In the past few years, franchising has emerged as one successful business model that host several benefits for entrepreneurs and business owners.
Establishing and owning an independent business of your own might sound like an exciting idea. But, it’s one of those daunting and risky affairs, which is not everyone’s cup of tea. Moreover, the current Indian business ecosystem holds numerous independent businesses or startups, catering to the same segment as yours. This ultimately increases competition and thus the pressure, which makes it difficult for new startups to emerge and run successfully.
Franchising: A Proven Business Model
In the past few years, franchising has emerged as one successful business model that host several benefits for entrepreneurs and business owners. The model has been gaining huge acceptability as compared to independent businesses, thus increasing the demand for franchising within the Indian business market.
Sahil Mittal, co-founder, ShiftKarado says, “Franchising is the future of businesses in India. Even entrepreneurs that are just stepping into the industry with their independent businesses are lately shifting towards the franchising model due to its huge benefits. Franchising will soon become a one-stop destination for entrepreneurs that are willing to establish their name in the competitive Indian business market.”
Support and Training
Support and training are a few crucial benefits that franchising offers to its franchisors and franchisees. While independent business owners need to start everything from the scratch, franchise business owners can get a head start as compared to those independent business owners.
Investment in a franchise offers benefits in terms of market research, support, market presence, experience, buying power and other things that eventually make it a lucrative and profitable business model for expanding a business.
The Success/Risk Factor
Success and risk are two common components of any business running in the current time. While success is something which every entrepreneur dreams of, risk is a critical factor that could affect the entire business plan.
The modern-day Indian business market is a hub of different firms catering to similar target audiences. This increases the risk factor that needs to be evaluated and worked around in order to sustain in this competitive industry.
This is where a franchise business is believed to gain more success than any other startup as they are acquired by a proven track record, having effective and established operations in place.
A Successful Business Formula
Independent business owners need to plan and design their own formulae in order to emerge successful while competing with other brands. The designed formula mostly depends upon the circumstances of the business ecosystem and various other factors, which can result in either success or failure as a brand.
Whereas in franchising, a franchisor provides a well-guided map to its franchisees, showing the route to business success. The franchising model has its own established customer base that eventually reduces the risk factor, assuring success for new franchisees.