Not So Successful Stories
Sometimes it doesnt go right. It's a fact, many small business's fail. Not the 80% that is mentioned a lot, but even one business failing is too many.
Mistakes get made, so learn from others. Maybe you are one of those "others". Let us know what went wrong for you, you might be able to help someone else, and at the very least sharing these stories is theraputic.
Email us from our contact page and let us know your details if you would like to have your story printed here.
My Personal Story
In late 2007 I started my first business. The business was a two store retail outlet, a franchise, which sold fixed price discount products, much like the Dollar Store.
I spent a long time researching, planning and agonizing over the decision to purchase this franchise. I met with the franchisor on numerous occasions, talked to other franchisee’s and eventually mortgaged my home and borrowed enough money to purchase the stores.
This was the most exciting thing I had ever done in my life and I was sure I was going to very successful; I loved going to work in the morning and worked very hard.
Within six months though my business and my life began to spiral out of control and the worry started. My marriage broke up first of all and this placed an enormous amount of strain on myself and my business; added to my personal problems my stores were not performing to the level that I had been lead to believe they would and that I had planned for so meticulously. To make matters worse, an employee had been stealing large amounts of cash from my business, probably for months. It was becoming increasingly obvious that the promised support that the franchisor was going to give me was not going to materialize and I found myself very much on my own, trying to smooth over the bank manager and keep some sort of control over my business.
Eighteen months after starting my business I had run out of money, was unable to pay suppliers and was on the verge of losing my home. The franchisor had deserted me, not even bothering to return emails or calls and I had no choice but to seek legal advice. After a protracted to and fro between lawyers I was finally able to head to mediation with the franchisor to settle the many concerns that I had regarding this business. At least that was what I thought.
At the last minute the franchisor pulled out of mediation, terminated my franchise agreement and I was left with nothing. With no money, no way of being able to pay lawyers to fight, what I consider to be a serious injustice, I lost my house and most of my assets of value. It was only much later that I was able to get legal help and only after I had nothing left.
The lesson here is making sure that you do the research when buying a business. Question everything and never take the sellers word, if their information cannot be corroborated then disregard it. I was advised by several ex franchisee’s that the franchisor did not really know what he was doing, and that I would get no help, I however disregarded that information as being sour grapes from people who had become disillusioned by the limits and controls placed on them by the franchisor, in hindsight they were dead on.
Learn from my mistake and do not rush into anything without the proper advice.
(I have left names and locations out of this story for the meantime as the legal battle continues)
