Starting a business is always not an easy task and one shall cross lot of surprises and hurdles to reach the stage. Especially the Persons comes from the nonbusiness background would always think twice to kick start a business even though they have a passion in achieving something in business.
Tie up with the franchise and adopting the business is a perfect way for handling the hurdles since it’s already proved as a successful business model in the industry.
How the Franchise Business works?
Normally Franchisees buy the brand rights from a franchisor, and franchisor giving them the following minimum privileges to begin with the business.
- Becoming boss with minimal efforts and knowledge
- No prior experience is essential.
- Well-established business practices and assistance.
- Brand familiarity and Customer base.
- Minimal risk for failure.
Becoming boss with minimal efforts and knowledge
It is obvious that 9 out of 10 people could never become boss in their lifetime if they work in a government or private firms. Buying a franchise is smart way to Start the Business with minimal efforts and knowledge.
No prior experience is essential
As mentioned earlier, a well-established organization is behind you to run the business. Thus, no prior experience is essential to kick of and operate the business.
Well-established business practices and assistance
Before marketing the franchise business model to the public, The Franchisor normally invest a huge money, wide research about the market, develop the Business model, trying several combinations, fine tune the business model with the successful formula, implement the industry best practices etc.
Imagine the common man applying the above process to kick start a business, it would take lot of investment, time and there is no guarantee of the successful outcome.
Brand familiarity and Customer base.
Since the franchises brand were already known across the country, anyone could count the familiarity and customer base from the day one of the operation in the subscribed outlet.
Minimal risk for failure.
Since the business is proven out there in the market, the risk involved with the franchise buyer is very minimal. Moreover most of the risks were normally absorbed by the franchisor during the initial stages of the business development which comes in place before it goes out to the market.
- Can Realize Very good profit margin.
- Market knowhow
- Vendor liaison for raw materials and services
- Proven standard operation procedures
- Professional support around the clock
The Final verdict
Overall the franchising mechanism is a good approach to ripe the better profits with minimal risks, less efforts with hassle free operations for the business debutants.