Are you planning to start your own franchise in India? If yes, then this article is all you need to get started. Franchising in India has seen an upward trend in the last few years, as we see more and more entrepreneurs taking up the idea of having their own brand or business under a name that they trust and whose quality standard they are sure of following. While there are many advantages of starting such a business, there are also things you need to be aware of before you set off on this venture. Here we have enlisted top 10 things every entrepreneur should know before starting a franchise in India. Take a look!
1) Research the market
If you’re going to spend your life savings on a franchise, it pays to do your research. For example, if your product is coffee, find out who already sells coffee in your area and talk to them about their experience; if they say it’s hard and that they don’t make enough money from it, maybe you should try something else. If possible, get a copy of their contract before you sign up for anything—many franchisors will provide one upon request.
2) Consider your capital
Depending on how much you’re willing to invest, one of the biggest factors in your decision should be how much money you have to throw into a franchise. While many franchises start out with just a few thousand dollars, others need millions to get off of the ground. Consider whether or not you have access to these funds or if you’ll need help from investors. The last thing you want is your dream job and an unachievable monetary goal for starting it!
3) Look at other expenses
Running a franchise can cost a lot of money. Your initial investment is just one piece of that. Research how much other expenses, like legal fees and costs related to running your business will cost you before starting out. And don’t forget about sales tax—most states in America require some form of sales tax, which can put more money in your pocket if you have a brick-and-mortar store but also take up more if you run an online business.
4) What are the pros and cons of being a franchisee?
While there are plenty of advantages to franchising, as well as to being a franchisee, there are also some disadvantages that come with entering into a partnership with an existing brand. Read on to find out what they are.
5) Does franchising suit your personality?
If you’re someone who thrives under constant pressure, then franchising might be a good fit for you. But if you’re not sure how you feel about it, start small by running your own one-person business or trying out a franchise in another country. Learning what it takes to run a profitable enterprise is vital before diving into franchise ownership, so there’s no harm in trying before buying. As they say: don’t buy a pig in a poke!
6) Is there enough support?
If you choose to invest in a franchise, make sure you have full support from your franchisor. It is crucial to know what your relationship is with your franchisor and that they are available should any issues arise. The last thing you want is to be left stranded with no help if a problem arises during your launch phase. And do not be afraid to ask questions; it is better to be safe than sorry when investing in a franchise.
7) Read everything you sign!
I’ve been very surprised by how many people sign a franchise agreement without reading it. A franchise is a legal relationship where you are giving up a portion of your business to somebody else and you need to understand what that means. Even if you don’t understand everything in it, just take an hour and read through it quickly.
8) Is your business idea unique?
Finding an idea that no one else has already thought of is hard. The important thing is to find something that’s not just different, but better. If you can look at your potential competition and confidently say you know what? I think we can do better than them, then chances are you’re on to a winner.
9) Are you prepared to work hard?
There’s no such thing as a free lunch. If you want to start a franchise, and build your dream of financial freedom, you need to be prepared to do some heavy lifting. Franchising is not easy work—and it’s certainly not for everyone. Are you willing to work long hours? Are you willing to put in an extra shift when business is slow? Are you willing to read books, attend conferences, take courses and travel for training? Only then will franchising succeed for you.
10) Can you handle pressure?
It’s a crazy world, isn’t it? There are so many things that can go wrong in a small business, and if you aren’t up to handling unexpected issues, don’t even think about opening your own franchise. Before you start, you need to really evaluate whether or not your personality can handle certain situations. Put yourself in stressful scenarios and think about how well you handle them. Can you manage deadlines? Are meetings all right with you? Are decisions all right with you?