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

Wednesday, 17 July 2019

Build Business Kingdom

July 17, 2019 7

Build Business Kingdom

Do you think your business is dignified to become the next Creambell? Are you ready to take on the world of education businesses with an exclusive twist on a conventional idea? If so, you might be thinking about franchising as a business evolution strategy. In fact, you may be swayed that franchising is your route to world dominion but are not sure exactly how to get happening.

Establishing your own franchise is not a meek process and is not something that you’re going to achieve in 30 or even 60 days, with a few thousand dollars. Becoming a franchisor is a long, affluent, time-intensive process.

To help you out here, we’ve fragmented down the process of building a franchise empire into eight steps. Notice we didn’t say few easy steps, or few meek steps — there is nothing simple, easy, profligate, or quick about becoming a franchisor. But, if you are poised in your brand, have a profitable business, have accomplished an exhaustive due diligence process, and own the right amount of capital and get-up-and-go, you just might be able to shape the next Chicago Pizza.

Before we get into the steps tangled, there is a caveat: These steps provide a summary. The exact process for to each business is going to be different, reliant on the product(s) or service(s) offered, the market, the site, growth tactics, target customers, the business model, and so on. With that being said, let’s dive in!

The Steps to Building a Franchise Empire



Ask yourself the hard-hitting questions

Before you even contemplate entering the franchising world, you’ll necessitate having a long talk with yourself, concentrating on some very precise questions. How you answer each of these will be a pointer of your readiness and inclination to start up a franchise and can assist gauge your commitment to long-term accomplishment.

•    Am I ready to become a franchisor?

This means going from running the everyday operations of your own business to control the operations of an entire franchise, from design to recruiting to assisting others in the running of their businesses. To do this efficaciously, you'll have to intensely shift your mindset.

•    Is my current business model fruitful?

Are you making enough profits to make the striking business prospect that others will be attentive in?

•    Can I easily imitate and scale my current business model?

If the achievement of a business is too contingent on a certain geographic zone or feature, on your own work ethos, or on one precise personality type, then it may not interpret well across diverse markets. You necessitate governing whether your business can be rationalized and duplicated.

•    Can I persuade other people to buy into my business?

Does it have that “sexy” factor that will set it separate from others in the market?

•    Can I show proof of a robust return on investment (ROI) to possible franchisees?

Does your fiscal model replicate latent profit growth for future franchisees?

•    Am I dedicated to providing value?

Are you attentive in growing your franchise business the right way, or are you just worried about hitting a target number without supporting franchisees as they shape their businesses up? Make sure your objects line up with your offering.

•    Do I have the money to fund the startup of my franchise?

Starting a franchise is not economical. The money will go toward lawful documents, training programs, marketing materials, manuals, recruiting novel franchisees, operating outlays, an attorney, and feasibly a franchise consultant.

Your answers to these questions will aid determine whether you’re equipped for franchising, or if you want to do some initial work on your outlook and your business before going any further.

Recognize your business

Documenting structures, procedures, recipes, distributors, suppliers, publicizing and advertising tactics, branding techniques, aesthetics, accounting, lawful issues, and of course, processes. You must be bright to turn all of this over to a franchise, in one arranged package, so they can imitate your business from day one.

Settle your business model

Govern how you are going to structure your franchise business. Here, you necessitate to consider:

•    The franchise fees
•    Royalties
•    Distribution
•    The training program and gears
•    Publicizing
•    Advertising (including fees)
•    Region
•    Terms of the franchise treaty
•    Product sourcing

Formulate your legal documents

At this point, it’s time to shot your Franchise Disclosure Document, which you must complete in order to fulfil with federal guidelines regarding the sale of franchises. Therefore, you will necessitate working with a franchising attorney to make certain it is complete and accurate.
You will also necessitate preparing a franchisee operations guide, a training manual, and a franchisee license treaty.

Plan your growth

Most effective growth strategies will be normal for the brand. When a business has a super-aggressive progress plan that is idealistic or infeasible, that’s when they get into anxiety. Having a plan that is suitable to your business, your customers and your market will set you on the finest path toward accomplishment. Putting growth tactics in place will also help estimate your resource allocation. You’ll want to be bright to emphasis on your current franchisees while still upholding the overall growth of the brand.

Choose your franchisees sensibly

Not everyone who shows curiosity in being your franchisee will be a decent fit. Remember, eagerness does not equal competence! Make sure you have a procedure in place to screen your potential franchisees in order to govern whether they will be a decent fit for the brand and your business model. After all, those who are the finest fit will have extreme chances of accomplishment. Inspect the business acumen, contextual, and experiences of each contender, in combination with their eagerness and drive, before making your picks.

Set boundaries

No matter how systematic you are in your documents and actions, there will be changes from one franchisee to the next. Each franchisee will bring their separate personality to toil, and with every franchise unit, the employees will be diverse, as will the market and customers. You'll necessitate deciding how much flexibility each franchise owner is permissible to have while still upholding the integrity of the brand and obeying to its business model. Keep in awareness that the franchisees will be running their personal businesses, so it’ll be essential that you find a practical balance between your margins and their input.

Support all franchisees

If your franchise is vending like hot cakes, it is significant to have a tactic in place that will ensure you’re offering the identical level of support and consideration to your first franchisee as your 100th. It will be alluring to focus on recruiting novel franchisees and getting them through training to inaugural day but don’t overlook the ones who have been in business for two to five years and still essential support from the head office. They are as significant to the system as each novel franchisee and can be your finest recruiters, so it makes sense to keep them pleased.

It's Worth the Slog

With these steps, we’ve inspected just the very tip of the franchising iceberg. Each step includes dozens of minor steps and requires a lot of stint, resources, and courtesy. You’ll need to convey all steps out with caution and meticulousness, all the while running the everyday operations of your existing business. This may sound grim, but for those who persist and are devoted to doing whatever it takes to see their franchising dreams flourish, the payoff can be superior to you’ve ever imaginary. One day, you may see your own brand functioning in locations all around your province or country.

Conclusion

Building business kingdom sound so good. At Frantastic, we help our clients in building the kingdom of their business through franchising by providing ample of opportunities across sectors.
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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.




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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.

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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.



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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.


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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.

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Wednesday, 24 April 2019

How To Prepare In Advance For Entrepreneurship?

April 24, 2019 0


At the advent of their careers, many people aspire to be entrepreneurs. To be your own boss, to make your decisions and to be assured that the profits earned from your hard work proceed to your own pocket is the stuff of many young dreams. But a few years down their career, most people give up this dream, a few give up after meeting failure and only a handful live their dream. The main cause for this is the fact that most aspiring businessmen have failed to prepare for it. Though ultimately rewarding, the journey of entrepreneurship requires a lot of preparation to ensure success. Let us have a look at a few preparatory steps that an aspiring entrepreneur can invest in.

Education: 
A lot of resources such as time, money and energy are invested in education. Though all businessmen do not have education relevant to their business, most admit that education helps to a great extent.Those who are lucky enough to have realized their calling early in life should go for relevant education and those who have passed that stage before deciding upon entrepreneurship should consider the skill set they have been equipped with by their education. Any significant gaps in learning and understanding should be filled in by putting in extra hours of study. Nowadays many online and part-time courses are available. Today knowledge is a crucial resource for business.

Diverse work experience:
A person that starts a business will have to assume many roles right from the Chief Executive Officer to a salesperson. Depending on the initial capital investment, one may or may not be able to recruit trained managers for various functions. Even if experienced managers are appointed for specific roles, there will be a need to assess their performance outcomes. This kind of evaluation has to be accurate for a new business to thrive and grow. An investor will be able to assess performance in various functions in a timely manner only if he has a basic understanding of various functions. For example, digital marketing, supply chain management, recruitment, and operations are a few functions where actual on the floors experience is inevitable. Before investing in your own startup try to gain knowledge in diverse disciplines by making sure that you work with different verticals over the years.

Working in a startup that has just started or is still striving to gain a stable business gives one a feel this life. The long hours of dedication, attention to every detail while multi-tasking and handling stress is not for everyone. You will be able to mentally prepare yourselves for the challenges to be faced in the future and also learn in advance the mistakes to be avoided.

Savings:
Any business proposition involves some amount of investment and working capital. Though loans can be availed, interest rates are often high enough to make business unviable. Also to be foreseen is the fact that some cash flow cycles are longer than others depending on the business. Though profits will take time to be generated, expenses will not wait and you will have to survive the period. Due to these reasons, it is extremely important to save money while working before starting your own venture.

Mentor team:
A startup makes many mistakes before arriving at a workable business model and finding a stable business. There are also many challenges to be met, problems to be solved and a lot of help and guidance is needed. A person who has already gone through this period can prove to be invaluable in guiding and offering mental support. It would be great if you can find a mentor who understands your goals, needs, and limitations. Often it is very difficult to find a single person with so many qualities. For this, a person should not have only one mentor but an entire team of mentors. This will help to widen the range of input and cross-check across diverse opinions.



Support system: 
Make sure you have good relations with the people in your life. They may be your family, friends, neighbors, landlord, investor, employee or clients. There are challenges coming up all the time in a businessman’s life and one needs financial help, time and patience from all stakeholders and associates. Maintaining good relations will help you sail through difficult times.

Networking:
Much before you actually venture out, start networking with people in the business. This will help you make important contacts to work through important deals, finance, talent acquisition, finance, and new business-oriented services and products. Many of the meetups for startups and business associations have regulars talks aiming to help improve the skill set and strategy. Interacting with others also gives an opportunity to sound your ideas on a wider platform.

Business proposition: 
A business is based on a core product or service.  To launch your own business you need to check if you have a good idea or are willing to take advantage of the existing market for existing products or services. Working out a new product or service will require immense work on the business models. Franchise business is an easier way to be a businessman with tried and tested business models that are replicable and eventually lead to growth.

Research:  
New ideas are always exciting but remember that it is not always profitable to run after a billion-dollar idea. Often it makes more sense to solve problems for existing services and products. If it is a new idea make sure that you put in every possible effort to research and refine the idea. Also, ensure that the timing is right for a good idea. Strategic analysis of a business from various points of view should be made using SWOT analysis, PESTLE analysis, and BCG matrix. If you are honest to yourselves about all the external factors, you will gain a more or less correct picture of the business scenario. If necessary, one should also invest in taking guidance from a management consultant.

Planning:  
It is no wonder if you have been told to stop planning and start executing but the truth is that the more in detail you plan, the less the hitches to be solved further on. Even a very good business concept can fail due to a lack of planning. A good way to plan is to make a flow chart or organogram linking all the stakeholders involved right from back end supply chain to after sales customer care. Once you have an established clientele, the need to scale up in time will present itself. Angel investors will be interested and funding will flow but consider all terms and conditions carefully. Investors are often driven by valuation. This behavior may drive you off track and you may lose focus or control of intrinsic value in the race for valuation. Plan well in advance the future course of your venture.

Marketing: 
First of all, define your market by answering questions such as:
Who is the customer?
What is your USP or Unique Selling Proposition?
Where is the customer?
How are the products or businesses to be accessed by a consumer?
The answers to these questions will help you to know your market and in turn, be the guiding beacon for the marketing team.

Execution:
Once you start execution, be brutally honest with yourselves when identifying problems and bottlenecks. Do not let anything stop you from correcting a mistake no matter it affects your ego or dealing with a parasitic business relationship. If a strategy or partner is not working, do not stretch too much in the hope that the course will smoothen out by itself. Have frank and honest conversations with all stakeholders and work out alternatives before it is too late. Do not try to do everything yourself all the time. Recruit personnel early enough to develop mutual understanding and allow them a period to settle down. This will train you also to work as a manager and get the job done.

There will be no end to prepare yourselves so design a timeline for your project. Remember there will not be any boss to review your progress so be your own boss and better be a strict one. Adhere strictly to the timeline and trust minor things to work out without getting hyper. Make a resolve to let nothing break your spirit and take the plunge.

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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.
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