Nowadays it is time to recover from the corona pandemic. The whole world is still not fully recovered from the Great Depression. In such a situation, people’s backs are broken due to unemployment or half-paid jobs and ruined business. Inflation is not taking its name to stop. It is becoming difficult for people to run their families. In these circumstances, the common man is thinking of earning maximum profit as soon as possible by investing minimum capital. Due to not getting the job of getting unemployed job and working in half incomplete salary, the person is getting away from his job and making the idea of business. An unemployed person is also thinking of starting some work. But everyone has the same problem that at this time neither one can invest more capital nor one can wait for profits by doing a new business. In these dire circumstances, if anyone wants to find the safest and easiest way, then
- 1 What is franchise Business?
- 2 Benefits of Franchise Business
- 3 Types of franchise business – What are the types of franchise business
- 4 How to start a Franchise Business
- 5 What do you do to make your business shine?
What is franchise Business?
If we want to understand the franchise business in the native language, then this business can be considered like taking dealership or agency. You can start your business by opening a branch of a famous company in your city or your favorite area and earn good money. The special thing about this business is that you do not have to wait for profits in this. You will also have to invest less capital than starting your new business. Running away will also have to be done less. There is also a facility in this that you can start a business according to your interest and the demand of the area. For this, so much care has to be taken that according to the business, you will have to take the shop, showroom in the main market and get the mechanical equipment and other necessary items related to that business or your company will provide you on its behalf. Some company gives the facility of its machines and artisans to the franchisee on its behalf so that the quality of its branded product is not maintained, There should not be any shortage in it. Because the customer buys his goods because of the same quality. The franchisee gets the benefit of this.
Features of Franchise Business
Nowadays the trend of franchise business is going on very fast. The reason for this is that it is a business with many facilities and fixed income. In this, the parent company may have to pay a small profit share or royalty and fees, but the franchisee gets all the benefits of the business of that parent company to the new business person.
1. By doing this type of business, the person starts earning from the very first day. Because the parent company’s market is already formed and its customers start taking goods from day one. This is why the new business of the franchisee takes off and the new business man gets a lot of relief from it.
2. The person doing business has to invest less capital than the cost of starting his own business. In this only shop, showroom have to be taken. After that all the other finished goods or finished goods are supplied by the original company.
3. In taking the franchise of a food processing company, specially trained artisans from the parent company also get the new businessman, who work with him, their salary etc. is the responsibility of the new businessman only. Each company has its own different terms and conditions.
4. Many companies also provide equipment according to their product. They also supply raw materials so that the quality of their products is maintained. In the new area, customers can get the same test and quality as in the old area. This makes the customer believe in the new shop and showroom that it is a branch of his company.
5. Readymade products from branded companies are available. These products are already running in the market. The new businessman gets the benefit of this. He does not have to search for customers for his product nor does he have to do any kind of marketing and advertising. All this work is done by the original company itself.
Benefits of Franchise Business
There are many benefits of a franchise business. Some of these notable ones are as follows:-
1. Being a famous brand does not have to work hard in finding customers, because the company has its own customer segment, it will automatically come to you to buy your favorite product, which gives you profit. In this way, the person doing the franchise business gets readymade business.
2. Apart from the shop and showroom, you do not have to take anything special for business. Certain types of franchise businesses require the services of machines and artisans. which is included in the terms of business of the company.
3. This business is started in less capital and less running and in this the responsibility of the franchisee is not too much. Even if a new person does not have experience in this business, he can easily do this business because all the work is done by the original company.
4. You also do not have to spend on marketing and advertising for your product.
5. You do not have to take tension even for food items or other ready-made items. The original company takes all his tension.
6. The guarantee, warranty etc. of the product is also the responsibility of the parent company. You have no role in this. In this you only have to deal with customers.
Types of franchise business – What are the types of franchise business
There are many different types of franchise business. Some of these are more popular in India and some run more abroad. Let us know how many types of franchise business there are and which one is the most popular in India.
- business franchise venture
- business format franchise
- Manufacturing Franchise
- Product Franchisee
1. Business Franchise Venture
In this type of franchise business, the businessman who takes the franchise from the owner of the parent company buys the product and sells it to the customers. In this, its customer base is provided by the original company. Who are required to maintain the franchisee. The franchisee gets a lot of benefits from the customer base. In return, the parent company charges fees, royalties.
2. Business Format Franchisee
This method of franchise business is most popular among those doing franchise business in India. Most of the companies and franchises in India work on this system. Under this system, the new franchisee gets a very successful business model. This business model comes from a popular brand or product. The original company provides all the necessary training and assistance to the franchisee to set up the business. Royalty or fees are collected from the original company franchisee. The original company supplies technical and material support to the franchisee for quality control. The prime example of this is the business of food items.
3. Manufacturing Franchise
In this model, the person doing business gets permission to sell or produce a product with the name and trademark of the original company by taking a license. A person doing this type of franchise business can use National Advertising for marketing the product. In this system the franchisee has to make a fixed payment to the original company.
4. Product Franchisee
Talking about this system of franchise business, it is the oldest method. Under this, the producers are given the right to distribute their products to the dealers themselves. The dealer pays certain fees to the producer for selling the product’s trademarked goods. This system continues even today in large industries. The same system works in industries like petrol, diesel, LPG, CNG.
How to start a Franchise Business
1. First of all you have to decide where you want to do this business. Before that you also have to think about which product or service business you want to start. Apart from this, you also have to watch your pocket about this. You can take shop or showroom according to your financial capacity. If your budget is low, then you will have to find such a township or area of the city where the main market shop is according to your budget and the people there can easily buy the product you want to do business with.
2. When you have decided where you want to start your franchise business. Find out the market of that area and the customers of that area. After this, you can also collect information about your favorite product and service. Get a good understanding of the sales potential of the product among your customers and also the purchasing power of the customers. If you analyze all these well then your business will run very well.
3. Before starting this business, it is important for you to decide that what you have a deep knowledge of or what you have a special interest in. Try your hand at the same thing. Choose the place where you can sell the most. At the same place you have to take the shop or showroom. The advantage of this will be that your business will run well and for that any company will be ready to give you franchise easily.
4. After this, start looking for companies of products or services operating in your area. You can do this search both offline and online. Know the terms and conditions of the company thoroughly. Company history or how the company deals with other franchisees. Get all these information.
5. When everything goes well, then talk to the company to take a franchise. Make a written agreement for all of your terms and conditions. Everything should be clearly written in this agreement. For this, if there is any period, period, time, limit of the agreement, then it should also be clear between both the parties.
6. The most important thing in the agreement is profit sharing. Be it royalty, advance fee, or profit sharing. Everything about this should be clearly decided in advance. There should not be any hidden policy in this. Otherwise the business may get affected anytime in the middle.
What do you do to make your business shine?
You start the business by taking the franchise of a famous company. With this, you will not have to wander for customers. The customers of that brand or product will come themselves. Apart from this, you can take some such measures to shine your business, from which you can get more profit.
If your agreement does not prohibit the sale of another product, then you should also sell the product of your original company along with other products sold with it. With this you can get full profit in side business.
To further increase the franchisee business, if you keep deliverymen and supply their homes on the demand of customers, then you will get new customers. If you give free service for a limited distance, then it will increase your business. You can also charge after a limited distance or set a limit for a large order. This will sell you more goods. When the goods are sold more, you will get more profit on it.