The
popular opinion across the globe is that entrepreneurship should be fostered as
a key growth enabler in every country’s economic policy. After all, it has been
quite ubiquitous in the west where entrepreneurship is more than just about
starting one’s own business, it is a lifestyle.
Things
have rapidly changed in India too. Ever since the time when the conventional
mindset towards starting a business (being a standby option to unemployment)
broke and risk taking gradually came into play, entrepreneurship has become the
new ‘normal’ way of making a career. Normal, to an extent that today on an
average two start-ups come up every day and more than 500 every year.
As
glorious as the above statement sounds, there is another fact that might play a
spoiler. More than half of them don’t even see the clear light of the day and pack
their bags in just two-three years of time. The reason for that mishap ranges
from factors as diverse as amateur or untested business idea/plan, unknown
market presence, high unforeseen costs, lack of capital, low returns, absence
of management assistance and many others. Moreover, all this often disrupts the
aspiring entrepreneur’s work-life balance.
Franchising,
relatively small in India though answers all of the above factors as a healthy
and risk-free way out to give voice to one’s entrepreneurial passion. Franchising
is already a global phenomenon especially in the West while it is not that
small in India too. Just to give a snapshot of where franchising stands currently
in India, the market is worth around $22 billion and is expected to double in
size in the coming two-three years, growing 30 per cent annually. Moreover, a
report by Franchising Association of India and KPMG India titled – Collaborating
for Growth – estimates the industry size to quadruple by 2017 or before with an
assumption of contributing around 4 per cent to the Indian GDP by 2017 from the
current estimated 1.4 per cent.
By
definition, franchising is an agreement between a franchisee (who wants to
start a business) and a franchisor (the owner of the brand) wherein the latter
grants the former the right to his/her brand’s trademark, products, operational
procedures, IT system and marketing processes etc for a portion of franchisee’s
gross monthly sales and royalty amount. To put in right perspective following
are the areas where franchising can provide an edge to entrepreneurs in order
to ideate, start, grow and further expand their businesses.
- Brand recognition: A franchisee gets to kick off its business and ride on the back of the strong brand name and established market presence that the franchisor has. This mitigates the challenges concerning establishing his/her own brand and creating awareness and trust among customers. So a franchisee will have customers right from day one because of the reputation the brand or its products and services command.
- Business model/plan: Though most of the elements of a franchisor business model or plan are standard for all franchisees however they help franchisees to tweak it as per the location of the franchisee unit. A franchisor’s successful business model reduces the risk of failure among franchisees.
- Capital support: A franchisor also helps franchisee raise risk capital from lending institutions becoming the intermediary between lender and franchisee. The lender too extends support confiding in the franchisor’s success.
- Management support: Initial training on different heuristics attached to running the business is offered to the franchisee in order to prevent avoidable mistakes while starting up which often costs lot of unforeseen amount. Location/site selection and management support and training in an ongoing manner in terms of staff training and managing accounting processes helps franchisee to focus only on the business aspect.
- Group buying: A franchisor also enables franchisee to benefit from lower price goods through group buying from franchisor. The collective buying power of the franchisor helps franchisee save money as the franchisor buys goods and supplies in bulk.
Now
as relevant these benefits stands through franchising for aspiring
entrepreneurs, deciding upon which brand’s franchise should be taken, of which
industry and how much investment budget does the franchisee have to invest in
taking up the franchise are few areas governing related benefits.
As
a bridge or a facilitator, Franchise India helps people looking for franchising
to start their own business connect with the right brand understanding their
requirements as per the location, budget size etc. Established in 1999,
Franchise India boasts of being the first company in India to introduce and
develop franchising market in the country. The company has so far serviced more
than 1,100 brands across sectors globally and have direct presence in 16 major
Indian cities. The company caters to prospective buyers, franchisors, various
industry experts through its digital, print and events platforms across India.
The online platform www.franchiseindia.com is touted as world’s number one website
on franchising with around 4.69 cr hits and 60 lakhs page views monthly and
listing over 8,500 brands.
Through
its print publication arm, the company publishes four industry leading
magazines viz, The Franchising World, Retailer, Small Medium Entrepreneur and
Estate World.
On
the other hand, the company puts up four major shows round the year. First,
Franchise India, Asia’s biggest annual International franchise and retail show
comprising of exhibition, awards and conference. The show aims at bringing together
400+ exhibitors and more than 30,000 business buyers from India and abroad.
Second, the Master Franchise Show which annually attracts the most successful
global brands and service providers. Third, is the series of 15+ Franchise andRetail Opportunity (FRO) shows held every year metros, tier 1, 2 and 3 towns
comprising of exhibition, conference and networking. Fourth is BusinessOpportunities Show (BOS), a franchise development focused business platform to
enable like-minded prospective franchisees to communicate business concepts with
others.
The end-to-end franchise solutions provided by Franchise
India in the last 16 years has supported thousands of people looking to start
their own business in selecting the right franchise through its team of seasoned
experts having an in-depth understanding of the respective markets.
For an Free Expert Advice You May Register at the following link
or
Call Us at :
Tollfree: 1800 103 2007
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