Business services Jul, 13 2012

Low on cost and high on returns

Each one of us aspires to own a business. No doubt initiating a business venture requires an investment of hard earned money. However, with the emergence of low cost franchise opportunities boosting high returns, initiating and running a business is not s

By Abha Garyali
Sub Editor
Low on cost and high on returns

Low cost opportunities are a blessing for entrepreneurs having limited capital for investments but with big dreams of establishing themselves in the business world. Investing less in a business does not necessarily mean that the business would also be less fruitful. In certain cases, a low cost business opportunity can yield high profits. Let us find out the various sectors which demand low investments but capitulate filling profits.

Popular low cost franchise opportunities

With franchising becoming a popular business concept, more and more brands have taken the franchise route for rapid and successful expansion. Earlier, an entrepreneur with less capital had to take up a franchise from limited options available. However, with the increasing number of low cost opportunities which are highly lucrative, an aspirant can surely make the perfect choice according to his interests, need and passion. Let us have a look at some of popular low cost sectors in franchising.

Related: 10 Low Cost Business Ideas

Travel sector: During the last few years the travel industry has emerged successfully. This is in tune with the increasing number of clients who prefer hiring travel agents or portals for planning their trips. Considering the popularity of travel portals, it can be easily predicted that the future is as bright as the present. Aspirants who have an interest in travelling and are efficient in arranging stays and accommodations in hotels have a bright future. Moreover, this sector mostly falls in low cost category. Few of the key players in this section having low investment are Arzoo.com, Makemytrip.com, Travel port, Travo (I-Nova Group), Travel E-Point etc. Franchises of Thomas Cook and Cox and Kings also start from Rs 10 lakh. Ajay Upadhyay, Chief Operating Officer, Travel E-Point informs: “Franchise investment is in the range of Rs 40,000 to 50,000 which mainly goes into computing infrastructure. Our franchise fee is as low as Rs 5,000 to 10,000.” As informed by Debmalya Banerjee, Vice President, I-Nova Group, “To own a Travo franchise, one needs to invest Rs six lakh. A space of 300 sq. ft at ground floor in any prime location is the fundamental criteria for taking the franchise.” In addition Amal Purandare, Head- India Operations, Arzoo.com informs: “When a person chooses to be a part of the Arzoo Franchisee Associate Programme he can either choose Arzoo travel point or Arzoo Elite studio depending on his requirements and ability to invest.”

Courier services: Franchising in courier sector has grown with more and more players taking the franchise model for reaching out to far flung areas in the vast nation. Courier service companies are required to deliever important mails and parcels to any part, whether city, town or village in the country. Therefore, franchising can be the best mode for guaranteed delivery of the items. Moreover their low cost models allow courier brands to expand rapidly while giving high returns to the franchisees. DTDC Courier, Blue Dart Express, Blazeflash Courier, Overnite Express Limited etc are few of the players who are offering low investment franchises to prospective franchisees. DS Patel, Channel Head, DTDC said: “Investment by franchisees depends upon the type of city or town they want to set up their office. In DTDC we have four segments depending upon the city, as A B C and D category city. For metro city initial security deposit is of Rs One lakh, excluding the rental of the outlet, interiors, infrastructure needed. Therefore, an aspirant needs at least an investment of Rs 5 lakh.”

Related: Here are 100 low cost Franchise opportunities < 30 lakh

Florist services: Flowers are a great way to express feelings. Keeping this in mind the concept is getting more and more popular among entrepreneurs. This unorganised florist domain is slowly turning more organised with many players entering into the field. Ferns N Petals, Florista, Fiore and many other florists have emerged in the sector offering low cost opportunities to aspirants. As informed by Pawan Gadia, CEO, Ferns N Petals: “Being the pioneers of florist industry, Ferns N Petals came across infinite challenges in order to establish the trend out of the unorganised market of the most perishable product in India. However, we never faced the dilemma for Ferns N Petals growth and expansion. Our investment varies from Rs 8 to 10 lakh depending on store size and location along with the franchise fee of Rs 300,000/- (one-time non-refundable fee).

Related: Franchise Opportunities under 10lac

Financial Services: Financial services refer to services provided by the financial service companies. The finance service companies encompass a broad range of organisations that deal with money management. A few of these organisations include banks, insurance companies, consumer finance companies, stock brokerages, investment funds etc.  Companies like Motilal Oswal Securities Ltd (MOSL), Sharekhan Ltd, Sykes & Ray Equities (I) Ltd, SKI Capital Services Ltd, Ventura Securities Ltd, Wellindia Group, CFS Financial Services Pvt. Ltd are some of the companies offering low cost benefits to aspirants. Manish Shah, Associate Director - Broking & Distribution, Motilal Oswal Securities Ltd shares: “We are looking for aspiring entrepreneurs who have the knowledge of the financial market and must be able to invest a minimum amount of Rs five lakh including the refundable deposit.”

Abacus learning: Abacus education is becoming quite popular with parents getting keener on giving the best to their kids. Abacus is one of the first calculating devices used for doing mathematical calculations. It does not require the use of pen and paper. It allows children to learn accurate and fast calculations in an easy manner. Maxmind Abacus & Vedic Academy, Genius Abacus and Vedic Maths, SIP Academy, BrainOBrain etc are some of the franchise players in this sector. Moreover, abacus coaching is a low cost franchise model. Dinesh Victor, MD, SIP Academy India Pvt. Ltd informs: “The biggest advantage to start abacus coaching centre is low start up costs. A centre can be started for as low as 1.5 lakh. The returns in a city are as high as Rs 50 thousand per month if the centre crosses 150 students.”

Related: Franchise Opportunities under 50K

So, all the business aspirants here’s your chance to initiate a business venture. Explore the above given low cost franchise opportunities and select the most suitable business venture for you that is easy on your pocket and can bring in best returns.

Related: Clean sweep for biz profits

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