Stage Three Franchise Site – What Are The Biggest Risks?
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In this section we explore the six biggest risks we face in building the vision we have at Links Golf Cafe.
Most franchises don’t want to explore their weaknesses, let alone post them on a website for all to read.
We believe that being aware of our strengths and weaknesses is much better than attempting to ignore or avoid them.
We trust that you will agree, and once again happy reading. And feel free to ask us more detailed questions on any of these risks and strategies to counter them.
#1 Market Risks
There is some risk that there may not be enough demand to sustain a franchising network as large as indicated in our trading area analysis.
This risk would be offset by the introduction of new products to reach different market segments and by penetrating the existing target markets more deeply.
Our five revenue streams were developed as a conscious effort to expand our market reach while keeping our uniqueness.
#2 Product Risks of the Links Golf Cafe franchise opportunities
There are other indoor golf centers, and of course many coffee bars and cafes.
And it would be foolish to assume that no other company would start to offer this in a similar format. The risk would be that they would begin to offer their product through a franchise format and begin marketing it in a similar method to ours.
To minimize this risk, Links Golf Cafe will need to continually update its products and expand its golf offerings, and continually provide value to the Company Members, to ensure that it can remain differentiated from the competition. This continuous improvement is an integral part of the Links Golf Cafe system.
#3 Corporate Risks
There currently is a risk of lack of experienced and committed full-time personnel to properly manage the company. This could result in a lack of support to Individual Franchise Owners and Regional Franchise Owners and would lead to slow or no growth.
To mitigate this risk, this very plan involves funding that team from the very beginning, and a plan to expand that funding as we grow. If we build too large of a team, too fast, that carries additional risk, so we believe a balanced approach is prudent.
And, despite investing seven years and hundreds of thousands in their previous companies, both Founders have decided to focus on this full-time.
#4 Links Golf Cafe Franchise Owner Risks
Links Golf Cafe Owners may fail to achieve expected results for a variety of reasons:
- failure to market the business;
- lack of funds to cover start-up costs;
- poor customer service;
- failure to follow existing systems;
- poor financial management;
- poor time management; and
- poor screening in the beginning by Team Headquarters.
To minimize these risks an extensive system for awarding and supporting Individual Center Owners has been put in place. (As you know, you’re in Stage Three of Five).
In addition an extensive Links Golf Cafe Management Plan (described in the Your Team section here) has been created to allow for a General Manager and a team of assistant managers to help run the Center, providing a broader base of energy and support for the Links Golf Cafe.
#5 Regional Links Golf Cafe Franchise Ownership Risks
There are certain risks involved in Regional or Master Franchise ownership.
Awarding Regional Franchises to individuals that are not self-motivated or driven to succeed will jeopardize the growth of a given Region. In addition, if any of the Regional Franchisors develops an attitude that does not nurture and support their Individual Links Golf Cafe Franchise Owners, resentment will build and slow their growth.
To minimize this risk, Regional Franchisors are required to invest significant capital, and are very thoroughly screened to ensure values that match Links Golf Cafe.
In addition thousands of pages of support manuals were developed before we launched our company so that we have extensive systems already in place to support the Individual Links Golf Cafe Franchise Owners from day one.
We have two areas of competition, direct and indirect. Learn more in the Competition Area here.
We are aware of the competition and believe we’ve created a compelling differentiation in the marketplace. We’re not just striving to be a great franchise, we truly want to create the world’s best franchise. One of our Founders, Tom, had the pleasure and fortune to work for the largest franchisee in the McDonald’s franchise system at the time, originally Store 19 in McDonalds. That experience showed Tom, done right, franchises can be an amazing force for good and making money.