Thinking about becoming a franchisee is a big step, but opening the right outlet which will provide a lot of profit is a bigger leap. A lot of key steps are involved in developing a profitable franchisement in India. In a Franchise Business agreement, a franchisor lets a franchisee the legal rights to run a business under their banner of business by using the strategies and models and products provided by them.
Franchising is a marketing concept that is taken in by an individual or any organization, popularly known as a franchisor as a plan to expand his business. It’s a type of license that grants a certain individual or an organization who is called a franchisee, to sell a certain branded product under his name. A business of Franchisor and franchises!
According to a survey, the franchise industry in our country is around $50 million worth running and supporting the Indian economy at a large stake. The privatization of sectors helps the customers to opt for diversified products available throughout the country. And this leads to more scope for business and franchising.
As unemployment is hiking up, more people from rural backgrounds are traveling to cities to start their own business either a franchise or a start-up. 35% of Indian people who are the first-timers in the sector of doing business have opted for franchising business in India due to lack of proper funds to start-up and small businesses.
As more and more people are becoming self-conscious in India, more options for franchising a brand and earning a huge profit are being created here. As a result, a lot of people are earning their livelihood by becoming a franchisee and fulfilling their dreams!
Steps to developing a profitable franchise business:
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Opt for a business that can be franchised easily everywhere
Research for the type of business you want to franchise before signing the franchise agreement and before paying the initial investment. For example, if you open an outlet of technological products in rural areas, your business won’t buy any profits due to a lack of technical know-how among farmers and other rural sector professions.
But if you open up a franchise brand with food or beverage or beauty products anywhere, you would be able to promote more among people, be it rural or urban.
Some businesses are more suitable for franchisement than others.
You need to be more credible and you need to have unique ways of promotions and selling.
To see if your business is feasible for any particular location, try to put your business model for an experimental test for a year. If you earn more profit than your estimations, then go for it.
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Strategize your business models
Once you are aware of your business model and have made surety with the brand you want to work with, start to strategize your business. Chalk out how you will like to perform and operate and you will upgrade your standards. Set some goals and work upon achieving them. If you want to expand your business to more than one outlet, start researching the best suitable locations and markets. Research the desires of the people and plan your advertisement accordingly focusing on the weakness of the inhabitants of your brand outlets. If you are unable to strategize your business, hire a consultant or a business advisor for the purpose. They will help you in creating a business franchise model perfect for you to achieve your goals.
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Take help from a franchise consultant
A franchise consultant can help you establish your dream of franchising a product and gaining maximum profits by showing you the correct way and methods of franchisement.
Selection: A franchise consultant is a highly expert in helping you to find the right franchise that suits your purpose.
Specialized knowledge: the expert can guide you in a selection based on your skills, capital size, aspirations and goals. He will also help you in legal, operational and strategic clogs.
Investigation: a franchise consultant will run a background check about the company, the history of the promoters and the potential of the market in holding profits in future. A franchise consultant calculates each step carefully for you.
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Payments
For setting up a franchise store in India, you can charge a royalty fee as the cost procured by setting up the outlet and training of the franchisee and other personnel. To procure the royalties you can either charge a
- Percentage fee: the franchisee pays a portion of their revenue to the franchisor through which he earns major revenue at the end.
- Fixed fee: every month the franchisee pays a certain amount of money to the franchisor. This option poses to be risky for the franchisee because if any month the sale doesn’t meet the requirements then the franchisee has to pay the fixed amount from the pocket.
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Provide excellent training to your franchisee after recruitment
Create an idea of how you will train your recruited franchisee in a way that will not only make him adept in knowing and operating the business but also bringing in more revenue than others. Structure a selection process and provide scope to that franchisee who is more optimistic and has basic technical know-how of certain things. Do not consider only their skills and talents and experiences before hiring, but look into their personality too.
A franchisee with a proper work ethic and character will bring more luck than others. Provide the special knowledge that they need to run the business smoothly. The more managerial experience and skills they show, the more chances of the prosperity of your franchisement would have.
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Promote your franchised brand in the market
After building your outlet, testing your concept among the locals, hiring personnel the major work comes, that is the promotion!
Your main target will be having a bunch of customers immediately after your opening for that you need to set the best brand promotion technique. You have to apply all the means that would promote brand recognition. Customer relation franchise software will do well for promotional situations. Unless your brand gets well recognized by the market, the chances of your prosperity are bleak and gloomy.
You can hire a well-known advertising agency to suit your needs who will cast your branch outlet into different media channels. You can also hire a web developer and a printing agency to promote your franchise both on social media in other online channels.
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Celebration time!
After all, has gone well, it’s time for a party!
All the departmental heads and the clients and key executives meet on this day and celebrate their first step victory of setting up the franchise. The journey is long and it’s just a beginning. A grand opening will attract many customers if you provide gifts and a promotional video regarding your business and how the customers will have profited from it.
Arrange for corporate trainers to help you manage the kinds of stuff on an opening day. Every franchiser does a grand opening not only for promotion but also for creating goodwill among the buyers and sellers.
What are the key features that most profitable franchise businesses have?
For a franchise to be most profitable in the Indian market, one needs to have a set of factors that will help it stand apart from the rest of the business firms.
- The franchise brand should have a strong and efficient process that can satisfy the desires of the customers
- The product should be adaptable to the variety of customers and their needs
- The products should be in trends with modern time and continue to be in the upcoming future
- The brand should mentally connect with the customers and click with their emotions
- Some of the profitable top franchise business models in India are:
- Fast food industry
- Child education industry
- Fitness industry
- Technological industry
- Health industry.
All the top franchise outlets have a few things in common:
- They offer the best quality products to their customers
- They are the masters in top-shelf marketing strategies
- They prioritize helping their franchises to make more money.
- They spend a huge amount of money on promotional features
Always select a brand that has more popularity than the others. A press release of your outlet of the franchise brand can help in getting more customers. Not only do you have to be passionate about your work and optimistic about the product but also you have to be sure of what the customer really wants!
A brand loyal and committed toward the beneficiary program of the customers is bound to earn more than the franchise who thinks of only money and upliftment of self-position. A proper location and the right team to work with can create wonders in this country.
Author Bio:
Founder of Franchise Insider
Dhinal Baxi is an accomplished advisor, Creator, writer, speaker, mentor, and truly visionary person. Exploring new opportunities and researching new ideas on franchising is his true passion.
Dhinal works on brands that are futuristic, which are profitable to investors.
Dhinal is known for his acumen in the analysis of brands. Through social media, he strives to share his vision about franchises and inspire others to become franprenuer.
His visionary perspective has placed franchise insiders at global levels. And helped brands to grow on the franchise. His passion to spread knowledge on franchise business and become a trusted advisor partner to brands and investors is the only mission of franchise Insiders.
