Establishing a business of your own may demand huge investment in terms of capital, human resource for micro and macro management of the processes and time and energy to buy the attention of the new customers and the target audience at large. A wiser way to make your mark in the market in this era of fierce competition is to take up the franchise of a well-known brand in your city.
There are many inherent benefits of the taking up a franchise or dealership instead of starting one on your own. The major ones include a ready-made reputation management system at work, complete assistance from the company experts on various critical aspects such as management and performance and an opportunity to employ your small capital in a fruitful and promising endeavour.
So, if you also have decided to take up a franchise and looking at what is the process of taking up a franchise or dealership, then here it is.
The seemingly technical process of taking up a franchise decoded
The analysis and primary decision making
The very first step towards taking up a franchise is to sit down with a relaxed frame of mind and analyse your areas of specialities, the amount you can invest and the risk factor with which you are willing to attempt and continue at least in the near future. It is essential to have clarity about your goals from the franchise endeavour and minimise the wastage of resources in the long run. The amount that you want to invest may be available with you right from the beginning but the other two parameters viz., the area of strength and the risk propensity are a bit technical and call for a thorough understanding of one’s own nature.
Identifying your areas of specialities is the most important factor, and you must be crystal clear about it before contacting any franchisor. There should also be no erratic thoughts regarding your risk-taking capacity. Since a business is full of unprecedented events and marked by unpredictability, it is vital that you are all set well in advance to contain any financial shock in the future comfortably without letting it penetrate deep through the roots of the business or affect your resilience.
Launch a search to determine the perfect franchise opportunity
Once you are done with the primary decision-making stage, it is now time to shortlist the franchise opportunities online. Reliable platforms such as Tobuz.com can help you identify the most relevant ones as per your aspirations and budget. These online platforms can make your search easier.
Talk to the shortlisted franchisors to check the suitability of the deal
Getting in touch with the shortlisted franchisors need not be a tedious task if you are ready with the proposal with all the relevant details. These details must be mentioned in a lucid manner and must involve all the elements of a perfect proposal that gains the proper attention of busy readers at the other end.
Design your master business plan as per the franchisor’s requirements
After a primary discussion with the franchisor, it is mandatory that you spend adequate time in preparing a business plan as per the franchisor’s requirements. This helps you stand out from your competitors and gain maximum out of the endeavour. Formulating a business plan is not at all an easy task and demands expert help which is fortunately available online at affordable costs.
Take the help of specialist advisers
As many technical aspects need to be covered in a business proposal, it would be wise to seek help from those who are proficient in the task. Platforms like Tobuz can facilitate the buying, selling and investing in a business through its well-laid out services. You can seek the help of special advisers in the area of Law, Business, Planning etc., and get their timely help to both evaluate the potential of the franchise and also prepare a strong proposal to be submitted to the franchisor.
Be financially ready with adequate investment capital
A strong financial base is required to kick-start a franchise. Raising investment capital from different sources such as crowd-funding, angel investors or investment companies and banks may solve this problem and prepare you for the next step ahead. The process followed by these institutions may be time-consuming, and hence, it would be wise to take enough time in hand before you think of signing the contract with the franchisor. There are also many finance companies that operate in a transparent manner online and facilitate the loan/funds disbursement if you require it for an early start. Since a franchise can start small and grow big, your immediate family members may also be a good source to borrow capital.
Sign the contract
The final step in the journey is to sign the contract and begin the new journey of being a franchise to a promising brand. Leveraging several advantages of taking a franchise of such a brand, it becomes necessary that you align all your goals with the major goals of the parent business. This certainly helps in faster growth, investment recovery and further expansion in multiple markets or segments.
Franchise: the all-new trend
Operating the franchise of a reputed brand not only saves resources of the franchisor to a significant extent but also noticeably benefits the franchise. In today’s context of fierce and disruptive business competition in the market, it is a smart and viable option, to begin with a franchise rather than starting your own business as the latter requires investments on a large scale. Brands like Domino’s Pizza, McDonald, KFC, Subway, KidZee, Khadim’s and many other operators in the food, fashion, fitness, education and other segments offer franchise opportunities.
Franchising is a welcome move for not only those who face a budget crunch and do not find themselves in a position to establish a new business but is also a wise path for those who wish to experiment with different options on a frequent basis.