Sell Well (Keys to the Kingdom of Franchising)
SELL WELL(Published Education Times, 10th January 2005)
Stuck with a boring job? Need a mid-career change? Or simply ‘looking around’ for another career option? Whatever your case, franchising is the perfect option. Dhawal Shah tells you how to set the cash registers ringing
A recent study in India revealed that 45 per cent of India’s working population if given a chance would like to start their independent business and cater to the retail needs of the people. Some of today’s most remunerative jobs are in the franchising and retailing sectors, with the latter having emerged as India’s sunrise sector. Mr. C. Y. Pal, President, Franchising Association of India, agrees:”India is experiencing exponential growth in retail. Franchising as a business model offers great potential for expanding the reach of various businesses.”
Over the past few years, the ‘Organized Retailing’ sector has been clocking a steady rate of 25 per cent per annum and is showing no signs of slowing down. Everyone wants to be part of this growing industry and individuals with little or no prior experience can today, confidently consider buying the ‘right franchise’ at the ‘right price’.
Mathai Chackochen, National Manager (Network Development & Support), CADD Centre says, “Co-branding is the future of franchising and will offer tremendous opportunities in the days to come.” Dr. Robert Ipasso, CEO, The Natural Source, Australia, adds, “Franchising is the least scariest option of starting your own business. Besides you can enter the field of your choice and be your own boss.”
SELL IT LIKE HOT CAKES
One might be surprised to know that a lot more than hamburgers are franchised and that many franchise businesses are actually conducted outside the United States of America.
The franchising sector consists of a wide range of businesses ranging from french fries to automobile parts. Some of the most common franchisee businesses include the following sectors:
Automotive: Consists of specializing in a number of different areas, from detailing to glass repair.
Business Services : Covers a broad spectrum of categories including Advertising and Promotion; (Work from home, or an office); Training (provide companies with sales training programmes); staffing (offer temporary or permanent manpower to companies ranging from Clerical to CEO levels)
Childrens’s sector: An increasing number of business owners are looking to provide services for the physical and mental well being of children. Childcare and Education Franchises are some of the most popular.
Entertainment: Perhaps the most sought after, this consists of retailing movie, theatre, drama tickets etc.
Fitness: this includes opening up an outlet for a popular gym or health club.
Food and Restaurant: This includes many of today’s latest trends such as baked foods, coffee and beverages; fast foods, ice creams, low carb food, pizzas, seafood, specialty
Health And Beauty: This category too, can be bifurcated into a variety of sub-streams including diet and fitness, hair care and cosmetics, tanning and skin care etc.
MAKING THE MARK
Though the variety and choice for prospective franchisees is not as varied as that in the US, options are growing by the day.
Nancy Ghanem, Founder and President of Franchise.Com, says, “Franchising continues to grow throughout the world. Hundreds of franchises are expanding across national borders and thousands of others remain successful in their local market.
According to statistics available with the U.S. Department of Commerce, over a ten year period franchises enjoyed over a 90 per cent success rate as compared to only an 18 per cent experienced by independent businesses.
Buying a franchise greatly reduces the risk of starting a new stand-alone outlet or an independent business. This factor alone has created a new awareness and trust in franchising as a business model.
Mr. Pramod Khera, CEO of Aptech Computers, and a franchise evangelist says, “Franchising uses the strength, power and experience of the ‘chain’ or network of a large organisation and the entrepreneurial skills and commitment of the proprietor of a small business unit.”
As a career option in India, franchising can be a very lucrative choice.
LEARNING THE ROPES
there are no formal certified courses in franchising offered by recognised colleges or universities in India. This is a double-edged sword as, while this opens up new avenues of self-learning through various mediums such as books, the Internet, magazines etc, you also risk the inability to learn franchising in a structured manner. You may therefore end up working much harder and learn through costly trial and error.
In India, many people with a formal background in marketing or retailing have shifted focus to franchising. Many MBAs from the IIMs are also actively involved in franchising. This has opened doors to others who do not have a Masters in marketing but are fascinated by this field. According to Jagdeep Kapoor, CMD, Samsika Marketing Consultants, “All one needs is a positive mindset, discipline, financial monitoring, good brand and excellent service.” Anand Pejawar of Max New York Life adds, “Transparency is crucial for a successful franchiser-franchisee relationship.”
TAKING THE PICK
Those interested in franchising can choose from the following options:
FRANCHISE SALES EXECUTIVE: This is the starting point for freshers who are charmed by the world of franchising. The job would include lead handling and qualification, meeting prospective franchisees, presenting the business opportunity, representing the company at exhibitions and awarding franchises to those who meet the company's quality standards. Consistent performers can look for promotion is a short span of two – three years. A great opportunity for an ambitious executive with high quality standards.
FRANCHISE LAWYER: This is a relatively new field for young legal eagles looking for a fast track. There are many opportunities here and you could become an expert on franchise offer documents, contracts, franchisor-franchisee relationships and related matters.
FRANCHISEE: Another way to get involved in franchising is by buying a franchise. A good Franchisor company has already gone through the grind and has come out stronger (with better products or / and a better delivery system). It would also help to know that those starting franchise outlets are usually more successful than those starting their own firms. The drawback however of going for a franchise is that it leaves very little space for innovation and if not cautious, an extravagant franchise could burn a deep hole in your pocket.
FRANCHISER: Business owners possessing a proven business model or those having a successful record of accomplishment, can franchise their concept for faster expansion and reduced financial risks. But before deciding to clone your operations, you must consider a number of things including the product’s success, building a sustainable competitive advantage, designing a superior delivery system, registering Intellectual Property, developing Operations / Procedural Manual etc. It helps to take proper guidance and expert advice before venturing into franchising.
FRANCHISE MANAGER: Companies usually seek highly motivated individuals with a record accomplishment in sales, marketing and people management. Franchise experience is preferred but not necessary. The job involves maintaining relationships
with franchisees for the franchiser company, as this is conducive for the company’s topline growth. You must also manage central suppliers and ensure that production confirms to quality standards. New product development and ensuring adequate compensation to the franchisees as well as to its team also form part of your responsibilities. Ensuring that franchisees are adequately trained for the job is essential, as they will ultimately be the ones representing your company to the customer.
The Franchise Manager requires extensive HR skills, as franchisees need constant motivation and guidance. They need a mentor from the franchiser company who can help them overcome day-to-day problems of running their business. The final objective of such a job is to help franchisees achieve maximum potential and most companies prefer candidates with a successful track record in sales. Performance can be optimized through proper coaching. Previous experience in coaching / training would help.
FRANCHISE CONSULTANT: This one’s off limits till you have worked for three to four different franchise companies as Franchise Manager for atleast eight to ten years. Once you have adequate experience, you can start your own franchise consultancy firm. here, you would be involved in helping companies franchise their operations, creating, maintaining and sustaining growth, formulating business plans, complying with government norms and regulations. You can also target at companies with an established franchise network as clients, and provide them with services like ‘Lead Generation Programmes’, ‘Franchise Brochures’, as well as Maintaining and servicing their franchise network.
MOOLAH MATTERS
Not considering the pros and cons of a career in franchising could be financially and emotionally risky. Before proceeding, ensure that you are truly passionate and determined as this is what will keep you going in tough times.
Before making the final switch (in career paths), chart out a clear course. It is also advisable to carefully evaluate the options with your family, friends and relatives. You may even consider becoming a member or volunteer for trade bodies such as the Franchising Association of India (http://www.fai.co.in/). Networking events such as seminars organized by the Franchising Association of India are good places to start with. The Franchising Association of India jointly organizes annual exhibitions such as World of Franchising and conferences like Franchising And Beyond. At these events one can get a feel of the opportunities that are available in the franchise market.
FINALLY, GOOD LUCK
DHAWAL SHAH is described as a franchise enthusiast. Dhawal has always been intrigued by the power of franchising. Based in Mumbai, he constantly reads and writes on franchising and its enormous potential in India. He can be contacted at dhawal@mail.com
REPRINT GUIDELINES
* Feel free to use the following article however you like as long as thethe author byline remains unedited and attached.
* If you are using this article on a website/e-book, please make sure that all the URLs in the article body and especially the byline is set as hyperlinks.
* You may not use this article in UCE (Unsolicited Commercial Email). Email distribution of this article must be opt-in email only.
* A courtesy copy is appreciated.
Please keep in mind that this document is copyrighted. You have permission to post it, email it, print it and pass it along for free to anyone you like, as long as you make no changes or edits to its contents or digital format (the truth is, we'd love it if you'd make lots and lots of copies). The right to bind this and sell it however, is strictly reserved.
posted by DS @ 6:15 PM
<< Home