This Economic Times article gives tips on how to be a successful entrepreneur through franchising.
Frustrated with your job? Feel like strangling your colleagues? Want to push your boss from the top of a cliff? Cry buckets of tears when you get your pay cheque? Want to start your own business?
If you have answered in affirmative to any of these questions, here's fast and safe way to be an instant and successful entrepreneur. No, we aren't spinning the spiel of a swindler. As thousands of Indians have discovered, there is a less risky way to start a business than setting up your own venture: franchise. The franchise industry has opened a wide window for many would-be entrepreneurs, who have the zeal and the zest, but not enough business expertise. Buying a franchise lets you be your own boss in any field that you are passionate about without the added worries that is a given with your own venture—ideation, brand building, infrastructure, legal problems.
The best part? You get help to start a business anywhere, at any age and with any budget. Bangalore-based Lourdu Mary retired as a primary school teacher five years ago. "However, I got bored within a few years, but finding another job at my age was impossible. When I came to know that I could open my own pre-school with just Rs 3.5 lakh, I jumped at the opportunity," says the 65-year-old. The company, My Apple School, provides the curriculum, support and training to her staff.
The supporting appeal of the franchise industry has been the reason for the surge in its popularity in the past decade. Currently worth Rs 82,500 crore, it is estimated to grow to about Rs 2.91 lakh crore by 2017, according to the Indian Franchise Report 2012. The main reason is that both domestic and international companies want to expand their footprints, but don't consider it a viable proposition to do it on their own due to operational and financial pressures.
They prefer to look for partners who can invest to run a branch of their business. From international brands like Domino's and Dunkin' Donuts, to domestic ones like NIIT and Naturals, a lot of companies are opting for the franchising model. It's estimated that the franchise industry is growing at a rapid pace of 40% a year. One of the biggest gainers of this warp-speed growth is Ravi Jaipuria, chairman of the privately held RJ Corp. He is India's newest billionaire, with a fortune estimated at Rs 8,250 crore, and has built his fortune as a franchisee for brands like Pepsi, Pizza Hut, KFC and Costa Coffee. So, do you want to get on this super-fast bandwagon to business bonanza?
Where should you start?
The first thing you need to decide is whether you are fit to be a franchisee. Don't be blinded by dreams of instant riches or assume that because you have a ready-made business plan, you can relax in a hammock and soak the sun. Running a franchise will require as much hard work and effort as running your own venture. Says Gaurav Marya, president of Franchise India: "A franchisee needs to understand that while he has bought a brand name, and with it the potential clientele, the onus is on him to grow the business. It's not an 'invest and forget' option."
The business also comes with stringent conditions about how the workplace will look, the products that will be used, the programme menu that will be implemented, the royalty that will have to be paid, and so on. Individual innovation is rarely possible and thinking out of the box could be frowned upon. So, carefully study the pros and cons before you sign a franchise deal.
Once you've made up your mind to buy a franchise, you'll have to decide what exactly to do. With almost 3,700 companies in about 15 diverse sectors, from food and footwear to furniture and furnishing, the choices can befuddle you. Go through the story, 'Which franchise is best for you?' to figure out where you should dip your toes. On deciding where you want to start from, you can narrow down your choices. Marya advises that if you're a newbie, it may be better to start a business in the field of your professional expertise. "When you understand the intricacies of an industry, you are well-equipped to handle the daily business and any crises that may crop up," he says. Also, you will be in tune with the realities of the sector, which could help you identify the right company to partner.
Angad Singh followed this tenet when he moved back to India after working for a couple of years at a hotel in Melbourne, Australia. His father, Ravinder Singh, had taken VRS from a bank, but wanted to continue working. The father-son duo invested their savings to buy a franchise of New York Pizza and Fried Chicken in Chandigarh. "Both my father and I are passionate about food, but neither of us had the expertise to set up and run a business. Taking a franchise was the logical answer," says the 26-year-old.
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| Image Source: articles.economictimes.indiatimes.com |
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