Analysis of factors causing failure in starting a dry cleaning business

Analysis of the factors that lead to the failure of starting a dry cleaning shop. As a rising industry in China, dry cleaning shops are now a rising industry in China. Many venture investors choose to open a franchise chain of dry cleaning shops. This can effectively reduce risks and bring good economic benefits. But if you think that as long as you join a chain store, you will just sit back and collect money, then you are too naive. Below I will introduce several possible reasons for investment failure, hoping to attract your attention. , Biased motives for joining
Taking this example of Moshan, the Japanese are quite proud of their high success rate of 10%, but even so, they still have a failure rate. The company carefully selects from among the 10 franchise applicants within a year, and only 10% of them (that is, people) conclude the contract. Even though this person has a strong entrepreneurial will and has the same business philosophy as the head office, in the end there are still % of franchisees who fail to succeed.
As can be seen from the many failed cases abroad, the most important reason for failure is biased motivation for joining. Some people think that as long as they join, they can just sit back and do nothing, and everything will be managed by the headquarters. The chain headquarters has several successful examples, but the examples of successful operations in other regions do not mean that it will be successful if you and the headquarters operate it locally. It must be remembered that the headquarters and franchise stores are two completely different business entities. What the headquarters provides (sales) to you is just a franchise operation combination. You must follow its experience and guidance and implement it step by step and effectively in order to obtain Success, in other words, if the franchise is to be successful, both you and the headquarters need to work hard. Even if the franchise operation combination provided by the headquarters is one-size-fits-all, if only the headquarters’ efforts play the role of guidance and supervision, But if you don't make a corresponding investment, you will end up in the loser's queue.
. Improper capital allocation when joining the franchise
In the rush to start a business and open a dry cleaning shop, some franchisees are raking in money, even borrowing usury, to raise franchise fees, royalties and establishment fees. Once the store was opened, although the business was going smoothly, in order to raise money to pay off debts every day, I was unable to devote myself wholeheartedly to the operation of the dry cleaning store. Once the operator who is supposed to be the leader leaves the front line due to capital allocation, other employees in the store will be immediately affected, and the service quality will gradually decline. Dry cleaning shops that originally had good business often suffer from poor financial performance, which affects the development of the entire store.
There are many examples of failure without detailed investigation before joining. Some franchisees do not have a clear understanding of the headquarters of the chain they are joining. They always think that they can join first and then if there are any problems in the future, the headquarters will naturally come forward to help solve the problem. As a result, after opening the store, there was no business guidance from the headquarters. If there was any difficulty in contacting the headquarters, there was no reply. Only then did I realize that I had been deceived. I never imagined that joining a dry cleaning shop requires so much capital and comes with so many constraints, which greatly reduces the enthusiasm for work. All such situations are caused by a lack of understanding of chain franchises.
There was no investigation into the industry
At first, I just saw the attractive conditions in the advertisement and the beautiful company directory, so I hurriedly joined. However, I didn’t know that after entering the industry, there were more people in the same industry. Excellent companies have more favorable franchise conditions and support and guidance. They want to quit midway, but they have no way out due to breach of contract.
, a one-sided visit to the money-making store
Before joining the dry cleaning store, although I followed the opinions of experts to understand what kind of business the head office was doing, and also went to see how the franchise store space was operating, but generally The headquarters will only take you to see stores that are doing well and hide the stores that are not profitable. It wasn’t until I joined that I realized that there were so many stores that were not making money.
、Joining rashly
You expressed your wish to visit the head office. Although the other party did not refuse, they used the excuse that it was far away and uneconomical in terms of time and money. It was only after joining that I discovered the situation at the head office.
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