Starting a Business -IV: Start a Franchise Business

start a franchise business

A franchise option is best for anyone who has cash to invest in an already successful business. If you are not worried about implementing your own ideas, then you can start a franchise business of your choice. Whether you want to open a food chain franchise like McDonalds, or a popular brand like Burberry, the choice is yours. You will have to give an initial fee to open a franchise of an already existing successful brand.

You however, do not have a say in implementing a business model of make any modifications to the franchise business. All the equipment, and working model will be explained to you and you can reap many financial benefits of being a franchise. This a very low risk venture as you are setting up a well established, profitable business, where only a certain percentage of the royalty fee goes to the original franchisor. If you only want to gain profits by managing an existing business model, then starting a franchise business is for you.

  • Why start a Franchise Business?

If you do not wish to start a business model of your own and test the waters of managing a business, then you can start the franchise business, as you don’t have to go through the hassle of finding funds or investors for your business. You can enjoy the profits derived from a franchise, as you will be able to get more than ninety percent of the profits that you make from this kind of business, while only five to seven percent of the entire profit goes to the business owners of the franchise.start a franchise business

You will be running an already establish business, so you don’t have to worry about getting customers to your business. Everything will be made available to you. You will only have to incur cost to go through initial training to run a franchise. Everything else will be a ready made business that will be made available to you. You only have to hire staff and manage this business under the strict guidelines and compliance of the franchise owner. These are the important things that you should remember while learning how to start a business in India.

  • Pros and cons of starting a franchise business?

The only disadvantage you will have here is that you will not be implementing any of your own ideas or modify the business model as per your wish. You do not have permission to even change the uniforms of the staff that are assigned by your franchise owner. The biggest advantage of having a franchise is that you will earn maximum profits with minimum investment for training and equipment. You will be provided with everything.

  • For whom Franchise business is better than a new business?

If you already have some cash to invest, and you are willing to double that without dilly dallying about how to fund your new idea, then you can go for the franchise business instead of the new business. You must do a research on the marketing and profits of all the existing franchisers that interest you and approach them with a plan.

If you are not passionate about any business idea, while learning how to start a business, and only want to earn profits and do not mind operating under the guidelines of your franchisor, then you can start a franchise of any brand of your choice. But if you have a burning passion to turn your ideas into a business, then starting a franchise business is not for you.

  • How to find Franchise business opportunities suitable to you?

You have to know your own capabilities and research the market of the product that interests you. You will get a list of franchises and an in-depth report on their profits and you can choose from them which one is more feasible to you. You can also analyze your strengths and weaknesses in handling a business and also use your previous experience of handling franchises before deciding on a franchisor. If you have experience handling beauty brand franchises, then you can look into these brands and find a franchisor to help you establish this business.