If you’re living the dream and running a successful chicken franchise, congratulations! There are so many people that would love to have your life. But what if you’re not? What if you’ve invested everything into your business, only to find that it’s not paying off, or worse — it’s making you less money than when you started? Before getting rid of your beloved chickens, read this article and see if these problems sound familiar.
If you’re living the dream and running a successful chicken franchise, congratulations! There are so many people that would love to have your life. But what if you’re not? What if you’ve invested everything into your business, only to find that it’s not paying off, or worse — it’s making you less money than when you started? Before getting rid of your beloved chickens, read this article and see if these problems sound familiar.
1. How to lose thousands in running a chicken franchise
I invested in a chicken franchise. It was the worst decision I ever made. I had no experience running a food business, and very little in the restaurant industry. I had to learn how to cook, how to manage employees, how to run a business, and how to deal with suppliers and clients all at the same time.I lost over a quarter of a million dollars, was off my game financially, and spent eight months recovering from that big mistake. After thinking through the mistakes, redoing my business plan, and investing heavily in supporting my team, my business is a lot stronger than it was seven years ago.
Quick note: This post does not discuss running an international restaurant chain or running a fine dining restaurant.
Everyone who admits they wish they had a business can probably relate to this problem. As humans, we’re all inherently driven to build a business that offers us an income that allows us to live life to the fullest while providing for a loved one. It’s a noble goal. I implore you to resist the urge to throw in the towel. Don’t give up because you don’t know a market, don’t hire someone to fix your website, and don’t buy a cookbook to learn how to attract customers to your restaurant. You have the passion, passion, and energy in your life that should be applied to a business that allows for those things to happen. Let’s get to the how. “Your time is your most valuable commodity.” -Earl Nightingale For the rest of this article,
I will describe a small business owner named Rich that bought his first franchise in November 2017. Rich had a good attitude about the whole venture, planning to learn and do everything he could to make the franchise succeed. Unfortunately, seven months in, he discovered he didn’t have the time. His restaurant wasn’t making him money, despite the fact that he was paying rent each month. When it comes to running a profitable business, time is a valuable commodity.
2. Know your costs and how to cut down on unnecessary expenses
It’s very important to understand your business’s costs and how to cut down on unnecessary expenses. If you’re not great with numbers, it’s best to hire an accountant to help you keep track of your company’s finances.
3. Make sure your location is right for the business you want to run
When you’re choosing a location for your business, think about what your ideal client is and where they’re most likely to be. Once you understand their needs and desires, determine that location taken into account.
4. Don’t over-produce when it comes to raising chickens, or you won’t be able to sell them all
Raising chickens in your backyard is a great way to have a steady supply of fresh eggs and to feel like you’re taking part in the “back to the land” movement. Mine started in 2005. It took me 8 years to get to the point where I could actually get $120 per month for each egg. I made less than $20/month before tax, and I didn’t give up. Here’s the problem: I was spending WAY too much money, and my profit was decreasing every month. Let me clarify: I’m not complaining. I love real estate and investing, so that business is all I have. I will keep investing for the rest of my life and probably get a little richer every time I do. What bothers me is that I was living an expensive lifestyle while I was doing the minimum amount to make my business sustainable financially. More importantly, I was spending the budget money that I didn’t even have, because the profit wasn’t keeping up.
Look, I don’t think it’s wrong to spend money on things that you enjoy and can afford to do. But I do think that you should stop and spend your money on things like: Property taxes Insurance Utilities Advertising (online and offline) Food and shelter Books, courses, and subscriptions Even vacation time! (Of course, that last point isn’t applicable to every business, but most people stress it enough that I want to make it a bigger point.) If you examine your real estate-related expenses and determine whether or not you are spending money on the true essentials of life, then you can figure out what you really need to start re-investing in your life.
Read more about 15-Minutes Fried Chicken Breast with Asparagus
Takeaway
If you’re interest in owning a chicken franchise then contact Fransmart today to learn more about the benefits of choosing the restaurant franchise. Also, it’s the goal to help you succeed, and work hard to give you every advantage possible.