Reasons that make franchising a successful business model

franchising- successful business

Encountering the desire now and then to have your business plan as you flip through bulky files to churn out information for seniors at your mundane 9 to 6 job or in the family business is a sign that must not be overlooked if you are serious about bringing out the entrepreneur in you and looking out for great opportunity. 

Despite a strong urge to start an independent business, people more often than not develop cold feet when it comes to taking the entrepreneurial plunge.

The reasons are obvious: risks are higher, unknowns are in plenty in a new business model and profits are not guaranteed.

Besides, not everybody is blessed with the required skills to succeed as an entrepreneur.

It is natural to see more cons than pros when the idea of entrepreneurship first occurs to us.     

The apprehensions are not uncalled for. Unlike a job, starting a business means investing most of your hard-earned money without being completely certain about its future.

There are heaps of reports available on the web and elsewhere supporting the theory of how things can quickly spiral out of hand despite putting your best foot forward.

Most of the market reports suggest that only one-fourth of businesses can survive beyond 15 years as many die out in the initial years itself. 

But there are still great opportunities that can help realize your dream of owning a successful business model with minimal risks.

Over the years, the franchise business in India without investment has emerged as a top preferred option.

It would not be an overstatement to say that the latest franchise opportunities in India have actually revolutionized the business world.

With a high success rate, less investment, and maximum profits, the franchise system has delivered an endless list of successful business persons across the globe.

And, it is only growing. The uncertainty witnessed during the global Covid-19 pandemic makes franchising all the more reliable and successful business model.

While many businesses crumbled or struggled to stay afloat in the wake of the deadly virus outbreak, most of the franchises set examples of how to stay firm and deliver in the most testing time.    

A strong foundation is the key to success. But building a solid foundation for your newly launched independent business can take years.

Low-cost franchise opportunities, on the other hand, allows you to be an entrepreneur while relying on all the formulas and resources of successful big companies.

While the guidance is guaranteed, it comes with a degree of independence too. Besides quick profits, franchising gives a platform to associate yourself with a brand that goes a long way in boosting your market value and profile.

Franchise organizations in India offers both vertical and horizontal growth as one can gradually buy multiple franchises in different locations.        

Top reasons why buying a franchise is highly recommended:

Proven business model: Choose your favourite product or service and find the right franchisor for yourself.

Do what you love to do without worrying about product research and development, market analysis, operations, financial model and many such aspects that are essential to start a business.

Most of us usually have a clear idea of what we want to do. But we become clueless when it comes to executing the idea.

As a franchisee, you get a tried, tested, and successful business model to run, that too at a location of your choice.

Whether you have little or no experience of running a business, you can still become your own boss by following the procedures and methods set by the franchisor to grow the franchise. 

Brand recognition: When we start our own business, earning the customer’s trust and gaining popularity is never an easy task.

Even if a new business manages to stay afloat despite not making any profits in the initial years, the struggle to make a name for itself in the marketplace continues for many more years to come.

But in the franchising model, the franchisee gets to benefit from the brand recognition built over the years by the franchisor from day one.

Brand value goes a long way in attracting customers and retaining them for your outlet. 

Operational support: At every step, from building to running the franchise, rest assured that the required support for the operating system will be made available by the franchisor.

Troubleshooting in franchising is never done alone. Besides, expert advice and help for smooth functioning is always just a call away.

Be it continuing the old practices or introducing a new system within the set model, the unconditional operational support at its disposal makes the franchisee to move forward strongly.

Operational support from the franchisor helps the franchisee to dedicate more time to the core business areas rather than bothering about hiccups faced right at the start of a new journey.   

Marketing collaterals: It’s a well-known fact that a large part of investment goes into the marketing of a product or service to keep it fresh in the minds of customers and clients.

Franchise opportunities in India comes with successful advertising and publicity strategies to get new customers and retain the old ones.

Besides, collective advertising campaigns also reduce the marketing budget of franchisees.

Franchisees are free to advertise locally. And just like a set business model, most franchisors provide a marketing framework so that a franchisee doesn’t have to bother much about the layouts and templates.

Training: Be it marketing, accounting, sales or customer care, the franchise system is there to take care of it all as it prepares you to begin and continue the operations.

You may be a newbie or just learning the ropes, but extensive and proper training from the franchisor sets a solid foundation for the franchisee.

Training holds equal importance for both the franchisor and the franchisee. For the franchisor, training is important to maintain a similar workflow and practice at all its locations since any mismatch can affect the brand value.

For the franchisee, training ensures that any hurdles faced in the critical initial period are handled and removed skilfully.           

Options galore: Among the top reasons to enter the world of franchising is options aplenty.

The presence of multiple successful franchise organizations gives you a great opportunity to draw a business plan that suits you the best.

From seven-days-a-week and Monday-to-Friday to family business and low to high investment plans, there will be no dearth of options to choose the right franchise.

Irrespective of your expertise or experience, franchising has something for everyone. Diverse options give you a free hand to decide on which franchise to buy based on the presence or absence of similar products/brands in your preferred territory for a better profit margin.          

Easy finance: Arranging finances is a key and common factor for all businesses whether it’s franchising or otherwise.

But this is again a point where the latest franchise opportunities in India have the upper hand over other businesses.

A successful business model, stability and brand value always work in favour of the franchise when it comes to dealing with lenders.

All financers prefer funding a low-risk business. Established franchises rarely have any reason for bankers to deny the loan as they usually report good business, thus reducing the chances of repayment default.

Also, some big franchisors offer financial aid and guidance on how and from where to arrange loans without much hassle.  

Whether you have been a part of business organisation or have little experience how the businesses are run, in both the cases, franchise business in India with low investment makes cuts the deal. The success rate of franchise system is making Indian a global hub of franchises.   

Dhinal Baxi

Dhinal Baxi is a founder of franchise Insider. As a founder, he has served hundreds of clients. His experience from the financial sector has helped them to achieve great success in the franchise world.