Why to take up a Franchise Business in India
It often happens that you wish to get into business but unsettled on what kind of business to start. At this point you have two choices: one is to take the risk and start your own business and learn and the second is to take up a franchise of an existing business. For all pragmatic purposes, you are still starting a new business but there is someone who has worked on this model before and has proved the feasibility of the model. There is a possibility of the model not put to use but there is someone with a brilliant plan already and knows how to execute it.
Hence, taking up franchise business reduces the risk of starting a new business with a new idea.
The person who is willing to give a franchise has already put in money and efforts to bring the concept to a certain level. Hence, you can skip the first phase of learning the basics which your franchisor will brief you about. You can directly hop to the next level.
In case of businesses dealing with selling products, the company would have already put in all the hard-work and money to exhibit the product into a brand that has a certain market value as of today. By taking up the franchise of such a company you can skip the brand building phase which requires ample amount of time, money and immense creativity.
You may draw a simple comparison sheet with one side dedicated to starting up your own business while the other side to taking up a franchise business. Do put in all the investments which you need while starting your own business against that on the other side mention the investments which you need to make while taking up a franchise business. Also, forecast your turnovers in both the case and arrive at a profitability figure. Compare for yourself that whether starting up your own model seems better or taking up someone else’s franchise model is favourable to you.
Franchising is all about saving time and money and collaborating towards achieving a larger goal together with your Franchisor.