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Advisory 2011-01-12

Plan Your Finances Right This New Year

The beginning of the year is generally considered to be the time when entrepreneurs revive or restructure their business strategies for the whole year. Franchisors focus on their financial issues to maximise their profit margin during this time. Read on t

By Sub Editor
Plan Your Finances Right This New Year

Here comes the New Year and franchisors irrespective of the industry, plan new strategies for attaining growth and success of their franchise ventures. However successful a business is, but there is always a room for improvement. During the year there are lot of instances when franchisors want to introduce some major changes in their businesses. However, they do not adopt any change in the mid of the year for fear of failure, and New Year is the best time to revive old strategies and experiment new ideas whether related to finance, execution, expansion, marketing or promotion. Out of all it is always the financial issues that make up the most essential part of any business, whether franchised or self-owned. The article here discusses the financial strategy or resolutions that franchisors plan this New Year.

Financial Strategy this Year

One of the best ways of increasing franchise profitability is by innovating and making new plans for the betterment of the business. Financial strategy of any franchise business basically revolves around the new ventures the franchisor is planning, expansion plans whether nationally or internationally, support system, marketing or advertising campaigns and so on. In words of Maneesh Anand, Director, Slip Guard (Mithila Industries), “Financial year is different but the calendar year also requires certain resolutions to be made from franchisors. It is important to make resolutions in the New Year.” Similarly Pankaj Agrawal, Director, Academy of Applied Languages , Venture of GenNxt India said, “Whether we take the New Year as the calendar new year or the financial New Year, we constantly need to make and review our financial plans/ resolutions.” Below given are few of the promises that have to be made by the franchisor for achieving higher goals and profits.

Expansion strategy: Franchisors need to strategise an expansion plan in the beginning of the year. It is of utmost importance to think and then execute expansion plan before going for it. As said by Anand, “Our company is related to new kind of product. During the last year we were not sure of its success. But gauging its popularity we have made plans to expand rapidly from January.  We will be investing up to Rs One crore on expansions of the brand and also on developing and training our franchisees.” Moreover at the time of New Year, franchisors should rethink about their postponed expansion plans. As said by Agrawal, “We all as humans sometimes procrastinate and forget certain plans. Personally, I follow a simple system of going through every page of last year's diary and picking elements that were ignored/ not completed and bring them into my new Year Planner.”

Marketing and promotional strategy: Each year the franchisors have to come up with innovative marketing and promotional strategies.  These should be carefully made in the beginning of the year so that the various strategies can be employed for the benefit of the business.

Launching new ventures: It is at the time of New Year that franchisors should plan to launch new ventures to add to the existing business. Moreover, they should keep their franchisees and their employees well informed of their plans so that they can also contribute their ideas etc.

Setting personal monetary goals apart: Different entrepreneurs have different aspirations from their venture. An entrepreneur who has started his business only after retirement aims for rapid success but his idea of a successful franchise may vary from an entrepreneur who is just in his 30’s. The New Year is considered an appropriate time for setting your personal as well as professional priorities. Entrepreneurs should always keep in mind the personal monetary requirements and set aside an amount for it. Taking help from franchise experts is a good idea for franchisors and franchisees with too many personal responsibilities.

Planning the budget: Planning your budget is critical for the company's future. Entrepreneurs need to make a budget that they would be investing in their business in the New Year. Starting of the year is the best time to make the financial arrangements for the whole year. Regarding this Sameer Kachru, CEO, Go! Chaatzz shares, “In the new year franchisors and even franchisees need to take out top three cost heads and also come out ways to reduce the cost. A good budget requires cost-cutting as well.”

Fixing deals with vendors: The costs of products and services keep on increasing always. Keeping in mind the improving economy and inflation, the franchisors and franchisees should try to make long term agreements with their vendors at a fixed cost. During inflation, the vendors are the first ones to increase the price of their products as well as raw materials. Therefore it is always a good idea for franchisors and franchisees to make a long-term agreement during the staring of the year. In words of Kachru, “Along with fixing costs with vendors, rental deals should also be given priority. Outlet rentals occupy a major portion of finances and one should always set rental cost in the beginning of the year.”

Recruitment strategy: For making employees loyal to the company, it is essential to make them a part of the franchise by sharing aspirations and goals with them. Moreover the New Year is the time for changes in the pattern of working etc, therefore keeping your employees informed is always advisable. The franchisor or franchisee should be clear and allot certain roles and responsibilities to every employee. All this should be done in the beginning of the New Year.

Word of Caution

To conclude, it can be said that for a successful and a year full of growth, franchisors should strategise their financial issues at the very beginning of the year. These financial resolutions with help the franchisors achieve long term goal. However, it is also true that all resolutions are a waste until they are executed properly and diligently. Agrawal said, “The most important thing about any goal is to make it work. Some dream of taking Rs 15 crore company to 200 crore in two years. It is not realistic. Making goals and resolutions which can be achieved is essential.” So all you franchisors, carefully execute your plan of action for the New Year to achieve financial gains.

Comment
mitesh bhatt : 15, Sep 2010 at 10:21 PM
I am Intrested. Pls. give more details for working profile & investment.
Ashish Mathpal : 15, Sep 2010 at 10:56 PM
This seams to be any upcoming good opportunity and I am interested to know in detail about this.
trilochen singh : 16, Sep 2010 at 12:33 AM
we would like to know more,see the products and see some examples of your products deployment in various fields.
ATUL SHAH : 16, Sep 2010 at 01:09 AM
interesting business. send me details . can it be done without technical background ?
b gurudath rao : 16, Sep 2010 at 11:49 AM
i am interested, but are robotic products, what is the use please explain thank you
Mahesh Chandak : 16, Sep 2010 at 12:41 PM
Its a intresting oppertunity. I would like to know the product details and whether any technical knowledge required for the franchisee?
Abhijit Shahapurkar : 17, Sep 2010 at 01:35 AM
This is really emerging business in India . This article shares only general information. At initial stage I am interested more in the way actually how this business going to work? I am interested in more details of this Business .
SRINIVAS DASARI : 17, Sep 2010 at 02:25 AM
Fantastic!!! Would like to know more in terms of innovative products that you make and details of how it will keep us survive in this upcoming market.
NITIN VYAS : 17, Sep 2010 at 07:53 AM
I AM AN ELECTRICAL ENGINEER WITH MORE THAN 30 YEARS EXPERIENCE.MY ELDER SON IS M.TECH DEGREE FROM I.I.T. DELHI. AND YOUNGER SON IS SOFTWARE ENGINEER.WE HAVE GOOD CONTACTS IN INDUSTRIES AS WELL AS IN ACADEMICS LEVEL LIKE SCHOOL, COLLEGES AND TUTION CLASSES ETC.WE HAVE LIMITED FUND TO INVEST.SHOW US THE WAY SO MUTUALLY WE GROW TOGATHER.
indrajeet signgh : 18, Sep 2010 at 01:03 PM
I am eager to know about robotics and want to take franchisee if available.Please provide me needful information.
Abhijit Shahapurkar : 19, Sep 2010 at 08:07 AM
i am interested. Pls send me the details of this business franchise.
Punit Kumar Gupta : 19, Sep 2010 at 08:21 AM
I am interested in this franchise opening in Rajasthan. Contact with me for rajasthan
sreekanth babu s : 21, Sep 2010 at 12:56 AM
it seems very interesting business, would like to know more details.
JEETENDRA SHARMA : 21, Sep 2010 at 04:00 AM
i would love to have more information regarding your products warranty period?
RAMPAL : 22, Sep 2010 at 06:13 AM
BEING A Engg.(E&C) I AM INTERESTING IN THIS FRENCHISE IN (j&K) WOULD LIKE TO KNOW MORE
Anil Patel : 22, Sep 2010 at 06:58 AM
I would like to have more information regarding the products and the business opportunity & do you need to have technical background?
Saibal Dutt : 23, Sep 2010 at 05:49 AM
I am a Business man operating an Export House and other business ventures. I am interested to know more about your Robotics business and also seek to be a franchisee in Kolkata. Please send me full details with terms.
sanjay.c : 23, Sep 2010 at 07:30 AM
I am interested in this bizness idea, plz send me details.
mustafa hussain : 26, Sep 2010 at 05:43 AM
please send me the franceise availablity and addresses of the companies interested.
Hiren R.Chothani : 25, Oct 2010 at 11:56 PM
please send more detail about franchise and investmen
abhay agrawal : 23, Nov 2010 at 12:46 AM
hi i m intrested in the business. pls contact me. kind regar abhay agrawal
Raviprabha P Dayanandan : 10, Dec 2010 at 12:00 AM
Hi i am interested in the business pls send me the details by email
Laxmi Narayan Pati : 10, Dec 2010 at 09:11 AM
I am an MBA with Physics background.I need further information for setup the business. Me:regards Laxmi Narayan Pati
ishan Agrawal : 11, Dec 2010 at 06:06 AM
hi i m interested in the business. pls contact me. kind regards ishan agrawal
SACHIN TYAGI : 30, Dec 2010 at 07:57 AM
i am already involve in automation business.so.I am Interested this business. Pls. give more details for working profile & investment.
Nilima Mago : 10, Jan 2011 at 04:05 AM
My name is Nilima Mago and I have done my engg in Computer and Masers in MIS (with major in Management). Can you please send me detail information about the business. Thanks in advance. Regards Nilima
Mike : 12, Jan 2011 at 05:29 PM
Please send more info Thankyou
A M Morawala : 23, Jan 2011 at 07:43 AM
Hi, I am an Electronics engineer, 53 years, with 30+ years experience in industry. Robotics & micro-controller based systems are my passion and my hobby. I have hands on experience in AVR, 8051 etc. I want to take up robotics and associated systems as self employment. Possible schemes include teaching basics (electronics, mechanics,etc) & building & selling. Can i get in touch with someone who can guide me on this path? I have limited monetary resources, but 10% interest. Thanks.
kiran : 25, Jan 2011 at 05:53 AM
i want take robotics franchise my own school is there please feed back ASAP regards kiran
Bridge education services pvt ltd : 07, Mar 2011 at 11:21 AM
please send more detail about franchise and investment,we are very much interested to start this course in Chennai.
R.R.varma : 07, May 2011 at 12:20 AM
I am intrested in involving & associating in manufacture/ sale of the said equipments. Pls let us discuss. Regards, Varma
A.P.NAVEENKUMAR : 08, Nov 2011 at 01:06 PM
wish to take franchisee
Yoganand : 10, Jul 2012 at 03:46 PM
My name is Yoganand K L N and I have done my B.Tech in MECHATRONICS batch (2008-2012). Can you please send me detail information about the business. I am interested in starting up a business in my field . Thanks in advance. With regards Yoganand.
ravi : 06, Aug 2012 at 09:06 PM
i want to know more about this
Wasim Haskiya : 08, Sep 2012 at 08:40 PM
Hi,\r\n\r\nI am a mechanical Engineer in profession have PhD and Robotic Assembly, and would like to set up a business in Robotics. Could you help in this.\r\n\r\nRegards,\r\nWasim
kulbir : 01, Feb 2014 at 06:37 PM
Sir .., i think according to your details above its a good business opportunity in india
praveen : 09, Apr 2014 at 03:58 PM
Its a intresting oppertunity. I would like to know the product details and whether any technical knowledge required for the franchisee?
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