Accessibility of diverse business opportunities is creating a lot of confusion among aspiring entrepreneurs to zero down on a single business opportunity. To add to this confusion is the increasing trend among brands whether service or product to opt for franchise route for expansion. No doubt taking up a franchise business opportunity is always preferred over opting for an independent business, still it is difficult to zero down whether to get associated with service franchise brand or retail franchising one. Franchising provides all the know-how and expertise of running a business successfully, which an independent business can never provide. From selecting the right location to recruiting the staff and from designing the logo to creating a brand image, everything will be done by the business owner which in not a case with franchising. No doubt franchising is successful business formula yet selecting the right business opportunity needs lot of care.
Franchising is divided into two major categories: Business or service franchising and the second one is Retail franchising. The brands that are providing services to the consumers are called service franchises and the brands that are providing product or are selling products or merchandise from a retail outlet and is expanding via franchising is called retail franchising.
The major sectors or industries that may fall under service franchising include food and beverages, education, health and beauty, play schools and activity centres, pre-school education, IT education and training, business services, consumer services, car care services and school education.
Retail franchising mainly include industries like apparel, footwear, jewellery, pharmacies, FMCG, consumer durables, furniture, electronic goods, home appliances and so on.
Some factors need to be considered before taking up a final call on the franchise business opportunity by the aspiring entrepreneur. Right business selection would definitely decrease the risk of failure and would elevate the levels of success. The article presents some measures; if taken care of at the initial phase of selection of business opportunity, the percentage of success is higher at least, if not guaranteed.
Search and research: Talk to various business owners for experience and knowledge in the areas that interests you. Understand the need of the market and ask questions.
Analyse yourself: It is very important to find out if you are a business person or not. Write down on a paper describing why you want to take up the business opportunity at all. Know your marketing and sales qualities and understand your family obligations.
Check your finances: Take a note on the kind of investment you can make. After having analysed the budget search for the business opportunities that suits you.
Check business model: Search for various business models available in the market. Make your mind if you would like to opt for franchising or independent business.
Select right industry: Having short-listed the industry for which you want to take up a business talk to experts and gather as much information as possible. Evaluate the opportunity in terms of investment required in terms of money and market value of the brand.
Take financial assistance: Talk to your accountant about income and profit projections made by the franchisors and talk to a solicitor about the franchise agreement.
Zero down on a wise decision: Analyse everything before taking up a final call. As you will be putting in your hard earned money in the business so do not just rush into the decision. Be 200 per cent sure, before making an investment.
The availability of diverse business opportunities in franchising as well retail franchising on one hand offers plenty of prospects where as on the other creates lot of confusion, leading to lot of confusion. A self analysis followed by adequate search and research is the best foot forward for right business opportunity.