A Franchise Is A Good Way To Venture Into Entrepreneurship

Franchising is a simple business model in which the company gives you an exclusive right to use its brand name, business model, and products for a given time frame. In order to gain this right, you just have to invest some capital and sign a contract by agreeing mutually to all terms and conditions. This business model is very easy to run and manage as you just have to gain the franchise of a business instead of starting it or looking after its aspects like production, staffing, accounts, marketing, promotions, etc. Due to this, it involves less risk and high profits. In short, a franchise is a good way to venture into entrepreneurship with minimal risk.

Which are some of the most profitable Indian franchise businesses?

Due to its large population which includes innovative and talented youth, India has become a hub for the franchise business model. In addition to this, various government policies, a rise in disposable income of the people of the country, and a drive to live a high-standard lifestyle have also encouraged the people to take up a franchise that involves less risk in comparison to starting a business from scratch.

For many people who are interested in becoming franchisees, here are some of the most profitable Indian franchise businesses :

Food and beverages
Education
Consultancy Services
Beauty salon
Health care
Automobiles
Organic products
Pharmaceuticals
Ayurvedic products
Heavy machinery

How can you start a franchise business in India?

Even though franchising saves you from the hectic process of starting a business and maintaining it, still, you still have to follow certain steps to ensure your successful franchise business journey in India.

Some of the things to keep in mind when you are willing to buy a franchise and run it are :

Search for a reputed franchiser:

The first and most important step is to find a recognized and well-established franchiser who will help you gain a foothold in the market.

Determining the business model:

Before, jumping into anything, you need to make sure that where would you like to start a business operation. Besides, you also need to choose a preferred franchise business, like health care, consumer goods outlets, printing & documentation services, ayurvedic products, restaurants, etc.

License:

Even though a franchising agreement is done between the two parties,i.e. franchiser and franchisee but before that, applying for a business license from a concerned government body is a must. Acquiring a license is a lengthy and hectic process ( especially in India), so make sure you do it in advance.

Infrastructure and Staff:

Make sure to have permanent structures including offices and warehouses, that are easily accessible to the customers. Besides, you need to purchase various office supplies like chairs, tables, shelves, workstations, etc., and you must hire some workers who can help in storing and distributing the products.

Low-cost franchise business opportunities:

We have already talked about high-profit franchise businesses. Now, here are some low-cost franchise business opportunities :

Cleaning services
Disposable products
Gym and fitness-related services
Decorative items
Plastic water bottles
Artificial jewelry

Conclusion

Just because a franchise seems great does not mean it is worth buying it if you’re considering so. Do you have enough finance to invest? Look into franchise options and see what suits you better. You can therefore set yourself up for a franchise with an appropriate mindset and the willingness to put in a lot of effort.

FAQ’s

What is a franchise, and how does it work for someone looking to start a business?

A franchise represents a business arrangement where a person (franchisee) possesses rights obtained from an established business that allows him/her to adopt its brand, support, and system in order to gain a competitive advantage. It’s almost as if you are running your own store with the expertise and guidance of a larger corporation.

Why is franchising considered a good way to venture into entrepreneurship?

People consider franchising as one of the best ways to begin in business since it already comes with a guaranteed blueprint. The model here is proven, you will have your brand established already, plus all that is involved with running a business like the support will be provided by the franchisor hence it’s easy.

What kinds of support can I expect from a franchisor if I choose to buy a franchise?

The different types of support comprise training, setting-up assistance, market help, and routine advice they give as franchisors. It is as good as an angel that would love to help you grow in your business.

How much money do I need to start a franchise, and what does this cost cover?

In addition to startup costs such as a franchise fee and ongoing royalties, owning a franchise entails numerous operational risks. This amount is for the usage of the trademark, training, and assistance supplied by the franchisor. You should know these expenses so that you can afford them as a new business gets underway.

Do I have to follow strict rules as a franchisee, or do I have some freedom to run the business my way?

Although this comes with the guidelines to be followed for consistency and uniformity by franchisors, franchisees still get the chance to manage the business as they feel fit.

What are the risks associated with franchising, and how can I minimize them?

There are risks associated with franchising, much like any other business. Your business is subject to changes in the market, problems that may arise with franchisors, and other factors as well. Therefore, in order to minimize unnecessary risks, one must research the franchisor, gain more knowledge about the industry, and ensure full financing.

Can I sell my franchise in the future if I want to move on or start a different business?

Yes, many franchisors allow someone to sell off his/her business; however, in most cases, a buyer must obtain the approval of a franchisor before he/she can sell his/her franchise business. This is comparable to transferring ownership to a different person, but the new owner should maintain the criteria of the franchiser.

Interested in becoming a franchisee, get yourself registered on www.Getdistributors.com today!