its already 6 months. its not making any money yet. should i close it down or should i wait? it's a frachised food business
2006-08-02 21:53:33 · 7 answers · asked by Em H 2 in Business & Finance ➔ Small Business
Try to sell it first. If you think that your food is good, try to advertise the business. If not, and the food is nasty, then you should close it down. Bad location maybe? find out what is wrong with the business. fix it. If you don't make money, then close it. Most food businesses (about 90%) fail within a year.
2006-08-03 00:39:05 · answer #1 · answered by smartguy 1 · 3⤊ 1⤋
What kind of losses? Can you live with them for a while?
If so, unless keeping this business afloat is jeopardizing the mortgage payment, I'd stay with it. It can take years for a business to plant the roots it needs to grow.
Something to consider, if you've only been open 6 months, perhaps you need to get your name out there more. Are there things you can do to get more recognition?
Without more information, I can't say if any of these advertising ideas are appropriate or not, but I'll throw them out there anyway. They are much cheaper than having to buy newspaper, radio or TV ads.
* Sponsor a youth sport team if kids are part of your clientele.
* Hold a fundraiser for the local school PTO - all profits from one night goes to the school's PTO - contact the local PTO and find out. They are always looking for a few bucks.
* Hold a fundraiser for a larger-scale organization, like breast cancer research.
* Special deals on slow nights (one place I know does buy-2-get-1 free deals on Tuesdays - their slowest night of the week).
Good Luck!
2006-08-03 15:29:47 · answer #2 · answered by Jon T. 4 · 0⤊ 0⤋
Sometime it is good to cut loss of your business to avoid further losses. However, are you really interested in your present business ? Do you really like it ? If yes, it will worth for you to do a further study about what is really the problem of your business. It may be because of the location, finance, marketing, staffing and other problems which are not the responsibility of your franchisor. The fact is that you have already a franchised business. Afterwords, please try to overcome your problem. I think that is a rewarding challenges for you. If you are not really interested in the business anymore, just cut your loss by closing down your business strategically. Next time, choose a business that you really like it and do the business plan properly. Good luck.
2006-08-03 06:43:45 · answer #3 · answered by sastra 3 · 0⤊ 0⤋
6 months isn't very long. Alot of people have to wait years before seeing profits. It seems your business has not met your expectations. You should speak to a financial advisor or somebody who runs the same franchise in a different location. If you speak to somebody who's already 'within' the franchise, you'll be able to ask any questions you have. Hope this helps.
If you have invested alot of money into this, stick it out as long as financially possible. :D
2006-08-03 06:03:11 · answer #4 · answered by montanasamra 1 · 0⤊ 0⤋
6 months is not a long time. Give your business some time and am sure it will pick up and show some profits. In the meanwhile you can work on analysing if there is sthg wrong and look out for areas of improvement.
2006-08-03 05:01:39 · answer #5 · answered by Suraj 3 · 0⤊ 0⤋
If you invested a lot on this you should think twice before closing it down. If it is a successful franchise, good advice could be available on how to make it better.
2006-08-03 05:01:14 · answer #6 · answered by Kanda 5 · 0⤊ 0⤋
wait for some more time. Think differently from others... How can you serve better than others...
implement it... victory is yours...
After that you are going ask a question to us where can I open other brances....
2006-08-03 08:21:27 · answer #7 · answered by Ananth P 3 · 0⤊ 0⤋