Business services industry is among the fastest growing. Organised players are adding to the quality and reaching professional peak. It offers numerous low-cost opportunities with fancy returns.
Business services industry is among the fastest growing. Organised players are adding to the quality and reaching professional peak. It offers numerous low-cost opportunities with fancy returns.
THE business services industry offers endless opportunities for potential franchisees. If you have a growing appetite for profits, then you can largely benefit from this industry. Few upcoming sectors in this industry are cartridge refilling, laptop repair, signage, printing, real estate brokers, etc.
Business potential
As the business services industry is dominated by unorganised players, there is plenty to perform and succeed. To fill the gap, organised players are taking the plunge into the segment through the franchise route. The printer cartridge market is around Rs 3,000 crore in India with a growth rate of around 18-20 per cent. It offers a good break to a franchisee, who wants to operate a low-cost business. Regarding the opportunity offered by Refeel and ClubLaptop, Samit Lakhotia, Co-Founder and Director, Strategy and Business Development, says, “We offer franchise for both of our brands individually and have recently started operations of both Refeel and ClubLaptop stores from the same location.”
The realty brokerage and the real estate industry is estimated to grow at a rate of more than 25 per cent CAGR. Sam Chopra, Director, RE/MAX, says, “In the coming few years, consumers could see manifold housing options emerging in the industry. Affordable housing projects are also going to drive volumes for the business, which would mean massive increase in the number of second time and third time end-users and finally, increase in the number of transactions.”
When asked about the benefits of buying a low-cost franchise, he said, “It all boils down to the RoI potential of the business. The advantage that a RE/MAX franchise has over any other product/service franchise is that a RE/MAX franchise deals in real estate services, which is a universal product. So, we are basically enhancing the service experience and bringing an element of trust and credibility in the real estate transactions.”
Flip side
There are always two sides of the same coin. Before giving a franchise, the franchisor must keep in mind the other side of the coin too. As per Chopra, “Real estate brokerage is a minimal operational expense business. The key to success is based upon the functions of recruiting, retaining, charging a desk fee, collection of fees and gaining market share. As long as franchisees are able to take these responsibilities efficiently, this business has tremendous earning potential.” Expanding through franchise is easier but one also needs to be double careful about choosing the right people because ultimately, it is a business, where nothing else but your people become the face of your brand.”
Franchisability
Franchising in this industry is all the more secured and chances to grow are more. As a franchisee, one has to invest lesser amount and is assured high returns than any other retail services franchise.
On choosing franchising as a mode of expansion for both their business brands, Lakhotia avers, “To capture large market, have a better control on the business and to replicate the success of Re feel stores via franchise led to the adoption of franchise model for ClubLaptop too. We feel that the franchise model helps meet local-level challenges effectively. Our franchise model of high profit potential ensures that both the franchisees and the company generously profit from the business.”
Expansion
With 22 regional offices and 100 franchises in first year of their operations, RE/MAX aims to open about 1,000 franchised offices and 10,000 broker associates in the next five years. They aim to accomplish this by expanding their presence in all 32 regions and are looking to top not just tier 1 but also tier 2 and tier 3 cities.
Exit option
When asked about supporting the franchisees to sell their business, Lakhotia says, “We have a clause incorporated in the terms of agreement. We have just now started and it is too early for us to say anything. But yes, we would certainly like to help our franchisees find a suitable buyer.”
It shows that business services industry holds immense potential to accelerate the growth of an economy. This industry offers innumerable business opportunities for the franchisees. Being a service-based industry, it has the capacity to create a lot of employment opportunities in the economy as well as increase its income.
(Inputs by Punita Sabharwal)
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