Franchising has turned out to be the best absorbent for corporate executives who have left corporate houses to start their own enterprise or who were laid off during economic recession. To study its impact on the franchise industry read below
Franchising has recently emerged as the most lucrative business proposal. It has not only engulfed the ex- corporate executives in its fold, but also provides opportunities to a large number of executives being laid off by the MNCs. This diversion of white collar executives to entrepreneurship has really given a boost to the franchise industry.
Supporting the corporate executive’s diversion to franchising MRK Menon, Founder and Chief Consultant, Aero-Sports says, “Mostly all our franchisees were previously working in the corporate sector. They left their jobs for entrepreneurship as it provides a good opportunity to make money, get free from boss hassles, there is less of commuting and it gives you the freedom and feeling of ownership.”
Through this article we are highlighting the factors to be kept in mind while turning to franchising and how it is affecting the franchise industry as a whole.
Before you own a franchise
If you are an ex-corporate executive planning to own a business, then make up your mind for the new role as a franchisee. Appreciating franchising to independent businesses, Menon shares, “In franchising the whole business is offered to them in one capsule. If ex-executives have money then franchising gives them the ideas, zeal to start a business and a proven concept as well.”
Keep the following considerations in mind before taking a decision:
Responsibility to own business: Being a part of a business and running a business are entirely two different things altogether. Owning a business means you are accountable for the success and failure of your business whereas, an employee only manages the job responsibility.
Handling physical and mental stress: In the corporate sector, decisions are taken by the top most level but as a franchisee you need to make decisions on your own. Moreover, taking instant decision can put lot of stress on you. One wrong decision may lead to dire consequences.
Maintaining healthy relations with franchisor: Running a franchise does not mean that you can make any change without your franchisor’s consent. It is essential to communicate with your franchisor and understand clearly what are your limitations as a franchisee. Disregarding the franchisor could ruin the relationship between you and your franchisor.
Work 24x7: Franchising involves lot of hard work. You need to be involved in the franchise at odd hours. Many franchise businesses demand more work during evenings and weekends. As a corporate professional, you are used to having weekends free, then be careful about the hectic schedules in franchising.
Patience pays: If you as an entrepreneur and aspiring to make high profits in a short interval, then you must reconsider your decision. No franchise business whether small or big can reap such high profits at the initial stage. Turning your franchise into a successful business needs long hours of dedication and hard work.
Impact on franchise industry
Franchise industry has seen tremendous success attributing to the large number of corporate executives increasingly becoming a part of it.
For franchisors: Franchisors encourage aspirants with an executive background. Firstly, the aspirants are individuals with extensive management experience. They are not novices who have to be taught everything from scratch. Secondly, due to the tremendous boost in such professionals, it is easy to get such educated entrepreneurs now. Moreover, these prospective franchisees come along with significant capital investment as the result of their high pay packages. These all advantages make it easier for such aspirants to get involved with successful franchise businesses.
For franchisees: Franchising can be quite exciting and rewarding for the executives tired of bureaucracy, committees, over-work and hierarchies involved in a corporation. Owning a franchise outlet gives you the freedom to run a business, control and manage it without any interference from high authority.
However, before making a transition from a corporate employee to a franchisee, your first step is to decide about the kind of franchise you want to own. This would depend upon your field of expertise in the corporate sector. Executives who have worked in the marketing sector are good in dealing with clients and customers. Or a sales executive in sales related exposures.
In a nutshell, it can be said that the franchise industry provides a platform for entrepreneurs irrespective of different fields and different professions. Selecting the right franchise is an essential criterion to step in for a better and more rewarding life.