other times they simply put a massive dent in profits, impacting how much the owner actually receives.

How do independent businesses stack up?

There’s no one universal answer when it comes to the success of independent businesses, but the statistics don’t seem to favor them. In the U.S., for example, the common theory is that about half of all startups will fail within one year, and another 85 percent will fail over the first five years. Most, if not all, of these failures stem from mistakes made by the owners.

Even with those statistics, it’s easy for people who want to start their own business to become convinced that they will defy the odds and be the ones who make it. After all, it’s easy to see mistakes in hindsight, which is often 20/20. 

Why are there so many mistakes in independent businesses?

Businesses appear deceptively simple on the surface: make a great product or offer an excellent service and the people will come. 

In all reality, from money issues and legal concerns to marketing to location area demographics, there are a lot of potential traps that can catch independent business owners off guard. Without help and guidance, the life and death of the business relies solely on the owner, and that is a tremendous responsibility. One massive mistake or too many small ones can kill the whole thing.

What about franchises?

Franchise owners tend to fare better than independent owners simply because they receive the help, support and guidance of the franchiser, who has experience with everything from the brand to proper location sites and consumer research. A franchise owner also has a better idea of what he or she is walking into because franchisers must provide disclosure documents that help spell out the health of that particular company.

If you’re looking to own your own business, consider a franchise so you have the ability to avoid sinking the ship. Visit BetheBoss.ca today to get more information about opportunities in the areas and industries you’re interested in at an investment level you can afford.