India is an emerging economy with outstanding growth rates comparable to traditional economic powerhouses like U.S. and U.K; thus, India has tremendous business opportunities for investors’ world over. Especially franchise business opportunities are growing exponentially.
As business opportunities are on the rise, more and more persons and institutions are investing in the Indian economy. The Indian economy is being transformed, and its looks will be completely changed in the future. Many sectors of the economy are flourishing including the franchise business.
In the franchise business, some sectors are growing at a faster rate than others. These include automobile, health care, beauty products, IT, food and beverages etc. Many foreign companies, which have set up base in India, are witnessing a rapid growth and more revenue.
Many such companies receive valuable guidance from other top companies about the various aspects of franchising in India. Franchise opportunities are also supported by the government. Studies by experts point to the burgeoning of franchise opportunities in India and higher profit margins for the companies.
Franchising opportunities are high as it promotes already well established international brands in India. Franchising companies by generating profits boost the economy and contribute to its faster growth.
There are several advantages with the franchise business. One is not alone when one sets up the business. One has the backing of already well settled brands and professionals with experience in promoting the brand. One has always a helping hand if faced with problems. It is no longer a difficult responsibility to take hard decisions.
Franchisor companies also provide the necessary training required by your enterprise as it charts its way in the world of business. Correct training may become a key to your success in business. As a novice, you can avoid committing mistakes as the franchisor will train you in time tested methods for marketing and sales.
While investing in a franchise, you need to keep the following points in mind:
• Matching business: Invest in a franchise that only matches your profile. Do not invest in franchise just because it is lucrative but does not match your skills and resources.
• Arranging finances: Once you have found a franchise opportunity that matches your skills, next step is to arrange the required finances. You must possess an ROI (Return of Investment) paper given by the franchisor. All the investments you make in the franchise must correspond to that sheet. Do not do both – cut costs or over spend.
• Allocate roles: Every franchise has well defined roles for its teams. One must allocate roles by properly studying its requirements. This is very important as many franchise fail because they are not staffed adequately or the skills of the staff are poor.
• Franchisee instructions: Blindly follow franchisee instructions from the franchisor for the first year of operation. After that, you can give your feedback and suggestions on the local market conditions and local issues that affect the business.
• Initial marketing: The franchisee must be ready to incur initial marketing costs rather than expect the franchisor to incur the same. On a different note, the franchisee must not overspend on initial marketing as it will harm the business.
• Procedure of operations: Franchisees are guided daily by manuals and guidelines. Training can be provided on these bases.
• Cooperation: Franchisee must cooperate with franchisor. Both can work together for mutual benefit.