What you need to know when starting a business in 2025: Avoid these 7 common traps

With the rise of the digital economy and the slash era, "one-person entrepreneurship and franchising" has become a dream pursued by more and more entrepreneurs in Taiwan, China and even the world. However, the franchise entrepreneurship road, which seems to have low barriers and high flexibility, is actually full of hidden traps. According to the 2024 Franchise Report, the failure rate of franchise entrepreneurship has reached 89%, most of the losers fell into the franchise trap. In order to help partners who are interested in starting a business in 2025 to avoid risks, the following 7 common traps are sorted out and professional solutions are proposed.

The rise of one-person entrepreneurship and franchise and the reality test

The threshold for entrepreneurship has been lowered, but the traps are becoming more hidden

In the past three years, due to various low-cost and low-risk franchise models (such as Internet celebrity cateringWith the popularization of online entrepreneurship (such as small-scale self-operated brands and online profit sharing), more and more young people and self-employed operators are joining in one-person entrepreneurship, but only 7% succeed, which is far below most people's expectations. Many failures have reflected that the real trap is not the superficial profit, but the major misunderstanding of franchise details, policies and operating models.

7 common traps in depth

1. Overestimating industry dividends: The myth of huge profits is actually a sales tactic

Many brands have launched slogans such as "earn $100,000 a month" and "get rich from zero foundation", but in fact, many entrepreneurial dividends have gradually faded. For example, in recent years Script Killing, study rooms, e-cigarettes, pet cafes and other franchise stores have been frequently reported to be closing down.

Reminder: Before starting a business, please strictly examine the industry cycle and actual operating data.

2. Underestimating fixed and hidden costs

Many brands only advertise the minimum franchise fee and minimum manpower requirements, but in reality:

• Venue rental, decoration, security deposit
• Equipment maintenance, royalties, operating and management fees
• The investment may not be recovered in the first year, and it is easy to suffer from capital shortage.

Table: Taking a pet cafe as an example (annual cost structure of a single store)

Recommendation: Make a detailed cost budget every month and reserve at least 6 months of operating working capital.

3. Ignoring policy and regulatory risks

Under the tightening policy in 2025, e-cigarettes, pet industry, short-term rental of houses (such as Airbnb) Due to changes in laws and regulations, a large number of stores are facing the loss of assets in the short term. "Policy risk has become the biggest external variable for franchise entrepreneurship."

• E-cigarettes: New policy eliminates more than 80% flavors, tax burden surges
• B&Bs: Approval and business licenses are difficult to obtain in some cities
• Pet economy: strict animal protection laws and skyrocketing medical expenses

Countermeasures: Pay close attention to the government's "Draft for Comments" and industry association warnings; highly policy-sensitive industries must have a Plan B.

New trends and platform recommendations for one-person entrepreneurship

Using affiliate marketing to reduce startup risks——AffiMarket Easy Alliance Introduction

In the field of one-person entrepreneurship and franchising, digital affiliate marketingPlatforms have become a trend in recent years. For example, AffiMarket, its platform features are as follows:

• Bringing together many domestic and overseas businesses including tourism homestays, e-commerce, AI tools, etc.
• No franchise fee, zero inventory, no hardware, flexible investment, suitable for one-person business
• The platform provides complete alliance profit-sharing teaching and one-to-one consultation
• Suitable for bloggers, video channel owners, community operators or anyone who wants to make money part-time

The following table briefly describes the advantages of AffiMarket Yilianmeng for one-person entrepreneurship

Reminder: On the one hand, today's new alliance platforms have greatly lowered the threshold for starting a business, but at the same time, you also need to invest time and energy in managing content, expanding traffic, and absorbing new marketing knowledge in a timely manner in order to create a stable income.

How to judge whether a franchise case is worth investing in?

Before you start a business, please ask yourself the following questions:

• Are there clear industry cycle data and investment recovery simulations?
• Do franchise brands and models have “anti-fragile” characteristics (such as multi-model income/low fixed expenses/exit flexibility)?
• Can you continue to study the basics of marketing, business, and finance?
• Are there any senior colleagues or platforms to consult and share practical experience and failure cases?
• Do the contract details protect the rights and interests of franchisees?

Checklist: 7 Steps to a Safe Franchise

1. Thorough investigation of industry data and trends (focusing on failure rates and payback periods)
2. List all costs (start-up, operating, hidden expenses)
3. Review policy/regulatory changes
4. Have a lawyer review the contract terms
5. Simulate worst-case cash flow
6. The first year investment shall not exceed 30% of total assets
7. Find a reputable third-party platform (such as AffiMarket)

As the 2025 "one-person entrepreneurship franchise" wave continues to heat up, only by being rational and prudent, solidly evaluating each step, avoiding the common traps mentioned above, and making good use of emerging platforms and professional resources, can we truly realize the long-term entrepreneurial dream and practice small and beautiful stable operations.