New Business Opportunity – Franchising Industry
Growing competition and saturated markets have led many corporate entities to evolve new business opportunities. The flourishing franchising industry represents one such new business opportunity. It is growing at a lightning-fast pace. With the presence of a multitude of franchise options, there is enormous scope for aspiring entrepreneurs to establish a profitable and a sustainable business. This article sheds light on what to look for in a franchisor.
Do proper research on the industry you plan to enter
Search the internet thoroughly
Talk to experts in the relevant field
If any franchisees are already doing business, then talk to them about the viability of conducting a business in the relevant sector
Research the profitability of the business plan of existing companies
Once you zero in on the specific industry, then you need to identify the company which offers franchises. It is generally the company with the largest market share. You need to know the background information about the specific company; their vision, mission statements, and their present, past and future records. You need to collate this with your own guiding principles. If there is a match, then you can safely continue your research on the company you decided upon.
Once you identify the specific franchisor-company, you need to find out:
What kind of business plan it is offering to its’ franchisees?
What kind of premises will be needed (with proper specifications about the required area)?
Whether it provides support to set up the business initially?
Whether it provides pre-launch, launch, and post-launch support?
What kind of marketing tools and assistance it offers?
What kinds of training programs are provided?
What is the recruitment procedure for individuals and how many are needed?
What kind of skills-set are they looking for?
What is the requisite initial investment?
Whether they offer initial assistance to meet financial requirements?
What kind of logistics-support it offers?
Whether the charges it levies are economically viable?
Whether there are any hidden costs?
Are there clearly defined rules with respect to the relationship between the franchisor and the franchisee?
How long will it take to actually start the business plan after making the initial investment?
Whether the company spends on technological breakthroughs?
Whether it is environmentally conscious?
So, you have seen that to settle for a viable, profitable and a successful business plan, you need to do a huge amount of research. If you overlook even a small aspect then our business may not take off and our aspirations might fall flat.