Why Franchising is a Great Business for Beginners?
It is always a known fact that the best way to gain financial freedom and the only guaranteed step in becoming truly rich (which we all dreamed of) is to become an entrepreneur. Others may even consider this as a definite road to bounty if carefully done. However, the one question which has the hardest answer is: How do I start? This may seem too complex, but if you actually focus and get right into the heart of the question, it becomes simple. Surely, there are a lot of answers only if you talk to the right people who can shed light and provide you with proper directions when you are in this kind of crossroad.
Consequently, there is one established and proven system that is ideal and is even recommended for start-ups. This is called Franchising. Before learning the nitty-gritty of franchising, there is an obvious need to define what this business term really means.
So, first things first, let’s define the concept. Franchising is an arrangement where one party (referred as the franchiser) grants another party (the franchisee) the right to use its trademark or trade-name as well as certain business systems and processes, to produce and market a good or service according to certain specifications. In other words, franchising is an interdependent kind of business strategy that can be likened to a network as it builds relationship that allows a number of people to share important things and achieve the same goal which is to get new customers and maintain the old ones.
This is actually good for people who have no idea on how to run a business. This is an instant hands-on practice in honing the entrepreneurial skills in you. It offers a step by step process as you (the franchisee) is required to undergo necessary training that tackles all the aspects of the business. Moreover, if you plan to pursue this kind of venture, this is like having a business for yourself but not by yourself.
Franchising provides all kinds of support from start to finish. The moment you signify your interest and commitment to be long term partners, a lot of pre-opening stuffs are provided for to get your business rolling as soon as possible. Your franchiser will help you with site selection, design and construction, business training (which includes the financial part) among others and of course they are 100% behind you on grand-opening day to give you a bang on your first day of operation.
As the business progresses, there will still be on-going support that the franchiser will continue to offer such as continuous training, advertising (regional and national), assistance in operations, management support, access to bulk purchasing and other relevant needs. If you are keen enough to digest the whole picture of the entire system, then slowly you can be somehow ‘independent’ to run your business. If this is the case, the chances of business success are much higher as compared to doing it solely on your own. This is mainly because the method used and most of all the products you sell are tested and proven over time in a large scale market. An established branding has already been in place and there are identified ‘pre-base customers’ that are ready to take you in. Normally, this part of the business is the hardest because it takes years to make your brand known and acquire loyal customers. But with franchising, the numbers speak for itself; about 90% who engage in franchising were successful in their chosen endeavor.
Lastly in terms of quality, control and consistency of the products, this is never a problem. This is the one that maintains the core bond that ties the franchiser with its franchisee. Thus, you are definitely assured of the desired quality wherever you may be located. Most of the time, this one is highly maintained. The trick is to find a brand that you are a fan of and check if their franchising model is aligned with your own belief system. With these as your bases, you will never go wrong with franchising. Even the (Philippine) economy is on your side as there is a projected increase of 30% with the franchising sector alone (both local and international brands). So, if you have enough capital to share and have what it takes to become a franchisee, start your journey now and enjoy the roller coaster business ride. Good luck!