| Topic : Franchise And Retail Opportunities in India |
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Retail & Supply Chain Professionals |
Retail Professionals |
RETAIL INDUSTRY PROFESSIONALS
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Activity:
Question posted: 09 07 2009 12:56:38 +0000,
6 answers, 221 views, last activity
10 25 2011 05:55:16 +0000
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Many of my friends say that instead of starting a business on a new product it is better to start on a franchise product because it lowers the risk of failure . What do you say?
Unless the brand proved good in the market, there wont be any takers and nobody will be dare enough to come forward to take a franchisee irrespective of the offers. This is from the angle of brand owners.
From the franchisee point of view, yes it is to some extent. Risk earns you rewards. In franchisee model you will be guarded from a certain level of risk. So as the rewards. There is no chance for you to build your brand irrespective of the best efforts you put in since you are working under the umbrella of some brand.
You need to believe in yourself. You are not ready to take risk means you dont have belief in you. Your success ratio will have some limitations.
That's not always true. When starting most businesses there is some level of risk involved. A person or company has to be smart, knowledgeable and careful in any type of business deal. A person or company really needs to get consulting in this area. You have to be aware that failure is a possibility in any business deal or start-up business.
Sometimes depending on the type of product or services, sometimes it's best to just start your own company. Then you have the other times when it's best to choose a franchise product to start a business. It really depends on the type of product or services involved and the type of strategic plans that are laid out for the new venture. If and when you aren't sure about something it's best to get business consulting in this area.
~Business Consulting Services & Strategic Planning Services:
Dear friend establishing a new product may takes sometime to reach the people or sometimes fail. So to overcome this kind of risk many prefer for franchising. Taking franchise of product helps to reduce the time of promotion because they already have a great demand among the people. It also reduces the cost brand building. So to be safer it is better to go for franchising.
Lets be direct - Franchising is all about an established brand... You cannot franchise if your business model is not proven. Franchise is a path taken by established brands to grow in-organically. The key to success for a franchise is the way it is handled and the incentive that is given to the franchisee.. Is he making money or are you making the money ? If the franchisee is making money and the brand sells, there is smaller risk of faliure.
Second, the brand needs to keep evolving and be careful of copy cat brands. This is the main reason for a successful brand to fail.
Hope this helps. I have worked with a few franchises in helping them grow their model and hence my two cents..
Cheers
PM
Before starting a business, one needs to do a lot of planning and should make a proper business model which he will follow. The entreprenour should know his target customers, investing in promotion & future growth. And since you are spending your own money, Profit or loss both will be faced by you only. But being a franchise... you brand & promote other's brands. So, the risk of failure is less there.....
Starting a new business will require a lot of planning & business model needs to be developed. THe product lines ( product width & product depth )needs to determined, target market, investing in promotion & future growth. All this will have to be done by yourself alone. But being a franchise... the branding, & promotion is taken care of. Also there in no investment in product development.
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