If you are contemplating on starting
your own business and looking for right
something you must consider. There
are many reasons as to why franchise
business is a better option over others
but let us consider a few!
If you consider every business to have its own process
and that business has tried many alternatives before
finalizing the best course of action that is most
profitable; you could call this course of action the
formula for achieving success! A franchise business
gives you this formulae ready in hand without years
of trying and testing and facing possible failures!
It is indeed the minimized risk that has enabled the growth
of franchise business model in 21st century. The continued
research and development and the support from franchisor
ensures reduced risk, plus the franchise model’s ability to
survive the economic uncertainties has increased its
popularity among entrepreneurs today.
One of the crucial element on which a
success of the product depends on is
the brand name. It takes years to build
that same and is a gamble until a
business achieves the very good brand
repute. In case of franchise, brand name
is easily purchased with a cost much
lesser than it would have been if built
by the entrepreneur.
It is most suitable for entrepreneurs with
limited assets and also who are looking for
minimal financial risks. Shared costs on
many services by franchisor, such as
marketing, research, advertising ensures
optimization of financial resources, further
fixed prices provide franchisees to forecast
most accurate budgets and plan effectively
for increasing business.
Under franchise model, periodical marketing and
advertising is the responsibility of the franchisor.
For brand image franchisor too ensures effective
marketing. As most of the marketing and
advertising targets much larger audience there is
huge recognition of the product and or service at
a reasonable cost. Cost of marketing and
advertising is shared among all the franchisee
existing in a given target area making it cost
reasonable and affordable.
There is always a guiding hand that
minimizes the chances of failing to a
very great extent. Franchisors support
with guidance, hand holding and
consulting services. They are always
studying the performance and
intervening if franchisee needs
assistance in the way of business.
Training in any skill necessary is
provided to the entrepreneurs or his
team by the franchisor.
The initial days of setting up any business are very critical. The
entrepreneur has to decide on every element of business such as
assets, installation, designing of layout, process assimilation and
training the individuals in various skills. In franchise business
Franchisor guides the franchisee/ neo entrepreneur in each of
these utmost crucial decisions and gives specific skills training in
replicating the operations effectively.
Franchisor has an obligation to share intellectual property and
assist in procurement of various resources including the finances
in many cases(If agreed upon). Many franchisors aid to all
requirements through their vendors and other network channels.
So why not select the very
best business model of the
current century. With millions
of live examples available
there is no reason to hesitate
in contemplating on buying a
Indian Institute of Hardware and
Technology (IIHT) is a premier IT training
institute from India with its presence in 22
countries across Asia, Middle East and
Africa. IIHT has adopted franchise model
and has highly reputed franchise line of
over 300 centers across the world.
Visit IIHT for more information.
#15,Sri Lakshmi Complex, 4th Floor, St. Marks Road, Bangalore - 560 001. India
Tel: 91 80 6160 4545 e-mail: email@example.com