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March 12 2013

francispryor

The Way to Franchise Your Business Successfully

Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade as their own business under the brand of the franchisor, following a proven business model. The franchisee also receives a package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis (including a predetermined agreement length – with renewal options).

Franchising can not only strengthen the brand and reach of a company, but it can also act as a very good method of securing its future, but only if done well.

Franchising is the most powerful method of business expansion. Many business owners see franchising as an exciting and natural next step towards growing their business.Just have a glance through the franchise industry and you will be surprised to find that most of the top franchise companies have modest beginnings. Many of the brands that are popular all over the world started as a small family business and through franchising have turned out to be popular. You need to have knowledge about how to franchise in the right manner to ensure success to franchise your business. Thus, you can consider franchising your business if you dream of making your business big and successful.

To franchise a business is not something that can be done without thought. To start with, the business needs to be proven – you need to show potential franchisees that the business works in the way in which they will need to run it. It also needs to be transferable, so that it can be run in multiple locations, using the same system, brand and quality. As a key point in this, the franchise also needs to be something that you can teach people to do. There is little point having a franchise that only one person in the world would be capable of running. You then need to make sure it is protected, by ensuring you have all the correct documents to secure your brand with any appropriate legal advice.

There are many business owners who get confused as how to franchise my business. Well, you need to go through a lot of preparationsbefore taking the decision to franchise your business. It is not just a decision that can be implied within a day. Before coming to a conclusion as how to franchise my business, give some time to research and analyze the market. Take help of a franchising consulting firm or some experts to help you make the right decision.

The very first thing that you need to understand is whether your business or company is good enough to undergo such a big a step. Secondly, in order to convert your business to a franchise successfully, you should determine the profitability of your current business. The business model should be one that can be copied easily by franchisees.

Franchising should be viewed as an evolutionary step in the expansion of your business. It should only come about after you have established your business and have obtained a level of measurable and sustainable success. That is your business must have a track record of consistently producing profits.

The competition in the franchising industry is quite high, so before deciding on how to franchise my business, learn all about the franchise industry and how it operates in your country and in your business category. This part is easy as there are so many websites that can provide you with valuable information about franchising.

Make contact with all the businesses that are franchising a similar concept as yours. Request their brochures, marketing material and meet their representatives. This will give you a deep insight in their processes, methods of communication and approach to the market place. Analyze their key strengths and weaknesses and evaluate how your franchise will sit in the marketplace.

Always consider that prospective franchisees do not possess the skill level and experience that you have - especially when it comes to operating the business that you created. To successfully franchise your business you must ensure that you have developed business systems, procedures and methods of operation that may be successfully taught to franchisees and consistently followed by franchisees in their day-to-day business operations.

If after taking the above steps you still believe that your business opportunity is viable for taking the franchise route to the market place then it is now time to get professional advice from a number of franchising experts.

You will need to create an operator's manuals, brochures, online presentations and marketing plan. One of the most important steps to franchise your business is to prepare a franchise agreement. This is a contract between the franchisee and the franchiser which defines their relationship and inter se rights and obligations.

The franchise agreement must ensure clear, unambiguous and water tight coverage of all critical issues, such as, roles and obligations of the parties, confidentiality and intellectual property protection; payment terms and taxes; duration, renewal and termination; agency issues; post termination issues; negative covenants; governing law and jurisdiction (especially in international franchise arrangements).

For the start-up franchisor - on the list of must do things to "franchise your business" - the planning and preparation of your FDD should be at the top. Since the FDD is a legal document that must combine and satisfy multiple federal and state regulatory requirements, it is critical that this document be prepared by an experienced franchise lawyer.

When it comes to franchising your business there are more factors and information that you will need to know. The foregoing "factors" or information should serve as the foundation and base to build from. But critical to every stage of the "franchising process" is a mindset that requires the constant assessment of your business, the gathering of information and a careful plan that is focused on creating a franchise system that is built for long term success.

Franchising a business can be an effective tool to ensure its growth and larger market share. Many businesses have gone through this path and become global leaders in their line of operation. Now, it’s your turn to expand your business successfully through franchising.

francispryor

International Franchise Solutions from Best Business Consultants

When selecting a franchise business consultant, personal rapport usually is very important. The consultant needs to have access to all areas of the business and must be able to provide criticism, advice, and guidance that will be received and implemented. Owning a successful business can be very rewarding, but the first year can be extremely challenging. Working with a franchise business consultant provides owners with access to a wealth of knowledge and experience to help them avoid costly errors.

Opening a new franchise requires a high commitment. It is important to examine all details before making a decision, whether it is a small, medium or large venture. By taking advantage of a franchise consultant, and using their proven franchise selection and investigation process, you can save time and money -- while also avoiding making costly mistakes. In addition, a franchise consultant has years of experience and has carefully pre-screened many franchise companies and will help you understand why certain opportunities are better than others. The franchise consultant will show you the safer and most attractive business opportunities that are suitable for you.

A franchise system can be a very effective way for those without a lot of experience in franchise operations. Turn-key operations, marketing and business planning; large corporate support; lower learning curve; established accounting, cost control and management systems; brand identification; training programs; national and regional advertising; customer service programs; market trend responsiveness; supplier and vendor discounts; among others are some of the many advantages in using business consultants.

A franchise business attracts many successful business owners as well as fresh business-oriented individuals along with business consultants. This is primarily because of the fact that the company or the products you will have to correspond already confirms to be booming in their field for so many years. An exciting thing that will attract you with more brilliance as an aspiring business professional in a particular niche of your choice is the plan to buy a franchise business.

Franchise consulting is one concept that has gained importance in the last few years. Aspiring entrepreneurs who wants to enter the field of franchising may feel satisfied by searching and hiring franchisees from the different websites. However, technology has its own limitations, as it cannot provide you with complete information, thus new as well as experienced franchisors must not fully rely on the information provided via internet. A better way to get expert’s opinion is by hiring the services of franchise consultants.

The Process of Franchise Consulting

One great leap that will change your life for greater prosperity is your plan to purchase a franchise. You only need to know how to reduce related costs in an effective manner. International franchise solutions consultant will assist you in process that every franchisee should have to deal with. It even involves the process of hiring an accountant and a lawyer to help make the franchise purchase even faster and hassle free. The franchisee should bring about other related commitments before he could get hold of full possession of the business and initiate running it for more returns. The whole process of buying an international business franchise business involves the existing government laws that and certain restrictions within your current location, the franchiser's terms and conditions, and the regulations that both parties must adhere some other exclusive business policies

Why Hire International Franchise Consultants?

Your franchising quests yield greater results by hiring an international franchise solutions consultant for business. You get a true wonderful experience in getting hold of a successful business through the years. The following are the reasons as to why it is necessary to go for a franchise consultant for all your franchising moves.

1. Franchiser pays all charges; therefore, there is no need to pay the franchise consultant for consultation.

2. Full privacy and confidentiality is involved during the whole process for all concerned parties.

3. Explaining details about the franchise business process is where the franchise consultant helps the franchisee.

4. The consultant helps match with the best opportunities available for the franchisee's sake to satisfy franchisee's interests and goals.

5. Proper training for all investment options is what the franchisee is equipped with. Consultant tracks and verifies each company's record of success and initiates contact among concerned parties.

6. A thorough research for different opportunities that a potential franchisee could successfully indulge is also made by the franchise consultant. All franchising concerns like re-sale franchises, new units and part or full time franchises are solved in all-in-one solution.

7. Business consultants establish harmony in all your franchise confusions and provide an expert packaged legal solution offered by this reliable franchise professional when required.

Using a franchise consultant will help you select the right franchise business opportunity for you. Most people don't even know where to begin, or what questions to ask for. A franchise consultant represents all kinds of franchise business opportunities - across a wide range of investments -- varying from business-to-business, to specialty retail, to specialty food, to automotive, to technology, to in-home services.

Franchise consultants pre-screen each franchise company, before they present them to you and their expertise can greatly reduce the time you spend researching to find the perfect business fit. These franchise consultant experts study the franchise's litigation and performance track records and evaluate the franchise's product or service to ensure they match your criteria and selection of interests.

francispryor

How to Devise an Effective Franchise Marketing Strategy

When a company decides to franchise its business, the questions that normally arise are: what should be its marketing plan, how to get the right franchisee, and what yardsticks be adopted to recruit a new franchisee. In fact experts believe that the marketing plan is the most important part of a franchise business plan.

One of the most important tasks of franchisors is to create and maintain a successful franchise marketing and advertising plan to achieve success in getting a franchisee. Franchise advertising raises brand awareness and enables the brand to provide a consistent image that consumers can identify with on a national basis and increases brand awareness. As it drives footfall to stores, this in turn increases profits at franchisee level. A well thought off, marketing strategy may mean the difference between a prosperous business and bankruptcy.

Mandatory centralized marketing programs are probably one of the greatest strengths of franchising. It doesn’t necessarily require a lot of money to develop a good marketing strategy. If you do not have any previous experience in creating full marketing plans you may need some professional advice and guidance especially, however you can still get most of the work done yourself.

For the overall franchise, most franchisors have comprehensive franchise marketing plans in place. The national plan typically includes commercials via television and radio, internet advertising, advertising campaigns, direct mail efforts and public relations. As a result brand recognition is broadly established. Some franchisors usually provide an outline for the franchisees to follow in preparing their marketing plan on a local level, who do not manage marketing on a national level. Franchisees may also be permitted and possibly encouraged to perform local marketing initiatives on their own within certain restrictions, even if franchisors provide national marketing. Prior to proceeding with the local plan, approval of the franchisor is usually necessary.

Franchisors also have to ensure brand and regulatory compliance, it’s critical to approach local online marketing very carefully to strategically include franchisees and get the best results while avoiding costly problems. You don’t want to give franchisees too much control over their online presence, or else you’ll run into compliance issues right and left, and franchisee guesswork can yield poor results more often than not. At the same time, you can’t be too restrictive, or franchisees will simply break the rules until you track them down and enforce compliance. You need to have a clear strategy that strikes the right balance.

You are going to need to take some time to first get to understand how a marketing plan for your franchise should work. In general instances a marketing plan is basically a guide that is created by the franchisor which includes information on how the business will be brought in. You are going to need to contribute some funds into the marketing plan to get it underway.

As you need to come up with your own tools for building a local client and customer base, franchise advertisements can be a challenge. With a set amount of money by using signs and banners as promotional materials in your franchise advertising plan, it is an inexpensive way to reach a lot of people. Signs can be used outside and inside your establishment, listing specials, promotions and sales. Vibrantly colored signs on metal, wooden blanks or plastic attract the eyes of passerby and bring in potential new clients. Moreover, establishing a brand name for your franchise in your local market is very important. There are several people who may require your service, but may not know of your business. Successful local franchise advertisements will put you in front of these buyers when they are ready to buy.

When creating your franchise marketing plan the first thing that you need to keep in mind is to whether you are looking to establish your franchise locally or you are looking for nation-wide or overseas expansion. It is also vital to identify your potential franchisees. By knowing your customers will help you target your marketing activities into reaching the optimum number of sales. It will also help you set up reasonable royalties and franchise fees. You can research other franchise businesses offering similar products and services and see who their franchisees are.

You should include a great franchise advertising strategy in your franchise marketing plan. There is a major difference between advertising any other consumer targeted business and franchise advertisements. Due to the lack of the knowledge and the experience, often young franchisors fail to prepare good advertising plan. You can either work through a franchise consultant or hire a professional franchise advertising company, who will help you with all that you would need. In order to stay out of trouble and to adhere to the local laws there are also some legal requirements that must be met.

Lastly, you want to check into the rules and regulations regarding creation leverage when making these marketing plans. You will find that most franchisors will allow their franchisees to help in the creation of the plan. You want to find out how much input a franchisee is allowed to have with improvements to the plan. Try to gather as much information as possible from your franchisees once you launch your franchise brand. This will give you plenty of ideas how to develop your marketing strategy further.

francispryor

Franchising in India with Big Franchise Brands

Franchising in India fittingly asserts to be the wave of potential business in India. A massive customer base of over a billion people including a affluent class of metropolitan consumers having ample disposable income with quality and brand awareness together with the appeal, which the Indian market holds in terms of its human resources, has been helpful in drawing foreign endeavors to the country.

There is a mere fraction of the potential that India can offer, though franchising business in India has witnessed impressive growth of around 30-35% over the last 4-5 years with an estimated annual turnover of US$ 4 billion. The Indian Franchise Association guesstimates that in subsequent five years, there would be no less than 50,000 franchises in the Indian market.

Franchising is a method of doing business and engages the use by a person ("Franchisee"), license’s pursuant, of another person's ("Franchisor") business model, get-up, name, business identity and image along with his classified know-how to make use of his insubstantial assets in a meticulous territory for a particular period with or without guaranteed financial returns to the Franchisor. A typical franchising arrangement provides the Franchisor the access to local sales channels and marketing expertise, franchisee's knowledge of the territory, lesser personnel problems, minimum government approvals, accelerated network expansion and, probably, profitability.

Investing in top franchise opportunities in franchise brands has tremendous benefits rather than starting from scratch with an unknown product. You in fact do not have to start introducing the merchandise to advertise from scratch. Business entities, which proffer these top franchise prospects, may be either nationwide renowned names or hot brands that carry a worldwide following. They have a complete brand recall.

Established: This category of the survey focuses on the brands which have been in franchising for more than 10 years and are well established. The brands in these categories are well established and are industry leaders who have contributed to the growth of the franchising industry in the country. Few brands which feature in these categories are Amul, JK tyre, Kwality Raymonds, VLCC, NIIT, Next and Tanishq.

Emerging: The emerging category features the new and vibrant brands that are on the verge of becoming bigger brands. This category comprises the brands which have shown a positive growth in the last couple of years which include brands from various sectors like F&B, Financial, logistics etc. Safeexpress, ICICI securities, Kodak, Gitanjali, Cox&Kings and Amara raja are few of the brands which are part of emerging categories.

Debutant: This category features brands which are relatively new and have new concepts and ideas for growth. These brands are expected to grow exponentially in the future. Most of the brands in these categories were launched in 2009 and have registered a phenomenal growth in a very short span of time. The most interesting trend in this category is that most of the brands were launched by prominent names in the industry and are far more flexible in terms of territory allocation, negotiation and other factors which attract a first time franchisee few of the brands under these categories are Reliance world, NIIT-eguru, pidilite, DTDC pluspoint, 3M etc.

International: This category features some of the international brands which have opted for the franchise model for growth in the country; these brands have their presence in the country for more than 10 years and have a proven success record. F&B sector has seen some of the international brands penetrating the Indian market, international brands have shown highest growth in the Indian market. Addidas, Pizza Hut, Samsonite, Nokia, Subway, Levi’s and baskin robins are few of the brands which are part of the international category of the survey.

Take for instance a top franchise brands prospect like a Honda automobile showroom. You need not be concerned about shouting out to the market how superior a car Honda is. Likewise, a Dominos franchise is a previously well-known brand. All you in fact require to let know the prospective customers is that this store has opened at so and so address. You then make sure is that once the consumer walks in the service is good and a red carpet is useful. A tad of base level marketing is all that is required to make sure a top franchise opportunity gives you proper results.

Franchises offered by big franchise brands from big international companies look after their franchisees well in requisites of endorsement and they have a propensity to make sure that the course of product adaptation is meticulous, which makes the novel franchise proprietor less apprehensive about the product and more prepared on selling it. It is not complicated to comprehend the long twisting queue of global companies waiting to propose Indian and non-Indian businesspersons with top franchise prospects in India, once you are conscious of these aspects.

There are many different options for food and beverage franchising, such as fast food, health food, pizza, sandwich shops, ice cream parlor, smoothie, juice bars, cookie shop, candy outlet, and bakery as well as restaurant franchises. The Food & Beverage sector is expected to touch 45% of growth level in the near future. This may not be the least effected territory but is undoubtedly one of the safest ones to go in for.

India, with the largest youth population, is an attractive destination for the potential business opportunities in Education Sector. Its unquenchable thirst for quality education with world class training systems and its desire to fill the wide gap between the number of potentially employable people and corresponding training institutes available has led to a widespread demand for franchised education.

Franchising in India is poised to grow phenomenally in the franchising sector in the coming years. It is multi ethnic country with the second largest entrepreneurial population in the world having sufficient exposure to international standard of services with a healthy commercial law environment.

francispryor

Follow the Right Franchise Strategy

Strategic franchise planning is critical, especially these days. It takes a lot more to succeed in franchising besides an FDD, a franchise operation manual, an invoice and a handshake. Starting a franchise is a very risky venture and franchise development comes first to mind. It has its own benefits and shortcomings. Nonetheless, individuals can consider a franchise as the better option, the ones who do not wish to begin their businesses right from scratch. Starting a franchise is quite an enormous task and it requires considerable amounts of proper planning, time and finances. You will recognize that this business can be very profitable if done wholeheartedly, follow right franchise strategy once it starts to operate.

You need a strategy before investing in a franchise. Doing your homework about the franchise first will help you gain a solid understanding of what to expect as well as the risks that could be involved.

Before entering into any contract as a franchisee, you should make sure that you would have the right to use the franchise name and trademark, receive training and management assistance from the franchisor, use the franchisor's expertise in marketing, advertising, facility design, layouts, displays and fixtures and do business in an area protected from other competing franchisees.

Picking up a viable business that suits you best is the one of the first steps to franchising. With diverse franchising firms in the market having their own operating policies, as a investor you require to find one which will not seize your commercial interest but is also exhilarating and less hectic to operate. Go for a firm that has the potential to grow and already well established. Get hold of funding for the particular franchise you wish to contract with. The early costs for opening a franchise may be very high. Once you have verified that the document is comprehensive, approach your prospective financial sponsor after establishing the rates and lay down a commercial credit proposal that summarizes your main goals, objectives and future plans. Be on the safe side by following submission rules.

Tips on franchise development helps in better business gain. Find the proper equipment as well as the best location for your venture. In some instances, like for an edifice or suitable automobile it would be necessary for you to procure land. Some franchisers can authorize one to let out out space in a building. While starting a franchise varied equipments will also need to be procured. Opening catalog is the next step to be carried out. Do remember that there is uniqueness in each franchise when it comes to the sum of inventory. The total amount you will require needs to be confirmed with your franchiser.

The recommended franchise industry best practice approach is to integrate management training with strategic planning. Management is first trained in how to structure and staff the various functions in the new franchise company, how to determine franchise profile requirements, market and sell franchises, etc. Then, the training is carried forward as the franchise relationship is planned and structured.

Kick Start your Franchise

Advertising and exhibiting outer signs is the most effective franchise strategy. This gets your business's name on top. Signing up for the franchise is definitely a plus for you since advertisement would be done on your behalf, although there is generally a set charge for mainstream advertisement purposes. There are several state laws in your region that needs to be known to you and appropriately registered if required. In addition, any franchise owner is required to file with his/her state's Federal Operational Commission, although specific course of action can differ depending on the state.

Personal Growth Strategy

A recommendable franchise firm before swelling usually conducts a research over the outlet. Amend the strategy of research they make use of to know whether there is requirement for their products and where consumers are more probable to purchase them owing to lesser levels of competition from other associated firms. A personal research needs to be followed to see if your outcome would match with what by now has been acknowledged by the parent firm. Take time to communicate with others who are already in the industry or had ever owned an equipped franchise prior to choose to initiate one on their own before starting a franchise. Taking right franchise strategy is crucial.

The long-term goal of any franchise program is to establish balanced, integrated, successful franchise relationships with qualified individuals who support your company's goals and image. Creating enduring franchise relationships requires a comprehensive strategy and vision that addresses all aspects of the franchise development endeavor. The tax rules surrounding franchises are often complex, and an attorney, preferably a specialist in franchise law, should assist you to evaluate the franchise package and tax considerations. An accountant may be needed to determine the full costs of purchasing and operating the business as well as to assess the potential profit to the franchisee.

To become an ideal franchisor it takes a lot of effort and time. If an entrepreneur takes one step after the other with great consciousness there is all possibility of a successful franchise empire can be created with a winning franchisor.

February 06 2013

francispryor

Know: How to Franchise a Business – Part - II

To be capable of being franchised, a business must meet the following criteria:

  • The business needs to be proven - you cannot franchise an idea – you need to show potential franchisees that the business works in the way in which they will need to run it
  • It also needs to be transferable, i.e. capable of being run in multiple locations, using the same system, brand and quality.
  • The franchise also needs to be something that you can teach people to do. There is little point having a franchise that only three people in the world would be capable of running.

If you were to franchise your business, one of the first steps would be to conduct a series of research studies to truly understand what your particular industry segment looks like in the franchise marketplace. If you are in the restaurant business, the fast casual restaurant franchises should be reviewed and understood as to how they implemented and executed their franchise expansion strategy. There should also be a legitimate study done on the financial dynamics of your franchise competitors.

Write down a good business plan. The business should be clear and realistic and it should contain information on funds, objectives, mission and vision of the business. Then design a good operations manual. This manual will act as an instructor to the franchisees on how to run their entities.

In order to franchising a business, one of the most importantsteps you need to take is the compiling of a franchise agreement. It is a very important document which defines the level of quality and service you need to maintain. A franchise agreement sample can very well help you in this matter by providing you with basic guidelines and elements you need to compile within.

The franchise agreement sample is a basic design of the agreement and it contains general terms and conditions on franchising. It contains the basic terms and rules for the new franchisee. The franchisor just needs to fill out the information required for the business, such as the address or location of the business, the name of the brands, methods of advertisement, and the payment details, etc. However lot of these terms and conditions would change depending on the nature of one’s business and hence it is important to get expert advice. The sample only serves as a guideline.

So, you will need to ensure you have a franchise agreement ready for potential franchisees to signwhenever you are ready to franchise your business. By using the franchise agreement sample, you will save time and money for both the parties.

As a franchisor you will be building a brand with a reputation that other people will want to buy into. You will, therefore, need a brand which is distinctive and appropriate for all the places you would want to have franchisees in operation. It will also be your responsibility, and your obligation to franchisees paying for the benefit of using your brand, to protect it against abuse, both by outsiders and by ex-franchisees. You will, therefore, need specialist advice on protecting your trade and service marks.

Although expansion through franchising can be less expensive than organic business growth, it still isn’t cheap and is not an overnight process. There are numerous up-front costs, some of which have been discussed, and to franchise a business properly takes a lot of investment and effort. That said, it can provide growth that you couldn’t even dream of through the usual organic methods. It is vital to plan properly, get the right professional advice and have the appropriate support and finance in place to see it through. If done properly this could be one of the most successful strategic decisions that a business makes.

francispryor

How to Franchise a Business and Why? Part-II

During the previous part of this we discussed why a traditional business should be converted into a franchise business model. In this piece of write-up we will discuss how to go about this job.

Once the fundamentals of franchise business model are decided, you must determine the caution money, franchise fees, royalty percentage/amount, and advertising fund fees, etc. In addition, you will need to develop several documents including your operation manual, franchise agreement, disclosure documents, training materials and many more.

Those who think why franchising is the best way to expand a business should know that they get 100% commitment from their franchisees who have a stake in the business rather than staff or managers who simply work for a salary and may be less motivated. Franchising enables those to utilize the entrepreneurial skills of the franchisee network to achieve better results than that might otherwise be achieved.

For any company who wants to franchise their business, it is important that the business model has been carefully researched and refined. It needs to be simple enough to be capable of being replicated and the business system itself has to be clearly set out into an operations manual that covers every aspect of the business.

The Franchisor has to understand that this is not a quick way for him to make money, but a sensible way to expand and get on board people that are equally committed towards the business you own. After you decide to franchise your business, you might ask yourself: how can I franchise my business?

There are several steps to franchise a business. In order to learn “how can you franchise” a business, you need to first make a decision if franchising your business is a good decision or not! Once you decide to franchise your business; you have to decide a brand name for your franchise. Take ample amount of time in deciding a good name for your franchise as it would be having significant impact in the long run.

Design a business plan. Under the business plan, outline your franchise mission and vision. The business plan should also direct how you will help the franchisees and the cost of the business. Basically, write about how you intend to run your franchise enterprise. Make an operations guide that explains clearly how to run an outlet. You can also take help of franchise consultants, who will guide you through converting your business into a franchise.

These are few basic guidelines for those who want to know “How can I franchise”. This is a very serious business decision, so you should always take your time with it. Make sure that you prepare yourself for a long road that is not necessarily very easy because that is exactly what franchising your business involves. Franchising is being employed by more businesses and more types of businesses than ever before. Today, almost any product or service can be distributed through franchising.

Finally, opening another location takes time. Hunt for sites. Negotiate leases. Arrange for design and build-out. Secure financing. Hire and train staffs. Purchase equipment and inventory. The end result is that the number of units you can open in any given period of time is limited by the amount of time it takes to do it properly.

francispryor

Business Consultancy - A Profitable Idea: Part - 2

Let’s discuss some of the ingredients that are essential to become a business consultant. I would also like to focus on the areas where a business consultancy is absolutely necessary.

Providing Guidance about New Business Ideas

It is a huge step for anyone who is getting started in any business. Many people bring an end to their dreams because of the fear of failure. Consider investing in a franchise, if you have issues going it alone. If you have any franchise related ideas or doubts, is my business franchisable, then you can share it with any business consultancy to check the feasibility of the business plan. It vastly tends to generate income much earlier and also increases your chances of success. There will be many occasions where you just don't know how best to help a client business, even if you specialize in a specific industry or field. A business consulting franchise can offer a powerful support structure.

To succeed in the consulting business, you must be an expert at recognizing problems and shaping solutions to those problems. It is important that you have excellent time management skills to enable you to submit your deliverables on time, handle various clients simultaneously, and work on expanding your cadre of clients. You must also have exemplary networking skills to help generate word-of-mouth campaign for your consulting business.

Training Provision and Knowledge Gathering

For example, when you first get started, and on an ongoing basis, a good business consulting franchisor will provide you with both training and knowledge about the business. They will also be able to offer you marketing strategies that your client businesses may require and they will offer you advice and help with much specific business growth, whatever line of business they are in. You should also have the benefit of a selection of reference materials and marketing materials to use on an ongoing basis. In general, franchisees are better skilled, better financed, better supported and better motivated to win new business than new business start-ups on their own. You could face an uphill battle, if you are starting your own business consultancy, and doing it all alone.

You Are Your Own Boss

You can work when and how you want as you will be your own boss and you can work with flexible time schedule. There nothing like of being in control of your own working hours and being self-employed. You can probably work from home, or a small office, so overheads and business expenditure can be kept to a minimum, leaving you with a higher income as a business consultant.

Earning Substantial Incomes is Easy

You can become financially free, which means you no longer have any monetary worries as a successful business consultant. There are considerable earnings to be made, if you are assisting businesses to get improved revenues and higher profits. Particularly, if your agreement with your client businesses includes them paying you a percentage of the additional profits you helped them to produce then you will be able to generate exorbitant amount from your consultancy service rendered. So business consultancy is the way out, if you would like to put your business skills in a positive way, especially if you want a change from running your own business or working in someone else's business. If you feel that you are not getting the rewards you deserve, a business consulting franchise may be the perfect way to go and you would never have to bother, “Is my business franchisable?”

Here are few franchise business areas just to mention, in which you could initiate your business consultancy service.

Small Business Consulting Franchise: It provides a franchise business consultant experienced in the issues that small firms face.

Business Coaching Franchises: Franchise business consulting that develops a company’s human resources, often focusing on attitude or team cohesion.

Training Franchises: These consulting business opportunities can be anything from hour-long meetings in the office, to several-day seminars, to weekend retreats. A consultancy business for sale in this subfield will likely specialize further.

Sales Training Franchise: It includes business training franchises that work specifically on improving the sales team’s techniques and strategies.

Management Training Franchise: Management training franchises teach the tried and confirmed methods of managing a workplace environment for the health and productivity of employees.

International Business Coaching: These consulting business opportunities are worldwide and often cater to multi-national corporations.

Marketing Consultancy Franchise: A consulting business opportunity that involves design of publicity campaigns and targets the most viable customers.

Regardless of specialty, a business coach franchise earns its revenue by assisting in business strategy and processes.

Business consulting opportunities range from organization structuring, long term business planning, marketing strategy, financial advice, employee benefit structuring, and logistics. A business coach franchise may help companies develop a business continuity plan to prepare for unexpected events.

February 05 2013

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Know: How to Franchise a Business – Part - I

Franchising a business can be an effective tool to ensure its growth and larger market share. Many businesses have gone this route and become global leaders in their line of operation. Such companies include: McDonald's, KFC, Dominos, Pizza Hut and many more. Franchising can not only strengthen the brand and reach of a company, but it can also act as a very good method of securing its future. If done well, franchising can turn a small business into a major brand. Franchising your small business may be a good way to grow fast. Figuring out whether or not franchising will work for you is a matter of knowing your business and yourself.

It would be an exciting opportunity for anyone to know how to franchise your business and to open one’s first business as there may be many business houses that would be running their businesses successfully. It would be a profitable business for them as they might be planning to turn their business into franchise business as soon as possible. However, if you are planning to turn your business into a franchise model then it would not be a simple task and it would require a lot of hard work and skill.

Knowing how to franchising a business is essential. There are different ways in which a business owner can convert his traditional business into a franchise model. You will want to consider the best opportunities that match your lifestyle, business and financial goals. Without knowing how to franchise your business you could spend a tremendous amount of time and effort trying to find the exact way.

Franchising can not only strengthen the brand and reach of a company, but it can also act as a very good method of securing its future. If done well, franchising can turn a small business into a major brand, but what does it take?

The first thing to understand is that franchising is not a tool to fix a bad business. It is not there to provide injections of income from other people to underpin failings elsewhere in the business. The franchising model is used to replicate a successful and proven business, using the investment and skills of new individual business owners, who will be trained and supported to run the business under the agreement, conditions and format, as proven and agreed. However, not every line of traditional business can be converted into a franchise model. There are several criteria that need to be fulfilled for a business so that it can be considered for being converted into a franchise model. Click here to know the required criteria.

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How to Franchise a Business and Why? Part-I

In general, companies decide to begin franchising for one of three reasons: lack of money, people or time.

The primary barrier to expansion that today's entrepreneur faces is lack of capital and franchising allows companies to expand without the risk of debt or the cost of equity. Since franchisees provide the initial investment at the unit level, franchising allows for expansion with minimal capital investment on the part of the franchisor. In addition, since it's the franchisee, and not the franchisor, who signs the lease and commits to various service contracts, franchising allows for expansion with virtually no contingent liability, thus greatly reducing a franchisor's risk.

The second barrier to expansion is finding and retaining good unit managers. All too often, a business owner spends months looking for and training a new manager only to see that manager leaving the organization or worse yet, get hired away by a competitor organization.

Owning a successful business is more than just about making money; efficient planning and strategy are needed to be successful. Business owners have two choices for developing their business: to stay as a small informal company or to expand their business ventures. Most entrepreneurs tend to choose the latter because of several benefits. Business expansion can be done in different ways but one of the most commonly used methods is through franchising. Franchising your business is a proven route to rapid growth. However, becoming a franchisor is not an automatic ticket to success, especially in this challenging economy.

Franchising allows smaller companies to effectively compete with larger competitors. As a growth strategy, franchising provides you with the ability to gain market share by increasing your points of distribution (your units). You will be able to grow and expand your business faster than other business expansion models and franchise expansion requires minimal capital as the initial investment at the unit level as the cost of establishment is covered by the franchisee. Your brand’s growth will not be limited to one or two cities rather franchising offers the opportunity to have multiple units throughout the world.

Many people may have questions in their mind, why franchise is a suitable way to expand their business.

For a company with a product or service to sell, franchising provides an excellent opportunity for rapid expansion without an enormous outlay of capital. It is a distribution system that allows a business to conserve capital, and at the same time achieve faster market penetration; making it an attractive proposition for most business owners. In order to franchise your business, you must have a successful business concept/prototype as well as you should be able to demonstrate that it can be replicated. Most often, the success of a business can be dependent upon its location or the staff. The fundamental principal for the success of a franchise is its ability to replicate its success.

Click here to read the second part of this article.
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Franchise Consultants for Better Business Gains

Franchise consultants provides specialized attention and focus from people who have been in the business of franchising and licensing and worked with businesses making the transition from a company owned chain into that of an independent distribution model that is required during the process of developing and implementing a franchise system. A franchise consultant provides professional advice to entrepreneurs interested in franchising.

It is important to work with consultants who have on site experience in the field of franchise development. Generally, franchise consultants work with a business organization and help its transition into an independent distribution model. A significant constituent of assessing a franchise consultant is that they should have expertise in working with new organizations in this field from the ground zero. As opposed to someone who works with companies making the first step into the world of independent distribution models, it is an extremely different sphere of responsibilities and experience when someone has worked with a mature and stable franchise system that has been in the business for years.

One of the most beneficial factors in the franchise business market is the role of the franchise business consultant. These franchise experts guide you in your franchise search. Franchise consultants provide expert advice on everything from selecting the right franchise, starting your business, helping you with your business plan, sharing with you markets’ best practices, assisting you in better understanding the franchise agreement and answering any questions you may have throughout the entire franchise selection process.

Franchise Consultants in Chennai and Franchise Consultants in Kolkata come in all shapes and sizes. There are big firms that have been in business for years working with many of the industry’s most flourishing organizations. These organizations tend to be less attentive to smaller companies. They will not provide specific, focused attention on smaller groups entering the franchise field, even though they are well decorated and experienced. There are also franchise consultants who have held positions with large, established companies and have worked in the field. They offer consulting services to new or existing franchisors by taking their experience to the field of franchising. These consultants are a good fit for guidance in specific aspects of their organization's management or for existing franchise organizations.

Franchise business consultants can also provide options when purchasing a franchise. They may refer you to third part franchise funding companies and they may advise you on best business practices for successfully launching your franchise. A franchise consultant can help you draw up a sound business plan and set realistic goal as it is essential for any type of business to have defined targets from the beginning.

There are also document development franchise consultants in Chennai that put together documentation to be used for starting a franchise organization. Documentation needed to offer a franchise in a template format that can be altered to fit any new model is provided by these organizations. These organizations typically provide consultative guidance and support for a new developing organization, but do offer the documentation at a cut-rate price.

There are also franchise consultants in Kolkata who specialize in the development process with a team of focused consultants who work in tandem with a new franchise organization. The advantage to these groups is usually these organizations will also support in sales and new business development for locating and closing sales and in general, that the investment is more in line with what a growing company could afford.

Franchise consultants pre-screen each franchise company, before they present them to you and their expertise can greatly reduce the time you spend researching to find the perfect business fit. These franchise consultant experts study the franchise's litigation and performance track records and evaluate the franchise's product or service to ensure they match your criteria and selection of interests.

The important part is to have in depth discussions and research on each so that you make the decision based on your needs and preferences as there are many options and opportunities for different sorts of consultants. Franchise Consultants in Kolkata have a wide range of services that can provide and should provide to a new company, personalities, styles and preferences prior to making the transition into the industry.

A renowned franchise consultant helps his clients (franchisees) in accessing the odds of success and failures of the franchise offered, understanding the franchise agreement contract, realistically examining the personal strengths and weaknesses, uncovering the free and fee-based training programs for potential franchisees. They also help the franchisors by assisting them in screening franchisee candidates and investors, evaluating companies' franchising ability, building brand recognition and loyalty and so on.

In short, to franchise a successful business or to start a franchising business, one requires a franchise consultant. As it is a colossal decision that requires a lot of work, therefore, it is worth seeking an expert advice to get into a franchise business.

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Business Consultancy - A Profitable Idea: Part - 1

The dictionary defines a consultant as "an expert in a particular field who works as an advisor either to a company or to another individual." Sounds pretty vague, doesn't it? But unless you've been in a coma for the past decade, you probably have a good idea what a consultant is. A business consulting business provide specialized skills and knowledge, as well as a perspective that business insiders lack. The services that a business advisor franchise provides can range from consulting, marketing, and legal help, among many others.

Setting up a business consultancy on your own is a profitable idea. You can also invest in a franchise with an established business consulting company that is recommending a franchise to practice business consultancy, more often than not, but not always, in a specific geographical area. You should receive the backing of their brand name, training, ongoing support, business and analytical tools, marketing resources, and maybe in house expertise to call upon when needed in return for the franchise fee. Franchisor is the company offering the franchise. The person investing in the business consulting franchise is called the franchisee. However, business consultant is the interface between the franchisee and the franchisor who helps both the parties in different ways. The franchisee has got the money to invest in any venture but don’t know where to invest. In this scenario, a business consultant can help him in deciding which franchise option will be suitable for him taking into account his past business credentials, professional expertise, local market demand, capital investment, and ROI. As far a franchisors are concerned, they are always in look out for trusted local business partners (i.e. franchisees) who will be working as their representatives in all different local markets. Here, business consultants can help them out in selecting good local business people who can carry out their business with trusted steps. So, in a nutshell a business consultant put both the franchisor and franchisee into a win-win situation.

If you want to become a consultant, the first step is to take an honest look at your own training and experience. You may have worked all your life in a particular field and received special training and education along the same lines. If you've worked as a special event coordinator for an exclusive island resort, you can offer your services as a consultant who helps plan, develop and execute theme parties for corporations and other hotels.

Being a business consultant is not only a lucrative career option but also gives you professional independence. It paves ways for your creative freedom and helps you explore newer avenues. If you are person with self motivating abilities, always strive to learn new things, and looks out for untraded paths then this is one career opportunity that you must try. Let’s discuss some of the advantages of becoming advantages of becoming a business consultant during the next piece of article. Read more

November 30 2012

francispryor

India Franchise Consultants Help You Expand Your Franchise Business

The term franchise itself is explained as an opportunity in the Indian Market. Franchise opportunity in India has benchmarked itself as one of the leading sectors in growth and development. India’s vast geographical expanse, multilingual culture, strong and powerful economy and also growing middle class all clubbed together provide excellent franchise and business opportunities in India. Franchise business is riding high these days in India and there is a sudden boom in various sectors such as food and beverage, raw materials, power supply, fuel, tourism, services and even commercial ventures.

A franchise consultant is basically a financial advisor. You will help people to understand how the franchise process works, and also tell people about financial requirements, regulations and laws. By offering this guidance you can often sell a successful franchise business.

It is very difficult for a franchisor to look out for a perspective franchisee. Franchise consultants can help them both narrow their focus and assist them in making the right decision. A franchise consultant will go through all options available and offer you the best. The main role of a good franchise consultant is to direct, advice and guide individuals who seek expert advice on the best options available, prior to making a business commitment. Basically, they are there to support the potential franchisee in making a success of the franchise project.

Consultants must therefore be able to base their advice on valid experience, allowing them to find the path most suited to their client, in accordance with the profile, requirements, capital and expectations of the potential franchisee. A good consultant is like a good tailor, able to create a made-to-measure suit for their client, whether franchisor or franchisee. They can decide whether your investment into a particular business would be a lucrative or not. The franchisor consultant not only brings them together but also plays a significant role in streamlining the ‘matchmaking’ process for the franchisors and franchisees.

There are many cities in India that provides ample opportunity for franchise business. One of such city is Chandigarh.

Chandigarh is a city and union territory in India that serves as the capital of two states, Haryana and Punjab. There are about 15 medium to large industries including two in the Public sector. In addition Chandigarh has over 2500 units registered under small scale sector. The important industries are paper manufacturing, basic metals and alloys and machinery. Other industries are relating to food products, sanitary ware, auto parts, machine tools, pharmaceuticals and electrical appliances. Yet, with a per capita income of Indian Rupee symbol.svg 99,262, Chandigarh is the richest city in India. Chandigarh's gross state domestic product for 2004 is estimated at $2.2 billion in current prices.

The city offers franchising opportunity in various sectors. There are plenty of opportunities for food and beverage franchise, retail franchise, business franchise, play school franchise, health care franchise, fitness franchise, education franchise and many more. If you are looking for the best franchise opportunities in Chandigarh then franchise consultants in Chandigarh can help you making the best decision and choose a business according to your preference and budget. Those business enterprises who wish to expand their business through franchising model can also take help of franchise consultants in Chandigarh. These consultants will provide you step by step guide to convert you traditional business into a franchise model. Apart from Chandigarh, franchising has also grown exponentially over the last couple of decades in other cities of India and the trend seems strong in the near future. If you are staying in other parts of India and wish to expand your business, then you can take help of India franchise consultants. These consultants specialize in growing and advancing small and medium sized businesses and can formulate professional and sound business strategies and goals. They have proficient knowledge on franchise principles, practices and philosophy.

The franchise consultants are employed by both, the franchisors and the franchisees. Hiring a renowned franchise consultant can give your business the edge it needs for success. The amount of fee paid to the franchise consultant varies. Usually these franchise consultants are paid by the franchisor when the deal has been finalised. They also help the franchisees in finding financers, accountants, lawyers, and franchise real estate experts. The franchisee can save money and precious time in searching for a perfect franchise business by hiring a franchise consultant. It may not be possible for the franchisee to investigate the whole market thoroughly as the sheer volume can be overwhelming. However, a franchise consultant may know many players personally or by reputation.

India franchise consultants are in such high demand these days as the franchising industry has become so common and widespread. Each year, industries are applying franchising growth strategies. Within many other industries, including the information technology, water purification, health care, education and even in manufacturing industries, franchising is showing significant growth. Bringing experienced Indian franchise consultants in on your business discussions and decisions can help you a lot in all stages of your franchise's growth. As a business owner, choosing to hire a franchise consultant is one of the most important decisions you will make.

To conclude it can be said that consultants are a must for the success of every franchisor and his business. However, they should be chosen only after an intensive research by the franchisor.

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Expand Your Business Across the Globe withInternational Franchise Expansion

Franchising is a methodology that can help you expand your business nationally and internationally as well. There are a number of methods your business can use to develop international operations and build a global brand and one of such method is international franchising.

Many franchisors initiate their global franchise efforts through serendipity. And that chance encounter leads to an international franchise opportunity. But encounters like this aren't an effective strategy for international growth.Unless you're one of the lucky franchisors that have a strong international candidate fall into their laps, you'll need to do some proactive marketing to generate your international prospects.

Franchisors targeting international growth are well advised to start by targeting a specific country or group of countries in which they would like to expand. To do so, the first step is to identify the best countries for your particular concept. Factors such as franchise climate, the market for your particular product or service, competitive factors, proximity, language barriers, culture, political climate and relevant legal concerns should all be factored into the decision.

International franchising is fast becoming one of the most popular strategies for companies to break into international markets. Franchising allows a company to leverage the local market knowledge of its franchisees as it expands into new geographic areas. It is a viable, and valuable, way to expand a franchise opportunity beyond the boundaries of India or the country in which the franchised business is based.

There are many reasons for a franchise business to consider international franchise expansion; the home market is saturated; gaining economies of scale; increasing sales; or filling a gap in an international market with the franchisor’s product or service.

A franchised business needs to determine if they are truly ready to expand,before considering international franchise expansion. Strategic advantages of experience, scale economies, product differentiation, capital requirements, and location are important determinants of international franchise expansion and must be considered prior to launching any expansion plan.

There are three main routes to market for franchisors seeking international franchise expansion. These are Master Franchising, Development Agreements, and Wholly owned subsidiary.

A number of different structures have been developed to deal with the difficulties in overseeing international franchise networks, the simplest being master franchising. In this situation the franchisor awards a master franchise to a suitable indigenous individual or organization in the target country, often in return for a significant investment. The master franchisee secures exclusive rights to develop that country under the franchisor's brand, trading style and system either by establishing a sub-franchised network, master franchisee-owned outlets or a mixture of the two.

Once you've targeted an appropriate market, prospective international franchisees can be generated in a number of ways: trade shows, franchise shows, trade missions, the internet, targeted public relations, print advertising, direct mail and the use of brokers are among the most popular means. Perhaps the most difficult method is to try to go it on your own. This involves the creation of an international lead generation strategy with all the complexities of the international sale. Unless you have a strong knowledge of a particular market, this strategy is likely to generate a substandard partner or fail entirely.

With development agreements, a developer is granted the right to develop and operate a certain number of outlets within a given territory or area. However they do not have the authority to sub-franchise the outlets to third party franchisees.Regardless of the means used to generate your international prospects, unless you're relying entirely on serendipity, you should plan on spending money in the sales process. Travel costs alone will likely run in the tens of thousands of dollars before the deal is finalized.

Area development programs provide all of the general advantages of multiple-unit franchising, such as the potential for accelerated growth with less investment or capital demands upon the franchisor. A development agreement offers the franchisor more direct control over the franchisee and the development of the territory.

Few Guidelines in International Franchise Expansion:

1. Take the long view. Going international should be a strategic decision. Senior management must be willing to build a solid foundation for a successful international business on an ongoing basis, not just to make a couple of deals for the initial fees.

2. Start with a plan. Establish a business plan with achievable goals and a realistic budget for international development. Don’t jump on leads until your plan is in place.

3. Protect your brand. Apply for trademarks early—before you start to market in a country. And don’t ever let a candidate do it for you!

4. Clearly define your market and competitive advantage. Candidates must be convinced that your business can compete in their marketplace with a new and different concept. The better you know the new market, the better your negotiating position with potential partners.

5. Establish a good track record at home.

Viable international candidates will do their own due diligence. If they don’t want to know how your business is doing and has done in your home country, they’re not good candidates.

6. Have a documented system for each country. Your training, support and marketing programs must be based on a business model that can be transferred to another country and culture.

7. Set up an Intranet. It’s the most cost-effective way to manage your organization and provide international training and support. And it’s accessible 24/7 in any time zone.

8. Be ready to monitor and enforce your business systems. Get system standards and reporting processes in place and follow through just like you do at home.

9. Do your due diligence. You must know who you are dealing with to avoid unpleasant surprises in the future. There are services available to help you find all the details you need.

10. Borrow some experience. Experienced target country advisors could help you minimize mistakes in market entry. They can also help conduct due diligence.

Many franchisors seeking to expand internationally will set up a wholly-owned subsidiary within the foreign country. The wholly-owned subsidiary enters into franchise relations with franchisees, whether they are single unit franchises, regional master franchises or area development arrangements. In this case, the subsidiary is entirely separate from the foreign parent company and therefore the parent company is insulated from liability.

In order to make your international franchise expansion hassle free, you can take help of international franchise consultants. These consultants will help you in identifying problem areas and proposes ways to overcome the weaknesses in your business model. Before entering any country it is extremely important to understand the countries legal system and demographics. An international franchise consultant will also help you in this regard.

International franchise consultants also conduct meetings with various business professionals, financial agents, as well as government officials of different countries. They also provide marketing and advertising services/advice. It is of utmost importance that the consultant chosen has in-depth knowledge of business management skills, awareness of the recent foreign policies, legal documentation, and political economic developments that may affect foreign businesses, solid administrative skill, excellent communication skills and strong international network of associates that can give accurate information about the business climate and markets in different countries.

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Key Steps to Franchising

Franchising is one of three business strategies a company may use in capturing market share. The others are company owned units or a combination of company owned and franchised units.

Franchising is a business strategy for getting and keeping customers. It is a marketing system for creating an image in the minds of current and future customers about how the company's products and services can help them. It is a method for distributing products and services that satisfy customer needs.

Franchising is a network of interdependent business relationships that allows a number of people to share:

  • A brand identification
  • A successful method of doing business
  • A proven marketing and distribution system

In short, franchising is a strategic alliance between groups of people who have specific relationships and responsibilities with a common goal to dominate markets, i.e., to get and keep more customers than their competitors.

The decision to start a franchise can prove to be very financially and emotionally rewarding and it should not be taken lightly. There are some crucial steps to franchising and they need to be followed religiously to achieve success for franchise business, as well as the franchiser.

To be successful in franchising you must understand the business and legal ramifications of your relationship with the franchisor and all the franchisees. Your focus must be on working with other franchisees and company managers to market the brand, and fully use the operating system to get and keep customers.

Firstly, understand the meaning of franchise. It is a legal arrangement in which one party called as “franchisor” grants the rights to market its products or services using the trademark of their business to an individual or group of people called as “franchisee”. Following the steps specified by the franchiser, the franchisee can then market the products or services. Understanding the meaning of franchise is crucial before entering into franchise business model. Franchising is a method of marketing and distributing products or services of a particular company. Both parties involved in a franchise business model share a common interest in making sure the company is successful.

Secondly, list all the advantages before you actually decide to franchise your business. Consider that by franchising, you will be able to expand much more quickly and less expensively. Another advantage is the fact that the purchasing power increases with the more franchises that exist. You can fulfill your dream of becoming self-employed and start running your business more quickly, if you consider purchasing a franchise.

Thirdly, starting a franchise has its disadvantages like any other type of business venture. You might lose a significant amount of control over your business as a franchiser. You might lose creative freedom as you need to follow the requirements established by the franchise owner as a franchisee. Certain percentage of your profits will have to be paid to the franchiser.

Fourthly, to start a franchise in your country, you need to gauge both the demand and supply aspects. Depending on where you live, the legal requirements may greatly vary. I0f you are a franchisee, you should consider a pilot operation that has an audited set of accounts.

Next step will be to ensure that the franchiser's rights are protected. The franchisee will obtain a package outlining all the intellectual property rights at the beginning of the franchise agreement. The intellectual property may consist of a patent, copyright, registered design or trademark. The franchise agreement will specify how the licenses can be used and which licenses will be awarded to the franchisee.

Next you need to work on establishing a franchise agreement, if you are considering offering franchises. According to the specified legal obligation and intellectual property rights, this document will permit the franchisee to run the business. The agreement should protect the franchiser and present a workable document to the franchisee and it must meet local law requirements.

You need to determine the fees involved before starting a franchise. You will be required to pay an initial fee to the franchiser for the privilege of joining the franchise network as a franchise. You also need to understand that you are obligated to provide support, training, a detailed operating manual and a franchise agreement to the franchisee, as a franchiser. You also agree to avoid competing by not granting other franchises in the same area and to promote the brand.

As a franchisee you own the assets of your company, which you have chosen to invest in someone else's brand and operating system and ongoing support. You own the assets of your company, but you are licensed to operate someone else's business system.

Finally, your desire to become a franchisee must be grounded in your belief that you can be more successful using someone else's brand and operating according to their systems and methods, than you could if you opened up your own independent business and competed against them. You want to look for a franchisor who is building a system of interdependent franchisees who are committed to getting and keeping customers, to growing faster than the market, to growing faster than the competitors, and to do all of that with high margins. When you discover a franchisor who understands this relationship, you have a franchisor worth your consideration.

Rapid growth is witnessed in franchise sector, although there are still such a large number of businesses missing out on this opportunity. The competition is still huge, so are the profits. Follow the above mentioned steps to franchising, and succeed.

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Succeed Beyond Your Limits through International Business

International business involves two or more countries and it is all business transactions-private and governmental. It comprises a large and growing portion of the world's total business that is the reason why one should be interested in international business. Today, as most sell output to and/or secure suppliers from foreign countries and/or compete against products and services that come from abroad, almost all companies, large or small, are affected by global events and competition. International business opportunities and trends depend on several broad factors: the economic growth of these countries, the ease of doing business there and the friendliness of their trade policies.

Economic growth means more purchasing power from customers and businesses in that country who can potentially buy goods and services from one’s business. It also means more potential suppliers one can buy products from. The friendliness of trade policies make it easier to sell to willing customers and buy from willing suppliers. The ease of doing business makes it easier to set up shop and invest in these countries, which in some cases is necessary to conduct deeper levels of buying and selling in that country.

The first time can be very worrying experience for many business owners for business development and the prospect of trading internationally. In today's day and age there is simply so much money in international trade that businesses often cannot afford to miss out, although the choice to locally source products has always been a favored method of conducting business. Managing to produce high quality products at a fraction of the price; something which could seriously increase your businesses profits Due to lower labor costs, lower tax and generally lower production costs countries such as India and China.

One of the best ways to make profit all over the world is to take advantage of an international business opportunity. On the Internet, this kind of opportunity can be done and it can be promoted to all types of people all over the world. Since you literally do not have any limitations when it comes to marketing your product or service, this is one of the biggest advantages.

Although you will have to deal with people that do not know your language it will be a enormous market for your capture because not only are you going to be triumphant for getting people in your definite country but also the diverse countries around the world. The only thing that restricts your profit when it comes to limitations is not being able to endorse all over the world and this is why many people who just get engaged in local businesses are by no means able to go to an additional level in profits.

International Business in India looks really lucrative and every passing day, it is coming up with only more possibilities. The growth in the international business sector in India is more than 7% annually. There is scope for more improvement if only the relations with the neighboring countries are stabilized. The mind-blowing performance of the stock market in India has gathered all the more attention (in comparison to the other international bourses). India definitely stands as an opportune place to explore business possibilities, with its high-skilled manpower and budding middle class segment.

Sectors having potential for International business in India:

  1. Information Technology and Electronics Hardware.
  2. Telecommunication.
  3. Pharmaceuticals and Biotechnology.
  4. R&D.
  5. Banking, Financial Institutions and Insurance & Pensions.
  6. Capital Market.
  7. Chemicals and Hydrocarbons.
  8. Infrastructure.
  9. Agriculture and Food Processing.
  10. Retailing.
  11. Logistics.
  12. Manufacturing.
  13. Power and Non-conventional Energy.

Sectors like Health, Education, Housing, Resource Conservation & Management Group, Water Resources, Environment, Rural Development, Small and Medium Enterprises (SME) and Urban Development are still not tapped properly and thus the huge scope should be exploited.

When you're finally able to start your own international business, dedicating the time to learning about the facts of the business development opportunity will pay off in the long run. For you to learn and get familiar with the different languages and countries will take some time but remember that it will take some time to investment into it and it is worth in the long run.

Just make sure you take your time when it comes to choosing one from the many different types of international business opportunities available on the Internet. Make certain you're comfy with the prospect and that they offer a very helpful service at a very reasonable price. When people are very satisfied with what you are offering and continue to stick around, this will prove to be a huge help in the long run.

It was evident till a few years back that India had a marginal role in the international affairs. The image was not bright enough to be the cynosure among the shining stars. The credit rating agencies had radically brought down the country's ratings. But, as of now, after liberalization process and the concept of an open economy - international business in India grew manifold. Future definitely has more to offer to the entire world.

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Make India Master Franchise a Big Success

Global brands are encouraged by multiple factors in their India Entry Strategy for India Master Franchise arrangements like acquaintance of the master franchisee with local environment; marketing/operational expertise of the master franchisee and local sales; negligible government approvals; ready availability of marketing and sales channels; sharing of expenses; reduced investment; lower financial risk and no mandatory requirements to recruit local workforce. Further, a major factor for boom of master franchising arrangements in India are the regulatory restriction on retail trading by foreign companies which has statutory conditions like 30% local sourcing for getting 100% FDI Approvals.

The India Master Franchise Agreements are fairly complex documents due to the nature of the business and consideration involved. A typical master franchise arrangement facilitates the master franchisee to build up the business in the territory under the franchisor's brand name and trademark with or without authorization to manufacture/sell the products locally, offers guidelines for operation of business and specifies returns for the franchisee. Proper steps must be taken to make a successful India Entry Strategy. The Indian franchise industry is also not very mature in that sense and hence having an experienced franchise consultant who understands the market deeply is extremely critical to your success in India. They will be able to work with franchise lawyers in India and help them create the right franchise model for your business.

However, several franchisors have grown across the globe through a standard brokerage policy. They work with franchise brokers and give them a finder’s fee for getting them the right master franchisee. This may not work in India, as the industry is not mature enough to be able to give you the candidates that are the right fit. This generally ends up in signing not the best possible candidate but the only one that was available during that time. So the strategy of providing their standard Master Franchise Agreement to start with and then the local master franchisee suggests revisions ( which is generally not appreciated many revisions by the franchisee in the interest of uniformity of standard agreements across all territories), and then defining the local reach may not work well in extremely diverse and unorganized market in India. You also have to understand that there is tremendous room for under- reporting of sales or business, if the strategy is not in place. A typical example of how reebok lost several millions due to leakages in India can never be under-estimated.

A franchisor must try and bridge all potential gaps by identifying and analyzing maximum "what if?" situations, from a contractual standpoint, while formalizing the agreements. Attempt to consider the scheme of arrangement detailed in the agreement vis-a-vis your technical, financial, marketing, manufacturing, sales and business planning, and human resource capabilities. To avoid a default situation later on it is advisable that the practicality of targets and schedules is essential. Keeping these points in mind will assist a lot in India Entry Strategy.

The calculation of working capital requirements from a master franchisee view point and localization of the business and documents from a franchisors point should include the costs of acquiring the requisite technical know-how and skills to operate the business; import of initial inventory; transportation of material; establishment, lease rentals and maintenance of franchise stores; translation/adaptation of manuals; local market research; salaries and professional fees from a financial standpoint, while analyzing initial and running costs. The franchisee may seek modification of business and other targets from time to time and also flexibility over payments to the franchisor.

An India Master Franchise or India licensee can remit royalty towards license of trademark up to the amount of 1% of domestic sales and 2% of exports without prior government approval from the standpoint of foreign exchange regulations. The Indian company can remit royalty up to 5% of domestic sales and 8% of exports and lump sum payment of up to US$ 2 million without prior government approval, if the licensor also provides technical knowhow to the Indian licensee. The payment for technical knowhow subsumes royalty for trademark license, in case both trademark license and technical knowhow are provided. Payment of royalty above the percentages specified above would need prior government approval.

It may therefore be advisable to separately specify the trademark license fee and royalty, franchise fee, fee for technical knowhow, etc in certain arrangements. Due care and caution must be exercised by the franchisee while formalizing India Master Franchise Agreements and assistance from professionals or colleagues having working experience of licensing agreements is advisable in view of complexity of the issues involved and the potential financial and legal exposure. Once the India franchise agreement and the India franchise model is ready only then should you embark upon the exercise of India master franchisee recruitment, not the other way round. If you do this correctly, you could well be on your path to finding millions of consumers loving and embracing your products/services for several years to come and investing a few 1000 $ upfront to get your long term India strategy in place is not an option but a necessity, to save you a lot of time and other expenses, to get your India act right.

October 20 2012

francispryor

Useful Steps to Franchising your Business

Franchising is one of the most exciting and enterprising industries in the world today. More and more businesses have come to embrace and utilize franchising as a means to expand their business. Franchising one’s business is a great way to continue with the success and growth of one’s business empire. It is also an interesting way to expand the horizons of one’s business beyond their personal capability and their operating boundaries with minimum capital requirement. If you have people asking if your business is for sale or if you provide franchise opportunities, then it's definitely the right time to consider whether or not franchising is a right move for your business or not!

Global outreach and presence is yet another goal that becomes quite achievable through franchising. Franchising allows a business to expand its global footprint rapidly, and thereby building upon the global presence and further boosting brand awareness.

There are few practical steps to franchising that need to be taken care of; in order to start the process of evaluating one’s business to see if franchising is feasible. Once one has decided on the franchising route then a clear plan of action is required.

The most important steps to franchising is to ensure that one’s business model is well thought out; a system is in place that can be conveyed to new franchisees, the system should be such that it can be easily duplicated and monitored. The standard operating procedures and manuals should be prepared so the franchisee can refer to it whenever required.

The second step is to chalk out a marketing plan for your brand. The logo, the name, the mission and vision statement should all be thought of sincerely. Since you intend to now go national or global it is important for you to appeal to the global audience you will be catering to in the near future. A good brand image not only helps you sell your product/ service but also helps you sell your idea to potential franchisees. Spend the time and money it takes to brand your business well so that it will be recognizable and desirable. The extra buck spend initially will go a long way.

The third step to franchising is to rethink your priorities. As an individual business owner, you have probably been solely focused on your business' performance. Franchising will require a shift in your thought process and priorities as you become the head of a franchised company. Not only will you be responsible for marketing and attracting new business, but also for training and supporting the new franchisees as they get their businesses off the ground. You will now need to focus on the macro scenario of your business and segregate yourself from micro management and day to day operations.

Under the fourth step to franchising your business, you need to decide on the initial franchise fee and the ongoing royalty payments. There are several legal agreements which need to be prepared in order to put your franchise on the market, from the franchise kit, the Franchise Disclosure Document (FDD) to the ultimate franchise agreement. A franchise operations manual and franchise training program are developed, often from scratch, to impart business operating skills to the franchise owner as well as ensure uniformity of products and services.

Under the steps to franchising, the final phase comes when you need to create all franchise information material including brochures and video presentations to market your franchises. You will also need to decide where you are going to market your business opportunity. Marketing your franchise is essential because it will provide all the franchise information to the potential buyers.

Franchising has tremendous advantages for business’s growth. But before franchising your business you need to be clear of your concepts and the operations using which you want to franchise your business. Accordingly make your business plan and the franchise plan. So, start franchising your business in order to make fast growth of your business.

francispryor

Take Help of Business Consultants to Develop Your Business

Developing a business requires strategy. To be able to quantify one’s goals, one needs to be clear about their methods and objectives. Business development will predominantly depend on how one manages their people and resources apart from the required capital.

One has to remember that business is a marathon. If one wants their business to develop quickly and effectively, one has to be ready to take the lead over competitors. If one’s business stagnates after the initial thrust then it is highly likely that the competitors will outstrip you immediately. Ergo, while developing one’s business one has to strive for the fact that their product is better, goods or service are unique to some extend and the prices are affordable to their potential customers. Ask yourself why would one buy my product/service, what is the unique selling point?

For business development, one of the basic requirements is to assess the current businesses value as it is more related to the growth and maintenance of the business. Business expansion solutions come in many forms and in order to be able to find the best method, each company will have to review themselves individually.

Business development includes many aspects like information about customers and competitors, positive and negative points of both i.e. of competitors and of own, target production in given time, customer services, demands of the market, sales, marketing and management of everything related to their business. Business expansion has no end for all the good companies. For their business, great business leaders always need a multi discipline and not just selling goods. To have a really good strategy about work is the keyword for a business.

A company can rely on business consultancy firm for developing its business. This can be really beneficial since a given consultancy firm will be in a strong and informed position to know a company's exact business growth strategy needs in any given situation. Business consultants of this consultancy firm provide consulting services for developing a business. They play a vital role in helping the company with its management development, business growth and development and sales development.

Business consultants can also help the company in the development of new marketing strategies, business start-up and even the development of new revenue stream. In order to develop business strategies for a company and to implement new and innovative ideas, they gather and segregate information about matters or affairs that are going on in the industry.

Business consultants can provide one with market research so one can better understand how to position their brand in the existing market. They create strategic plans that can heighten the company’s business in terms of business intelligence and private enterprise analysis. They are able to identify the reality of the market and think strategies accordingly.

Business development processes can be applied to virtually any corporate establishment; even small businesses require this kind of activity to remain in business and to achieve growth over a period of time. For a sound company which is able to withstand competitors over a significant period of time, business expansion never stops, it is an ongoing process.

francispryor

International Franchising – Things You Need to Consider

As globalization plays an increasingly prominent role in the world economy, businesses are actively seeking to expand their operations abroad. The rise of franchise operations in countries such as China and India is sending a strong signal to multinational franchising companies and newly-established franchises alike. International franchising is here to stay.

Franchising has gone international in various sectors. The world seems to be getting smaller as more and more companies scan the globe to put up franchise operations. The international franchising market has expanded to a large extent during the past few years. Countries throughout the world seem to be participating in the growth of industries that was previously limited within specific geographical boundaries.

A company considering franchising internationally or all for that matter needs to have a proven, repeatable business model in place. There should be documented systems in place that can be taught and standardized. International franchising will encourage efficiency and expose the loopholes in ingenious business model's operating system. If there are undefined or unrefined aspects to the original model, the franchisees systems will be drastically affected. The original business needs to have some brand value that may be recognizable and carry brand equity with the franchise offering. The business product or service offering should be competitive and have uniqueness in order to sustain in the long run.

Global franchising can be a great thing for entrepreneurs to start a business internationally, but must consider a number of things before making the executive decision to do so. Some of the pros of taking this action are that labor is much cheaper in some countries; there might be a greater demand for franchisees in some parts of globe.

When an entrepreneur is considering international franchising, they must really look at the complexities that come with it. Starting an international franchise can be very difficult and require extensive research in that market that might take years to finish. The company must ensure that raw materials and other requisites can be readily available in the country itself as it can drastically reduce the manufacturing cost. Language can pose another barrier to set up a franchise business model in an altogether different country. The franchisor needs to convert the franchise manuals and other franchise information documents to local language of the country where it wants to expand its franchises.

Certain legalities concerning the leasing of land or offices in a different country requires permission from the local government to use trademarks, tax related issues, and employee hiring.

International franchise is more popular than ever due to the huge growth potential it holds for both franchisors and franchisees. Foreign market growth has caused many companies to be successful with franchising overseas. Although the potential is there, it is still a very challenging decision to make. One must consider both the pros and cons of international franchising and make wise decisions before entering into an unknown territory.

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