Health and Wellness Franchise versus Starting Your Own Business

Health and Wellness Franchise

First of all, let us understand the width and breadth of health and wellness businesses. Various products and services aiming to help individuals stay fit and healthy are covered under the umbrella of this business. The products and services of this industry range from health supplements, gyms, Ayurveda centers, apps to monitor calorie intake and burnout to yoga training.

The health sector is growing in India with an impressive Continuous Annual Growth Rate of 18% annually. It is noteworthy that a major chunk of this sector is constituted by franchise businesses that are spread out all over India. According to the International Franchise Association, the businesses in the health sector were among the top 100 franchises in India in 2017. Couple this data with the population of India which is the largest in the world and you will get an idea of the huge potential in India that can be tapped. There are many entrants in this fast-growing industry and each has their own approach in keeping with their beliefs.

Pardon the pun, it is essential to observe why such businesses in this sector show such healthy growth. An increasing number of people in India are becoming conscious of their health, and lifestyle. Busy schedules, stress from the workplace, pollution ambient in the environment and extensive use of chemicals has resulted in a spate of lifestyle diseases ranging from diabetes and asthma to chronic allergies. This increase in diseases has, in turn, boosted the market for all related businesses.

An entrepreneur willing to explore the potential of the health sector should first define his areas of interest, experience, and scope. Such a person should also keep his goals in mind, for example, the revenue and clientele of a yoga training center differ from that of a gym. Still, it is advisable to stick to one’s core strengths in order to run a successful business.

Finance: Once a businessman has sorted out the primary categories of businesses of well being, he should start investigating the investment required in each segment. When you consider the investment to be made at the start, also consider the Return on Investment and the time frame to reach a point of break even. This is one of the main reasons why a well-known name may work better for you than starting your own independent business. An entrepreneur will have better clarity on the financial part of the business from the performance of existing businesses functioning in a similar market. It is important that you do not neglect to search for the options available for financing the enterprise that you have selected. Well-known and reputed names in the business will attract financing from banks easier than a standalone business in the same sector.

Human resources: After working out the finances, consider the need for human resources in the segment that you have shortlisted for inquiry. Verify the availability of trained and knowledgeable human resources that will match the standards or services required by the target market. Providing guidance and training to a person with the view to improve the overall health of the person is a serious business. If anything goes wrong with a client's health, it can backfire and generate volumes of negative publicity in today's age of social media. The availability of trained human resources and keeping them up to date with the latest trends and research is a challenge to be considered very seriously before accepting any investment opportunity. Here again, the fixed format model of business gets the advantage of regular and professional training.

Expert know-how: When a person looks for a product or service related to health, the person will definitely focus on credibility. It is very important to have brand value because no one wants to experiment with their health. This is why consumers prefer chains over independent services as they are usually known to provide proven products and know-how from an expert. Marketing and presence of a brand at a national and often international level boost the confidence of a person seeking to improve his well-being.

Basket of products: To be noted is the fact that most of the customers prefer to buy a complete health package. A large scale of a business can leverage its scale to provide expert input in all relevant areas from acknowledged professionals who have a proven track record. Providing expert services in many areas is not possible for an independent business. Due to these reasons, a unit that is a part of a bigger business has better chances of performing profitably as compared to a standalone business. If you have clients that you help for a fitness routine, they will also take your advice for health foods, supplements, diet, and nutrition. An individual in this business will have the opportunity of catering to the entire family's health needs. One can study opportunities available and try to associate with one that will let one tap these opportunities for multiple products or services in stages. This will allow him to settle down the basics and strengthen his customer base before offering the next service to a client. This stage wise implementation will give breathing time to plan for corresponding expansion of financial and human resources and infrastructure.

Future trends: The younger generation of India is a lot more alert and awareness about health and fitness. A huge part of this section is still below the earning age but in a few years, this segment will bring huge revenues in India. This segment will be highly specific in its demand and not compromise on the quality of service. If you are to enter the fitness business now, you have to consider these emerging market trends.

Franchisors will charge you fees and royalty on your revenue but they will provide you with brand value, expert know-how for every service and help you to be up to date in the industry. This amounts for a lot as compared to a startup where you will spend years before building a stable client base. Still, the risk of losing out on new products and state of the art technology will always loom over your head as you will be busy trying to deal with the basic operations and marketing of your independent business. One of the basic ideas of working with an established brand is to reduce the period of break even.

It is a good idea to get information from an existing business brand as well as one operating a standalone business. One can understand the difference between their clients, client behavior, target segments and strategy to cater to market needs. Getting into details will also help you understand the investment versus profits and methods adopted to be relevant to constantly changing demands. Actual, on field visits, will definitely convince you that choosing a reputed franchise is a very good option due to the dynamic nature of the industry.

There are successful franchises in all segments of this business. It is often the right location, connections, and marketing that work together to pull clients and convince them to spend on products and services offered. Sort out all your strengths and weaknesses and zero in on the best option available to you in the business of well being.