Having a brilliant idea plus the required capital to start a business is often a rare occurrence. Not many have the capital, personnel and experience to develop their ideas into sustainable businesses. For those who do not have business ideas, or simply do know what business to engage in, though they possess that necessary entrepreneurial zeal, here’s a word for you: Franchise.
Franchising is a long-term cooperative business relationship by which the owner (franchisor) of a product, service or method obtains distribution through affiliated dealers (franchisees). The franchisor provides a licensed privilege to the franchisee to do business. If buying an existing business doesn’t sound right for you but starting from scratch also sounds a bit intimidating, you could be suited for franchise ownership. The franchise business model provides you with certain advantages you may not have if you were to start a business from scratch.
Franchising reduces the risks associated with starting a business from scratch. The support given by the franchisor helps you run the business successfully, and the strength of its brand makes it easier for the market to accept you.
A franchise normally comes with well-established processes, and training and support carried out by highly-skilled professionals. This eliminates the risks associated with designing, implementing and managing your own processes.
No Need to Develop New Products
As a franchisee you don’t have to think too hard to figure out a new product or service. You get the opportunity to sell a proven product or service that the market is familiar with and consumers already want.
On the other side of the franchise coin, you can expand your business if you have a well-established brand that people are willing to leverage to start or grow their businesses. You become the franchisor. You can enter markets where you have no physical presence and do not wish to set up there physically, at your own cost. You can engage prospective franchisees to help distribute and sell your products for you while you provide support services in various forms. Here’s why you should franchise your brand.
Easy Access to Markets
You gain easy access to markets without heavy capital expenditure and also avoid the burden of starting from scratch. You also leverage on the expertise of people who know those markets.
The obvious reason is that you increase your sales as franchisees sell your products in markets and regions where hitherto you have no presence and distribution channels.
Whichever side of the coin you look at, franchise is business model you can adopt in business –to start or expand. I must also mention that, since franchise is an agreement, one that, in most cases you can agree and negotiate on the fine details, you must pay good attention to the prints. Engage an expert where you honestly believe you lack the expertise.