Showing posts with label Franchise. Show all posts
Showing posts with label Franchise. Show all posts

Tuesday, 21 May 2019

Set Your Franchising Goals and Achieve Your Dreams

May 21, 2019 3


A very important aspect of life is creating our goals and following them. We all have our ambitions and desires and we want to see them fulfilled. For some, being rich could be a goal and for some to travel, while still, some might want to be famous. These goals set our lives on a path and shape our lives as we follow them on our quest to fulfill our goals.

Similarly, even when setting up a new business or taking up a new franchise consists of goals. Starting any new business requires you to have goals and it is important that you define them. Clear definition of goals helps in creating a path or defined steps, which you must take in order to fulfill your goals. Defined goals give you clarity and help you distinguish the important from the unimportant and achieve your goals. Today, we will learn how to understand and define your own franchising goals.


What do we mean by goals?

A goal is a result we want to achieve, it is what we aim for or what our ambition is. Goals can be short-term or long-term. A short-term goal could be to make a sale in a day and a long-term goal could be to make a thousand sales in a year. However, in another scenario, a short-term goal could be making a thousand sales in a year and a long-term goal could be to expand geographically. This shows that goals and their time scales are all relative and highly subjective. No one else can define your goals for you, you have to define your own goals.

Also, goals can again be classified as personal and professional. Your personal goal could be to travel around the world and your professional goal might be to expand your business around the world, in this case, the personal and professional goals are in sync and compliment each other. It is important to have our personal and professional goals to complement each other. A disbalance between the two would not lead to a successful personal or professional life.

How do we define personal goals?

People spend their whole lives still figuring themselves out. Psychologists have written books and books over it but it is not the easiest thing for many to be able to know themselves. The first step in defining personal goals is to know yourself and to understand yourself. Below mentioned are some things to keep in mind while defining your personal goals.


 1. Lifestyle Preferences
We need to know what do we like and want, for example, if we like a busy and hardworking life or whether we want a slightly laid back life. Knowing this doesn't just help us to know ourselves better but it also helps us in choosing business franchise options, which would match our preferences.

2. Money
Money might be considered in both, personal and professional goals. But you need to know the importance of money in your life and how important or not important it is to you. Personally, you will have to choose whether you'd be happy in a high paying job or you would be unaffected even if the income was somewhat lower.

3. Personal Interests
You need to carefully gauge your interests and be sure of what you like. Knowing which field your personal interests lie in will simplify the process of choosing your professional or business or franchise field. For example, if your interests lie in retail then that would help you in choosing relevant opportunities. It is important to choose a field or area of work that you are interested in.

4. Personal Capabilities
It is also important to know our own capabilities. If you haven't trained in accounting but want to enter the field, then it will be out of your league and it will be difficult for you to thrive in it. Similarly, knowing your capabilities also provides the opportunity of playing to your strengths, for example, if you are great at marketing then choosing an opportunity, which will enable you to excel at marketing would be an easy choice for you.

Keeping these points in mind, you can define your own personal goals and fields of interest. From here you can start narrowing it down to your professional or in this case franchising goals.

How do we define professional goals?

All professional goals are also defined in a similar manner, by understanding your professional requirements and trying to set achievable targets.



1. Growth
Choosing a franchise will depend greatly on your growth plans for the franchise. Whether you are looking for an opportunity with fast and multiple growth options or you are looking for a franchise opportunity with slower but steady growth. You might even want to expand your business and own multiple franchise units. These are all goals that you need to think about and set for yourself.

2. Profits
The bottom line of any business is the profit it brings, and one goal of your would be to increase profits or revenue. Defining a goal such as this, gives you clarity in forming your business models and creating your sales and marketing plans. It will help to keep the costs in check and will result in increased efficiency.

3. Corporate Social Responsibility
Today, a lot of people are well aware of the world and its challenges. Many want to help the world through their work. You can set a goal which defines your corporate social responsibilities in your areas of interest, for example, if you want to help the environment or promote free education. Setting a goal like this defines the character of your business and motivates employees and brings self satisfaction.

4. Outrunning the Competition
Retail franchises suffer a great deal of competition from their domestic as well as international counterparts. In order to run a successful franchise, outrunning the competition or at least trying to do so would be an essential goal. Franchise owners will have to be creative in their marketing campaigns and will need sales strategies in order to gain an edge.

These are some of the personal and professional goals to consider when starting a franchise. A combination of both will help you take your business to greater heights along with self-development and on the way to self-actualization. Starting a franchise without any concrete goals is a way to imminent failure. So, start planning and set on to achieve all your goals and desires.




Tags # Brand # Business # Entrepreneur Continue Reading
By at 3 comments:
Labels: , , , , , , ,

Friday, 3 May 2019

The Winning Food Franchise Trends In 2019

May 03, 2019 7


What is the latest restaurant that everyone is talking about? The new one, where you can order sugar free activated charcoal ice-cream on the tablet and pay for it without having to wait for the bill. These are your latest food franchise trends for 2019.

It is also interesting that franchising itself is the trend in the restaurant business this year. The market share of franchises in the food business is growing at a fast rate. This business is one that is very dynamic and continually sets the benchmark one notch higher. Only those that can match steps with customers' expectations can last in the long run. 

To understand the reason for the trends that are actually in vogue, we need to understand the market. The millennials have just gained adulthood and are getting their presence noted in all sectors. This is more so in the food business in India.

The millennials have grown up with ample access to information and communication technologies. They check ratings on the internet, make reservations on the app, post trendy pictures of their coffee as they update the status on social media, make cashless payments and rant about the awesome food on their blogs. They are highly mobile themselves and while they are here today, next week can see them abroad, and the third week on an official tour across the nation.

It is this very lifestyle of millennials that is reflected in the food franchise trends in 2019 in India.

Global: 
There is a lot of exposure to trends all around the world through the internet. Customers in India have been abroad for work or leisure and are aware of the high standards in developed countries. They are delighted to find similar quality and high standards of service back home and become loyal customers of the food outlet. The global trends in food tastes, for example, sorghum grain are reflected to some extent in India too. The interesting thing is that the food business is very quick to respond to such trends.

Healthy:
The current generation has faced the brunt of pollution at every level due to large scale industrialization. To this, they also have the added woes of unhealthy lifestyles. This has resulted in a very cautious approach that seeks to ensure health in every aspect of life. Food is obviously the basic pillar of health and hence there is an enhanced focus on healthy eating habits. Right from healthy ingredients to healthy processes, everything is noted.

The food joints that serve fresh, fat-free, and sugar-free foods are trending this year. There is a good demand for organic, vegan, and dairy free foods. Demand for food that is free from allergens such as gluten-free or nut-free foods is rising.

Presentation:
Nowadays there is an emphasis on presentation in every area. In the food business, presentation and plating of the food are becoming increasingly important. People order ice cream frozen with liquid nitrogen just for the sake of watching those pale twirls of gas rise up and fade away beautifully in the air. Ice-cream franchises that serve desserts frozen with liquid nitrogen are evincing a lot of interest. Whether it is a cup of coffee or a simple bowl of fruit salad, it has to be served in a pretty way that will make for a fine photograph drawing a hundred likes on your social media account.

The focus on presentation is not limited to vegetable carvings or rainbow colored cakes, it is becoming an essential part of the service too. The serve-ware has to be eye-catching and cool. Even if it is your daily cuppa tea, it feels better to be served in a clay kullad. Even the waiters and other staff are expected to be presentable, knowledgeable and able to converse well. There is a popular franchise in Mumbai where waiters suddenly break into an impromptu dance that is actually choreographed very well. Even in tier III cities like Rajkot, it is not impossible to find innovation in presentation. There is a soda shop in Rajkot where the server has presentation and serving skills that are no less than a bartender in an upscale international franchise.

Presentation and plating are becoming extremely important for franchises that target children and teenagers. Categories such as ice-creams, bakery, and confectionary can just not afford to miss out on presentation. Pretty colors, clever names, and cool packaging are what children side with. If you do not have lovely pastel colored macaroons sitting in your window to invite the cool kids out there, forget about being the market leader right away.

Needless to say, the competition is tough. Earlier, customers were easier to impress but now it is tough to beat even the average mom in plating skills. It is a trend that will extend for some years.
Technology: 
Technology is trending in every sector be it education or travel so how can be food left behind? Restaurants all over the world are seeing major changes in the way food menus are used, dishes ordered and checks paid.

Alexa and Siri are competing to serve you not only at home but at the restaurant too. Restaurants are incorporating voice ordering systems where you can use Alexa to order your usual dish at a favorite restaurant. If you wish to try a new dish, the self-order kiosk or a tablet will give you a detailed menu and help you to place your order. No more waving hands at the waiter to catch his elusive glance at peak hours of the weekend. You don't even have to wait for the bill. It will be visible in your mobile and your online payment app will pay it. How great it would be if you would not even have to earn that money and an app could do it in return of a five-star rating of the restaurant? Did I just hear that it is possible? Well, nothing seems impossible now!

Take away:      
This trend is so entrenched in the food business that it is hardly fair to call it a trend. Trends go away after some time but the takeaway trend does not seem to be going away. With most of the big cities facing a crunch for space or time, this model of the franchise business is gaining popularity at a fast rate. There are franchises where you can order food online, by phone or through the food delivery apps. These kitchens are clean and hygienic but they do not have any eating area attached to it.

At a time when peak hours see a lot of waiting time and traffic, such options are getting more popular.Eating out has all been about the experience for a long time but it is becoming more so now. People look towards a restaurant as a social place and a café as a meeting place increasingly. A food business that are able to offer customers a specific feel of character, high standards of service, and make the experience as hassle-free as possible, tend to stand out of the rest. The trend is to be one step ahead of the millennials. Those franchises that succeed in doing it will always pull crowds.
The trends of 2019 are basically about new experiences that engage the attention of the customers and either make them feel at home or make them feel awed while respecting their time and comfort.

Tags # Brand # Business # Entrepreneur Continue Reading
By at 7 comments:
Labels: , , , , , ,

Wednesday, 1 May 2019

Understand The Finer Details Of A Franchise Resale Strategy

May 01, 2019 1

Every franchisor who is new to the franchise business is interested in addressing a potential franchisee candidate. He strongly believes in his business model and looks for people that are enthused by his business model and attributes of the brand.

Persons that have managerial skills but are reluctant to dive head-on into entrepreneurship often test themselves by getting involved in a franchise. They participate in all the activities with much energy and interest. They also employ all their past learnings to scrutinize various aspects of the model.

With the passage of time, the new entrepreneurs get busy with the fixed format of business and continue to run it successfully. But soon they start realizing that a franchisor puts many constraints on them and they hardly have any freedom to make decisions. When they get used to business as usual, the routine starts to bore them. This is especially true of people with a strong spirit of entrepreneurship. They start losing motivation to continually work on improving the business.

Whenever a franchisee loses interest in the business, it stops growing. Imagine a business that has many such franchisees. In such a case, the franchisor is eager to sign on people with a more persistent interest in the business. But, how can new franchisees be introduced if there are no more locations remaining to be explored?

This is a very bleak scenario but it can be remedied if there is proper franchise resale strategy clearly outlined in the original franchise agreement. Sadly, most franchisors see such a situation in a negative light and totally fail to address it.

In the recent times, this issue is under a lot of discussions and many believe that a clear strategy is found to be extremely essential a few years down the line when getting franchisees will not be the only focus of a business. Franchisors are now advised to think about it and incorporate required clauses in the original agreement itself.

The legal document binding a franchisor and franchisee in the event of a resale becomes very essential to retaining the interests of all concerned and avoiding legal tangles in the future. The document should clarify certain points that are discussed below.

Standard selling procedure:
The agreement should mention a standard set of steps and rules to follow in a specific order when the decision to sell is taken. The first step can be to take approval for sale from the franchisor. This will bring the franchisee and the franchisor on the same page regarding the future of the franchise unit. The manual can further mention the processes of advertisement, independent valuation of the business, selection of new franchisee, various selling fees, and joining charges. It can also prescribe the format for the agreement of sale that will link the new franchisee to the franchisor.

Selection of the new franchisee candidate:
The franchisor should have the final say in whether a candidate can be approved to buy a franchise from the existing franchisee or not. If an agreement limits itself to allowing resale but does not mention such authorities, then there are high chances of an unsuitable candidate getting the franchisee.

As is mentioned as often as can be, only wealth cannot be the criteria for the selection of a franchisee. The candidate would have to prove himself on many counts such as experience, qualifications, knowledge, and personality. If need be, in certain businesses requiring particular experience and knowledge, the criteria can be mentioned explicitly. It should entirely be the franchisor’s prerogative to select or reject a prospective candidate.

The selling price of the franchise:
A franchisee that has invested a lot of time, money and effort to develop his business will want to receive profits that are proportional, by selling the franchise unit. While this is perfectly reasonable, the selling price should not be very high. If the profits from selling the franchise are very high, any of the other franchises will also be motivated to make easy money through the sale of their franchise units. A very high selling price will also dissuade clever businessmen from buying it. It would more or less surely fall into the hands of a person who has money but no business acumen.

This is a very undesirable situation because if the person is not suitable for business or does not have adequate exposure to the field, there are chances of performing badly. Such a person can even damage the brand by not meeting the standard quality that customers associate with your brand. Thus it should be clearly mentioned in the agreement that the selling price of the franchise should not go beyond a certain percentage over the original franchise fees.

 Buying charges:
When a person is ready to buy a franchise business, there is an opportunity for the franchise unit owner to earn. Do not forget that the franchisor is the original owner and he also gets an opportunity to earn. It is a different matter that some franchisors charge only a small amount that will proceed towards providing training and other support that is necessary for new franchisees onboard.

Some of the entrepreneurs believe in making money if the opportunity presents itself. They charge the franchisee as well as the prospective buyer of the franchise unit. Some view this additional cost as something that will dissuade sellers as well as buyers. Whatever fees the franchisor thinks appropriate should be mentioned clearly in the document.

Exit strategy:
In addition to the points discussed above, there has to be an exit agreement between the original franchisee who wishes to sell and the franchisor. A franchisee receives a lot of product and service knowhow while working with a franchise through extensive training. They are also privy to a number of business secrets relating to marketing and sourcing. This fact leads to the risk of the know-how being used unfairly after leaving the franchise. It can become a major source of worry for the franchise that has spent years building this knowledge.

In order to protect the business interests in such a situation, the franchise declaration document has clauses that state that the franchisee cannot engage in a competitive business in the same area as the territory of the franchise that was held by him.

There will also be clauses relating to the payment of dues, fees, and charges up to a certain period of time during which the business continues. There will also be clauses relating to the lease agreement in case the property where the business is based, belongs to him.

Three party selling deed:
The process of selling a franchise by a franchisee is related to three different parties, namely, franchisor, existing franchisee, and new franchisee. The document has to bind all three in agreement. If a standard format is designed by a lawyer it could be used with the surety that it is legally binding in certain ways that are desirable to the franchisor.

Thus, it is best that a franchisor consider these changes as inevitable and consider them in legal the provisions that ensure stability to his business. The selling process should be very clearly mentioned in the manual and should also be touched upon during the initial franchise training. If the franchise is at such a stage where there are more chances of such a situation, he can organize a workshop to guide the franchisees.

A smooth transition of ownership of franchise will help all the three parties to adjust to the necessary change and resume business in a short time without any loss of market.



Tags # Brand # Business # Entrepreneur Continue Reading
By at 1 comment:
Labels: , , , , , , ,

Monday, 29 April 2019

Common Mistakes Made In The Franchise Business

April 29, 2019 0

The concept of a franchise business is founded on the idea of an entrepreneur making minimum mistakes. Letting a franchisor take control of the strategic part of the business and dealing only with the least requirements for operations management is an idea that lures many to the franchise business. Though a lot of franchise businesses are booming in India, a lot are failing too. Let us understand the common mistakes in a franchise business that lead to failure.

Wrong selection:
Again and again, entrepreneurs are warned about choosing a business with only the business in mind but often a franchise is selected for the products or services that it is associated with. The products may be good but it does not ensure profitability. One has to check market demand, competition, business model, franchise support, human resources and investment in order to make the right choice. Most people think that business with the most number of franchises is the best performing one. It is definitely not so because often proximity of franchise outlets leads to loss of business. Sales and revenues of a brand may be high but so may be the involved costs and fees. Even franchises with less number of outlets do well because of larger territories or due to a better business model.

Not taking a lawyer’s help:
In India, there is no clear franchise law the agreements between franchisor and franchisee are based on a number of business laws including the Contract Law. In other countries where there are franchise laws, the franchise disclosure document is supposed to have very specific and clear clauses. It is not so in India and it makes it all the more complicated to understand the implications of the agreement. Taking help from a lawyer will make you understand the weak points of the agreement that may pose a risk to you. Many of the franchises are national as well as international and even individual nationalities are different which leads to complicated legal procedures. It is imperative that you take a lawyer's help to understand the agreement thoroughly before making any decision.

Ignoring existing franchisees’ feedback:
Prospective franchisees are always advised to meet and talk to a number of existing franchisees from different locations. One should also make it a point to talk to those franchisees that do not seem to be doing very well. Some make the mistake of not taking an existing franchisee’s words seriously. It is not the right attitude to think that you can never face a similar problem because you have a lot of experience.

Location:  
For any business, whether it is a franchise or not, location is the ultimate factor for success. Even the most lucrative businesses in the midst of the right market will not perform well if placed in the wrong location. A yoga franchise in the middle of a noisy street or a preschool next to a factory can never be successful. One has to use basic common sense and invest in the right location to ensure adequate footfalls that convert to sales and profitability. This mistake is often made by entrepreneurs that have own space and are willing to use it for their own business.

Inadequate finance:
A businessman ends up with inadequate capital when the investment amount, working capital and cash flows are not worked out accurately. Some people who are new to the business tend to think that they have ideas, experience, and resources to run the business at a cost lower than that projected by the franchisor. Some of them may have overestimated their capacity to mobilize loans from banks or other sources. The cash flow cycles in some businesses are long and this has to be kept in mind while planning the investment required. The investment that is stated by a franchisor is usually more or less accurate and one should be ready with the finance before-hand. It is absolutely necessary to visualize and arrange the finance that will be needed until a business reaches the point of break even.

Insufficient training:
Though one may have enough experience in a particular business, one would need to understand all aspects of the business from the franchisor's perspective and the business format. Franchisors usually have extensive training programs for the entrepreneur and all related human resources but the onus lies on the franchisee to benefit from the training. It is very easy to ignore training schedules in the rush of starting a new business when a hundred things are calling for your attention. Proper training of all employees is extremely important to reduce problems and dispense satisfactory services.

Not adhering to the format:
The essence of any franchise business lies in following its business format. In spite of this, some people think of tweaking the format to their convenience. Generally, franchisors are very strict about adherence to the format and levy penalties but some people find ways to evade it. This eventually results in dissatisfactory services and products leading to a drop in market share. It leads to loss of the value propositions of the franchise and thus loss of brand value.

Believing you are free: 
Many people give up a stable job to start a franchise business thinking that they will have the freedom to make decisions and act as per will. This is a very misleading notion. The franchisor is the main owner of the business who makes all the important decisions and the franchisees have no say in it. Some of the decisions may not agree well with a particular entrepreneur’s business profits or ideals but nothing can be done about it. Starting a business, whether it is a franchise or not, means that you are responsible for the management of the unit and cannot give in to your whims.

Relying too much on a franchisor:
In any franchise business, franchisors give support in the form of training, supplies, and marketing, but it does not mean that a franchisee has no duty towards these functions of the business. A franchisors job is to provide support for the same but the franchisee has to manage the rest.
An unreliable franchisor:      It is important to carry out the background check of a franchisor. Many sources will tell you how many new units of a particular franchise opened but it will be very difficult to find out how many units shut down. There are some franchisors that are actually into the business of reselling a franchise at a coveted location. The franchisors continue to receive franchise fees and royalty fees even if a unit is not making a profit.

Over marketing:  
When a business is just starting up, the operations are not yet streamlined and there might be lingering confusion about roles and responsibilities among the employees. Due to good marketing and high brand value, customers flow in as soon as the unit is open to business. When there are too many customers due to launching offers and management is not prepared to serve them properly, it results in a negative image. Because of this, it is necessary to target only as many customers as is possible at the time of launch.

Some of the above mistakes result in situations which cannot be corrected and lead to major loss of time and money. Mistakes are made by every entrepreneur but some mistakes prove detrimental to the business. It is better to find out and avoid making mistakes which can be easily avoided.


Tags # Brand # Business # Entrepreneur Continue Reading
By at No comments:
Labels: , , , , , , ,

Thursday, 25 April 2019

The Keys To Franchisee Engagement

April 25, 2019 2



In most of the franchise businesses, the franchisee is very much in touch with the franchisor but gradually their engagement decreases over time. It can be seen as a natural course of things or it can be seen as something undesirable for both the parties. There are many benefits of promoting a culture of high engagement with all the franchisees associated with the business.

Lack of engagement within a franchise business results in lower attendance during yearly congregations, lack of response to emails or other communications, reduced participation in surveys, and so on. In fact, the low engagement between the stakeholders of a business becomes a culture in some organizations.

The engagement of franchisees with the franchisor and amongst themselves is a must. If there is no engagement, there will be no common understanding of the vision of the company. If the franchises do not have a vision in mind, they can hardly be expected to be clear about their own role within the business in order to follow that vision. Thus, it is very important to keep the franchisees engaged with the business.

Dialogue:
The most important factor that decides the level of engagement is the level of dialogue between the franchisor, franchisees, and management teams. The franchisor should have a clear communication strategy. More often than not, there is no communication strategy outlined in the business. There has to be a clear and efficient communication strategy that coordinates all the departments. Everyone associated with the business must have a good understanding of the objectives of the strategy too. People tend to make a greater effort for something when they understand the value of it and related consequences. Apart from regular instructions or updates regarding day to day business, there should be communication regarding other subjects also.

The dialogue has to be two way and to make it happen a franchise has to demonstrate that he listens to his franchisees. He can demonstrate it by responding in the right way. A lot of issues can actually be solved by devoting time to listen. There can be no immediate response to strategic issues but prompt action can and should be taken on practical complaints.

Once a fair dialogue is initiated, the effort to continue it at a regular frequency should be made. This communication strategy has to be clear with the management team too and they should know that clear, responsible and timely communication is expected from them too.

Motivation:
Motivation can and has moved mountains. But a lack of motivation slows down the entire system. Most of the franchisees feel that there is nothing for them in maintaining a regular exchange with the franchisor. Though we cannot point at anything tangible and say that this is the motivation, there are ways to create intangibles that can motivate. For eg: When there is participation in a survey, you can ensure that each of the participants is thanked for their time and even the survey results can be shared with them. This will also lead to introspection about one’s own role, situation, and expectations.
Once, there is motivation, the ways of participation will open up and you should be proactive in scaling up the dialogue in a useful direction.

Rewards:
While motivation is essential, many people feel motivated only by tangible results. In order to address such people, there should be public recognitions and rewards for different aspects of running the business including engagement with the brand. This will keep the one receiving a reward motivated and also encourage others to be more active and responsive.

Freedom with responsibility:
Franchise business is opted for by new entrepreneurs who want to play safe. Over time, the entrepreneurial spirit inside them starts feeling choked by prescribed formats to adhere to all the time. Depending on the situation, there can be limited freedom to experiment on the suggested ways of doing business. It can be like an experiment to improve the functioning of the business. The timeframe and terms and conditions for it can be strict. If there is a success, there should be efforts at incorporating the suggestion on a larger scale of business. This is one of the ways a business model can be kept up to date with the market requirements of the day.

Participation: polls, advisory councils:
To increase the participation of franchisees on a higher level, franchisors themselves should take the lead to form advisory councils to administrate forums on different topics related to the business. They can put in their inputs regarding marketing, training, and other relevant subjects. There can be opinion polls on a regular basis too that can highlight the preferences and problems that franchisees have in general.


Timing:
The timings of communication should tap on important events or days coming up. There should be enough time for the franchisees to respond to the communication
Too much email is not a good way of communication because the mails will be ignored if there is frequent unimportant communication.

Events:
National conferences where all franchisees meet each other and interact with the franchisor and his team are important. These conferences should actually have enough value so as to encourage participation. Rewards for outstanding performances and other motivational practices can be employed on this platform.

Apart from conferences, let there be online events too such as webinars and online training that have interactions built in the pedagogy of the training modules. Simple celebrations and get-togethers can also play a vital role in building empathy within the community by generating a space where different franchisees from the region discuss their problems and approaches to solve them. This greater understanding also gives way to an in-depth understanding of all aspects of business leading to a reduction in dissatisfaction with the franchise.

A culture of high engagement cannot be built overnight and franchisors have to be very patient and consistent until results start showing up. Keep those that are engaged, motivated to continue the approach by recognition and motivate those who are not engaged by regular dialogue.
Slowly most of the franchisees will start sensing value in it. Once they start responding to your communication, keep up the momentum and leverage it to achieve your business goals. A high degree of interaction will help to solve many problems. New franchisees will also find enough guidance from the existing franchisees.

Inputs from franchisees from wider backgrounds and locations will help to innovate, design new products and services, and increase the location-specific connection with the customer base. These are the very factors that help in continual improvement and ensuring that the business does not suddenly face the danger of becoming irrelevant.

A healthy exchange with franchisees over all regions will inform you about new trends and changing markets much in advance. You will have the time to address these changes with a change in your product or marketing. Such responsiveness to consumer demands will ensure that you do not lose brand value and retain customers over a long time.

You are the franchisor that conceptualized the business and built it from scratch but it is the franchisees that bring growth to a business. Learn to respect their opinions and feedback. It is your idea but it is only wise to take advantage of the ideas and learning of all stakeholders.

Tags # Brand # Business # Franchise Continue Reading
By at 2 comments:
Labels: , , , , , ,

Tuesday, 23 April 2019

9 Points to Remember Before Selecting An Educational Franchise

April 23, 2019 1

Parents in India are spending a lot on the education of their children. Because of a skewed demand to supply ratio, there was a phase in the education sector in India when schools provided unsatisfactory educational services but parents had no option to but to send children such schools. This situation created a very fertile ground for mushrooming businesses in education. Leaders in the education sector started redefining their models for an ideal school to enable replication in other locations with entirely different demographics.

The government relaxed its regulations regarding schools to enable more schools to provide education to more children at all levels from preschool to medical school. Today the franchise business in the education sector has reached a developed stage and faces increasing competition. All the same, it is still a lucrative business opportunity and one that has a fast expanding market.

Certain aspects should be considered before selecting a franchise for education.

Age group:   
The main age groups in education refer to preschool, school from grade one to twelve, teenagers appearing for entrance exams, undergraduate and postgraduate. The intricacies of each are immense and complicated. On a more basic level, the preschool education franchise focus more on safety, health, hygiene, and often day care services for working parents. The main years of schooling focus on education as a composite of subject knowledge, developing life skills such as communication, sports and extra-curricular activities based on interests in arts, science, and technology, social service, etc. 

There is a huge demand for tuition classes that train children to appear for entrance exams for such as PMT, JEE or qualifying exams such as IELTS or GMAT. At the college level, private and self-financed colleges have been established in every field ranging from hospital management to nano-technology. One has to choose a segment that one is comfortable with and understands the most because apart from qualifications, many other factors come into play.

Regulations and certifications: 
Regulatory requirement for each age group is different with respect to infrastructure as well as resources. Higher education requires approval by AICTE or UGC in India. School boards also require conditions for affiliation to be met. The international boards such as IB, ICSE, CIE or IGSCE have very strict standards regarding the qualification of teaching staff, infrastructure, safety, and curriculum. The affiliation procedure for UGC, AICTE or school boards is lengthy and complicated.

When choosing a franchise for education, bear in mind the requirement and standards that will be continuously expected. The external examination and assessment procedures are also costly and rigorous so they must be considered before opting for a franchise. Most of the franchise schools have options regarding the board for affiliation. A detailed study of the costs and prerequisites will be necessary for the right selection.

Human resources development:
Educational franchises have a highly defined pedagogy and curriculum. They provide training to teaching staff to ensure adherence to the method. There is also continuous refresher training and assessment of teachers. These frequent training schedules are costly and have to be ensured in a predefined time frame. 

An educational institute would definitely benefit from training support. Support would also be required for the recruitment of staff that is qualified as per the specified norms. Franchises have specialized staff for training and maintain a regular schedule so school management does not have to focus on the training and recruitment of teachers.

Market segment:  
Make it a point to study the positioning of a school with respect to the market. Parents are willing to pay fortunes for the education of their children and schools often differentiate themselves as a basic level by the facilities offered to students.  Another point of differentiation is in the ideology of the school. India is at a turning point where western influences are thriving along with the resurgence of the ancient Vedic approach to life.

Some of the schools consciously align with these philosophies and parents are also highly aware of these influences. Schools are highly associated with upbringing and thus choices differ. With respect to location, these choices can matter. There are patrons for simplicity and there are patrons for the smart jet set.

Finance: 
The infrastructure required varies greatly in different educational establishments. Consider the investment that would be necessary and also the time that is taken to break even. Find out whether there are specifications about owning the infrastructure or provision for rental lease agreements. Banks are willing to finance well-known businesses but the education sector has mostly intangible assets so you will need to be doubly sure.



Due diligence:   
Before signing an agreement with an educational franchise, research about its compliance with the law. It should not have too many lawsuits filed by parents as this can result in negative publicity at any stage. When buying out an existing franchise school, be very particular whether all required documents and compliances are in place or not.
Safety is one of the major points of concern for parents now and they are not willing to compromise on it at all. Some states such as Gujarat have a fee regulatory committee too which sets a cap on the maximum fees that can be charged by a school. Consider the business model in the context of such an environment and on a long term basis.

Tie-ups with corporate:   
An educationist can benefit in many ways through tie-ups with corporates. In locations where huge industrial plants are established, there are often tie-ups with education franchise to open preschools and other services. These tie-ups give the opportunity of tapping a captive market and even become a matter of prestige.

Franchisor policy: 
An educational hub requires a predefined number of students to become profitable. If the franchisor issues multiple licenses in a small area, the market is lost and it may become difficult to break even for a franchise. On the other hand, there may be a limitation on holding a franchise for multiple locations. At times, the franchisor also competes with the franchise school to enroll students. Such policies should be understood and considered before entering an agreement.

Support:  
Assess the level of support provided by a franchise in terms of training, resources, marketing, and management. A school requires all these frequently and inadequate support by the franchisor can result in a chaotic situation.

The best way to understand the functioning of a particular school is to work with it at all levels. This allows for a grasp on the different requirements of an educational establishment. In the past, there have been incidences of irrational expansion without adequate financing and marketing which has lead to loss of face and money for the investors.

All the same, most of the franchises schools in India are doing very well and winning the confidence of parents for all age groups and segments. The considerations to make before buying a franchise in the education sector are many. One has to assess the capability to deal with different issues. The involvement and knowledge required are immense and also requires continual up-gradation.

Associating with a franchise will definitely help you to hone the educational services provided by you. By shouldering the major responsibilities for human resource development and marketing, the franchisor will leave you enough time to concentrate on the functioning of the school. Adherence to the predefined processes and standards will be your main job and eliminate most of the sources of worry. Make a thorough research of the market and the opportunities available and go ahead with a reputed franchise.

Tags # Business # Educational Franchise Business # Entrepreneur Continue Reading
By at 1 comment:
Labels: , , , , ,

Friday, 19 April 2019

Health and Wellness Franchise versus Starting Your Own Business

April 19, 2019 3
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.
Tags # Business # Franchise # Franchise Opportunities Continue Reading
By at 3 comments:
Labels: , , , ,

Wednesday, 10 April 2019

Is Franchise A Good Option For An Entrepreneur?

April 10, 2019 1

For entrepreneurs, franchises are definitely one of the best business options, but as said, the franchise is not for everyone.

Which is better- franchise or business?

Both the franchises and businesses are good for entrepreneurs. But, both of these have their own cons and pros. Let’s, for starters, focus on the cons and pros of the franchises. If you want to start something under someone’s trademark, then the franchise is very good but if you want to create something of your own, then business startups are ideal.


Pros of franchise
  • An established brand.
  • Franchises are supported by national campaigns.
  • Most of the franchises share the suppliers of the franchisor.
  • Franchisors provide the necessary support to the businesses in order for them to succeed.
  • Franchisors sometimes provide financial aids in the form of loans.
  • You are all on your own, even though your business will have someone else’s brand name.

Cons of franchise
  • Initially, you have to invest a lot in order to get the license from the franchisor.
  • You cannot work beyond what’s mentioned in the franchise agreement.
  • In most cases, the franchisor charge franchise fee from the franchisee for marketing purposes.
  • The business is completely depending on the success and the market penetration of the franchisor.
  • You need to pay a huge amount of money as the royalty fee, as long as you will be a franchisee of the business.

What are general costs associated with a franchise?

For starting a franchise business, one needs to consider a number of business costs like:
  • Location cost
  • Equipment cost
  • Signage cost
  • Inventory costs
  • Advertising fee
  • Investment cost

Conclusion

As the franchise network is quite complex, before investing lakhs of money in any sort of franchise, it’s best to look into the basics of buying such a business.

Tags # Business # Entrepreneur # Franchise Continue Reading
By at 1 comment:
Labels: , , ,

Friday, 5 April 2019

How a Franchisor Can Make the Maximum Money From a Franchise Business Network?

April 05, 2019 0

When different franchisors start accepting new franchise deals in various locations, they initially make a loss with the aim of making a long-term profit from the sales return of the connected franchise. Making high charges during the investment of the franchise isn’t the way in which franchisor earn the money because unless the franchise is a successful one, the profit returns won’t reach the breakeven point.

From where do the franchisors earn their money?

For any franchisor, the main source of income that they have once they cater their business name to multitudinous franchises is the royalties they receive. This royalty is received as a certain flat percentage on the entire profit of the franchise or on the turnover.

Whenever a franchisor starts on a new franchise, it takes around eighteen to twenty-two months to reach the breakeven point, surpassing which both parties start making profits.

How to maximize the royalties received?

In order to ensure that you are receiving the maximum royalties as a franchisor, here are some of the ways in which you can do so.

•       The franchise business in which a franchisor will invest must be capable enough to successfully run the business in the long term, For this, you can set some additional costs beforehand like on-site travel costs, monitoring personnel for the first three to four months, and so on.

•       The franchisor needs to highly active in communicating with the franchise in order to properly train them about the business or deals.

•       If some franchises are struggling to get successful, as a franchisor, it’s your duty to arrange some boosting programs.

•       The franchisor should be able to differentiate between low and high performers.

Conclusion

Earning from a franchise isn’t an overnight action because it’s a kind of investment for the franchisors. Maximizing the royalties overtime will definitely increase the profit returns of the franchisor businesspersons.

Tags # Business # Franchise # Franchise Opportunities Continue Reading
By at No comments:
Labels: , , ,

Wednesday, 27 March 2019

How to Measure Company's Digital Strength Correctly?

March 27, 2019 0



Since you're here finding answers so we will assume that you've done everything you can for your brand but the results are like your board exam results i.e. not as good as you expected it to be or maybe disappointing. Just like your mothers used to talk about other student's marks, akin to that, people these days are talking about your competitors but not you. No no! You don't have to go back to your board's trauma. We cannot do anything about boards now because you know.! But we can still improve your digital performance.

Scrutinizing your brand’s digital footprint is more desirable and effective method rather than the brick and mortar method i.e. customer-to-customer feedback. Digital assiduity captures consumers more organically than surveys and other traditional methods. But the issue is about choosing the right metric. There are numerous metrics available. Mostly preferred ones are digital share, digital magnitude and digital momentum. Since you're here for a solution and not research so we would like to recommend digital momentum.

Do not underestimate the power of social media. IT is a revolution in itself. Being a celebrity brand is all about search-like-share. If your brand is a getting a space on the first page of every search engine if people on social media platforms are liking your idea enough number of times and if your website or page is getting shared a lot of times then your brand is going well. Otherwise, you need to improvise your methods and techniques to reach out the masses. In today's techno-savvy world, the strength of your brand lies in inspecting its reach across social media, websites and search engines.

The question lies in how to measure the reach?  Measuring the strength should start with the analysis of the number of followers a company has but that is just quantity. Beyond that, quality of your brand lies in the engagement of peeps in your content. The engagement and sentiment of people could be analysed by observing whether the reviews and mentions are more positive or negative. Many softwares are available in the market which can do the analysis for you but it is always better to manually analyse your results.

Ending this with some golden words by Brian Solis."Social Media is about sociology and psychology more than technology."

Tags # Brand # Business # Entrepreneur Continue Reading
By at No comments:
Labels: , , , , , , ,

Tuesday, 26 March 2019

Why a Franchise is Better Than Being a Business Holder

March 26, 2019 49


Our country serves as a land of opportunity for each and every people residing here. If your dream is to become the Business owner there are several ways available to achieve it. One can start their own business from scratch by cultivating any new idea he is having in his mind or choose from various franchises and business opportunities available.
I believe that Franchise is one of the best ways to start your own business as they are having their own proven business model that would surely achieve success under your management and guidance. I believe that franchising is one of the best ways to start your own business as it avoids many hardships and struggles that startup businesses tend to have. Below are major advantages which state why franchising is better than to have your own business.

1.    Common Brand Name and Operating System

The most vital feature which distinguishes Franchise from the business is its Brand recognition. All the Franchisees operate under a common Brand name. Customers get flooded to your store just because the store is having a recognized and well-known Brand name associated with it. A franchise system makes every effort to ensure that each operator is doing things the same and every unit is supporting and reinforcing the brand.

2.    Stable Foundation

Franchisees have an existing strong business foundation which influences people to join their franchise. Not only their Brand name but there marketing, Future Plans, Strong Customer base and almost everything which small business owners need to establish as well existing in the franchise. They also state you there ROI which ensures that in how many months/years you would and how much you would be getting.



3.    Ongoing Training & Support 

A franchise commits to support your store during the tenure of your business. At the time of starting up your own franchise store, they train your staff and assist you in the sales and marketing tactics too.

4.    Cost

Franchise business is basically a onetime investment with a lower investment cost. As one needs to pay the Franchisee fees with the investment money and your business is ready to start.

5.    Legal Disclosures

In a franchise business legal requirements are very rigid and revolve around a document called the Uniform Franchise Offering Circular (UFOC). This document contains all information about the company as well as the opportunity being offered to their investors. It also includes all rules and restrictions related to the business operation and financial statements of the franchise company.
Thus it is advised to invest your money in the franchise business if you want to earn money and wants a good return on your investment fast.
Frantastic is that platform where you would get franchise opportunities to choose from 500+ brands to start up business.


Tags # Brand # Business # Entrepreneur Continue Reading
By at 49 comments:
Labels: , , , , , , ,