Risk free business opportunities for HNIs

Franchising today is no longer a small business play and there are one too many opportunities present for large investors who want to do business at a big scale and also don’t’ want the startup phase scuffle. High net worth investors (HNIs) would typically fall in the category of business; looking at an investment of a crore and going on upwards to hundreds of crores and would typically be interested in master franchise, multi-unit, area development route for a particular region or country for specific period of time.

The sectors which are hot for HNI’s

Today the best suited sectors to make such investments are F &B (food and beverage) covering Fine-dine Restaurants, Entertainment Lounges, Fashion and Lifestyle (Multi-brands outlets or designer studios), Education (K-12 Segment), Retail ( Jewellery, Luxury brands), Hospitality (Hotels), Automobile (Auto dealerships/Pre-owned Car market), Real-Estate, health & Wellness(Salons/Spas ,Gyms and Fitness equipment). 

High Net worth Individuals in India – A growing community 

Leading business Reports suggest that India is home to as many as 7,850 high net worth individuals whose collective net worth is $935 billion. A city-wise analysis shows that more than 90% of India’s Ultra-High Net worth Individual (UHNW) population lives in top 10 cities including Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Chennai, Ahmedabad, Pune, Gurgaon and Jaipur. Despite India’s modest 1.6 percent population growth, the country added more UHNW individuals (120) than any other BRICS nations in the past 12 months. Further ,The number of Ultra High Net worth Households, with a minimum net worth of Rs 25 crore is expected to triple to 2.86 lakh in next five years with a five-fold increase in their net worth to INR 235 trillion. And the HNIs will be double in number by 2015 to over 4 lakh with a collective wealth of USD 2645 billion. If we go by the statistics, India has a rapidly growing HNI segments across the world that currently contributes approximately 1.2% to the global HNI wealth.

Business in the Fast lane

When equity markets were strong, Indian HNI’s parked more than 31% of their savings in equities. But today, when dividends are lower, Indian millionaires are parking their funds in novel, lucrative consumption projects. The vigorous entrepreneurial activity by HNIs in India in the last 4-5 ears, has not only taken the Indian economy to the next level but has attracted global Brands to seek partnerships to enter Indian market with HNI Business owners. Given the diversity of Indian geography and strict FDI regulation in sectors like Retail, The businesses model usually focus on taking the master franchise rights for a country or a specific region or rely on multi-unit franchise investments

On one hand large net worth investors like to exercise a great degree of caution when it comes to their investments but on the other hand, they are also pro-growth and it is also many matter of year or two the Brand flourishes across the Indian market. 

Master franchising and multi-unit franchising is playing a big role in business alliances in India and now forms almost 10% of the deals of the franchise industry. This development is also supported at ground level by investments by Indian franchisees, progressing from a single business unit to becoming multi-unit franchisees by acquiring a second, third or even more outlets in the same network. Many master franchisees that started out owning just a single franchise are now controlling whole regions and have become a mini corporate in their own right, generating seven figure incomes. A few successful early movers with multiple franchise brands in their portfolio have even taken their business public.

Forming lasting partnerships

The HNI investor has much to gain and much to lose in this high growth- high investment partnerships. The foundation is sound groundwork and making the relationship worthy for both the parties. A thorough market analysis ,research to understand the market trends, consumers’ consumption patterns, demographics, with an eye on real estate rentals and looking at preferred retail distribution channels is the first key to getting the relationship right. Definite and clearly defined legal agreements, growth blueprints, investment cycles and relationship dynamics are what make the business partnership lasting.

Big Rewards: PE Investors – HNI game

The Master franchise or multi-unit business model are highly capital intensive because funds are needed to achieve continuous growth. From restaurants to retail to consumer services, all large franchise companies are tying up with private equity are creating next level of mega business growth ,going on to an IPO . Successful large franchisee owned companies, particularly large territorial operator offer both well-advertised brand names and predictable revenue streams. This is why many franchise acquisitions typically carry high multiples often bring multiples of six to eight times EBITDA.

Franchise India, a leading franchise consulting company assists HNIs through its multiple business streams, which are looking for high investment, high-reward business growth opportunities. Right from exploring national and international Business opportunities that are spread across sectors and to the last mile connect of getting a beneficial deal for both franchisor and investor.

Mission Health aligns with Franchise India for expansion

Mission Health, a renowned multispecialty physiotherapy centre has aligned with Franchise India to increase their business network and expand their operations across India.

The brand offers two models (flagship & smaller format) to start a new centre. For centre start up it requires investment of approximately Rs. 2.5 Crores & 4500 sq. ft. Area for flagship format & Rs. 1 Crore & 2000 sq. ft. Area for smaller format.

The fitness industry in India is highly underpenetrated market compared to several developed and developing countries in the world. The wellness industry is expected to cross Rs. 1 trillion mark by 2015 making a significant milestone in India. Fitness & slimming market in India is worth Rs. 60 Bn in 2012 and expected to reach Rs. 115 bn in 2015 of which fitness services comprise of more than 50% growing at CAGR of 25% . As growing is the fitness industry, also increasing are the injuries that occurs in local gyms due to poor knowledge and experience amongst trainers & instructors. Then medical gym concept counteracts this as there are no instructors but only specialised physiotherapists in medical gyms.

THE SPECIALISED PHYSIOTHERAPY IS NEWEST CONCEPT LAUNCHED FIRST TIME IN INDIA BY MISSION HEALTH WITH WORLD CLASS NON SURGICAL SOLUTION FOR NECK PAIN, BACK PAIN, SCIATICA, SHOULDER PAIN, KNEE PAIN, HEEL PAIN, SPORTS INJURY, RHEUMATOID ARTHRITIS, STROKE, ATAXIA, PARKINSONISM, SPINAL CORD INJURY, POST REPLACEPENT OR ARTHROSCOPY etc.

Mission Health has been successfully running for more than 7 years with 4 centres and boasts of more than 100 physiotherapists, 30,000 patients medi gym clienta & 20000 specialised physio patients with 97% success rate.

The brand focuses on generating business by succeeding in delivering beyond the expectations of its patients/clients today.

It will provide extensive support to the news centres like set up, operations manual, technical support, procurement, admin support, quality control assurance, training programme, promotion & events.

Dr. Aalap Shah, FOUNDER & DIRECTOR, Mission Health said,” “People who are passionate about health are welcome to be our partners. THERE IS MAZING SCOPE IN THIS FIELD AND GROWTH IS ALSO UNBELIEVABLE. We give them complete support in terms of technology, training, marketing, service enhancement and upgradations from time to time.” 

Commenting on the same lines, Ms. Sonya Chowdhary, Director- Franchise India Brands Ltd said,” our aim is to facilitate aspiring businesses in their expansion plans and give them all the best possible resources to do the same and we look forward to take Mission Health to new heights.”

Lunch Box to open 6 more outlets through Franchise India

Lunch Box, a hygienic, nutritious & vegetarian Chennai based tiffin services brand is looking forward to start 6 outlets by March 2015. Franchise India , a pioneer in franchise industry is facilitating expansion.

The brand is known for its skilful chefs experienced in variety of cuisines, a reputed nutritionist who designs menu with the correct amount of nutrients and calories as required by each age group, hygienic, centralised kitchen certified by FSSAI to provide preservative free healthy pure vegetarian food. It has capabilities to deliver food by 630 in the morning to to any destination like school, office, college, residence across Chennai. To start Lunch Box franchise, one needs investment of 10-15 lacs & 500 sq. ft area.

Mrs. Kripa Dhevi Dharmaraj, Managing Director, Lunch Box said: “People who have a passion for food and have business accumen are welcome to be our franchise partners. We give them complete support in terms of marketing, product enhancement and up gradations from time to time.”

Commenting on the move, Ms. Sonya Chowdhry, Director, Franchise India Brands Limited said, “We take pride in associating ourselves with Lunch Box for their expansion through the franchise route. Franchise India has been instrumental in the expansion of several brands across various industries and categories and I am confident that the franchise opportunity with Lunch Box has a great value proposition which our company can offer to our business buyers hungry for good opportunities.”

About Franchise India

Franchise India is Asia's largest integrated franchise solution company since 1999, with an absolute authority on Franchising, Licensing, Retailing, Real estate and Business Brokerage. Franchise India has helped over thousand of brands in their channel expansion plans through franchising, dealership, distributorship and in turn has assisted over hundred thousand investors in advising them with right business fit . The company has worked with several major corporate houses and brands over these years like, Aditya Birla Group Mahindra Group, Reliance, Tata, Videocon, Gitanjali, Levis, JK Tyres, Lakme, Adidas, Euro Kidz, The Apollo Clinic, Chhabra 555, Sarovar Hotels, Next, Apollo tyres, Nokia, Coffee Bean Tea Leaf, Skechers to name a few, through media, advisory and brokerage. 

Franchise India has created its own niche as the pioneers of franchise industry and a small business authority. For more details log on to www.franchiseindia.com & www.franchiseindia.in

Tired of your monotonous job... Start your own business...

Are you a professional in your respective field who is aspiring to own a business but is clouded with dual thoughts whether it will click or not. Then, Franchise India offers a solution to your dilemma that will help you to make a decision in buying a right business that suits your aptitude.

Buying a business is always considered complicated as it brings along with an elongate course of action with substantial number of steps involved and much to consider, especially for anyone who has never bought one before. For a debutant in the business arena, nothing beats franchise business model as it is a proven business model that will help you being a first time business buyer.

Why franchising suits best for professionals?

Franchising helps in selling goods and services that are well established in the markets. The franchise business model offers instant name and recognition among the customers and provides regular training and support that can yield great returns. The franchise model is apt for the professionals who are master in their respective fields. Franchising would assists first time business buyers who are also professionals, to run a business strategically and reduces their investment risk.

Franchising- a solution to all the challenges

After starting a business, its maintenance is a challenge for an entrepreneur. There are many standard challenges that every business faces. These include things like hiring the right people, building a brand and so on but apart from these there are some other challenges that are faced by potential buyers who have spent their whole career in a corporate office and have grown out of experience in a particular field.

Speaking to numerous entrepreneurs, who have jumped into the franchising pool after spending numerous years in their jobs, have come across some common challenges which include time management, brand building, funding, no support and training.

Even though, some entrepreneurs are professionals but they tend to commit mistakes in their businesses due to some common reasons. Here are a few points to elaborate that why should a professional opt for franchise route rather than starting his own venture.

Why choose franchising than building your own brand?

Funding: Financial backup or fiscal assistance is one of the vital parts to start any business. Especially for the first time buyers, it is a challenging phase to overcome. All professionals require at least a small amount of money to kick off their business. Despite one being professional in its respective field, lack of funds can put ones entrepreneurial dreams on the backseat. For franchise buyers, risk is less as the concept and brand is already established.

Marketing & branding: No brand or business is complete without its branding and marketing. After starting a business or a franchise, it is important that the entrepreneur or the franchisee makes optimum marketing of the brand it is associated with to gain the attention of prospective consumers and clients. For entrepreneurs who take franchise of a brand are on a safer side as majority of franchisors offers marketing support.

Time management: Time management is another important element to think upon before taking up any business. Managing time and pertinent allocation of work among the staff is key to success as this would save the time, energy and the money invested to run a business smoothly.

Support and training: Support and training is the backbone of all businesses. Franchising business model saves the franchisee of training the staff himself because franchisors keep their franchisees and staff trained and updated on regular basis.

Steps to success for emerging entrepreneurs

1. Do a lot of research about the brand/product you are investing into.

2. Organize your finances.

3. Work on determining what type of business will thrive from your strengths and not suffer from your weaknesses.

4. Seek professional advice from a qualified accountant and attorney. Consult franchise consultants like Franchise India. Franchise India offers business support to entrepreneurs and first time business buyers in seeking best franchises of their interest. Franchise India also organises Business Opportunity Shows (BOS), Franchise and Retail Opportunity Shows (FRO) for entrepreneurs looking for business opportunities pan- India.

5. Unless you have a wealth of experience buying businesses, then educate yourself about this process. Learn as much as you can. When it comes to investing in your future, you can never know too much!

Business platform for NRIs, for profitable investing in India

India being one of the most prospective markets for foreign investments, it brings in dynamic business ideas and vast investment through NRIs, PIOs and Foreign entities.

Over the past several years, the policy and procedures regulating and governing the inflow of foreign investments into India have been progressively liberalized and simplified. The initiatives taken in this regard have resulted in significant inflows of foreign investment in almost all areas of the economy, except a select few, that continue to remain reserved for strategic reasons.

An NRI refers to Non Resident Indian, meaning a person who has gone out of India or who stays outside India, in either case for or on taking up employment outside India, or for carrying on outside India a business or vacation, or for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period. It basically refers to a person residing outside India who is a citizen of India or is a Person of Indian Origin (PIO).

There are various Investment options available to NRIs & PIOs for investing in India. They can go the Foreign Direct Investment (FDI) way, or register as a Foreign Institutional Investor (FII) under a portfolio, or register as Foreign Venture Capital Investor (FVCI) under the Venture Capital route or as a holder of American Global Depository Receipts (ADR) and Global Depository Receipts (GDR) under the ADR /GDR Scheme etc.

Let’s take you through some of the viable ways for NRIs to enter the Indian business scenario.

Finding the right partner:

One of the well-known ways of doing business in India by NRIs/PIOs is by forming a partnership company. Partnership is a low risk approach, which helps enjoy steady returns with guarantee in your principal.

If you don’t have a permanent address in India, it would be difficult for you to run a business all alone without a second supervision. Here lies the importance of forming partnerships. A partner must be selected based on track record, sense of integrity among other important aspects. It is better not to establish commercial relations with friends and relatives.

Open a Liaison Office:

If you are an NRI looking to start a business in India for long term steady returns to your investments, you can start a liaison office of a foreign company in India.

A liaison office in India can act only as a communicative.