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Feb, 11 2013


The dictum, 'the higher the investment, the bigger are the chances of success', is not true anymore. Brands in low cost category across sectors are taking the franchise route for expansion giving a boost to low cost businesses in India.

INVESTMENT plays the most significant role in any business venture. Cost is mainly the deciding factor for taking up any business venture. As per the popular myth 'the higher the investment, the bigger are the chances of success'. However, this is not true anymore. The emergence of a large number of brands in low cost category across sectors and the franchise route opted by these brands for expansion have given a much needed boost to low cost businesses in India.

Investments for low cost franchise opportunities usually fall under Rs 20 lakh depending upon the brand, location and format.

Low cost businesses are most apt for people who have a low budget for investment or in the case of   housewives, ex- army men and retired servicemen, a husband-wife team, aspiring mompreneurs or anyone who wants to work from the comfort of one's home. Considering the growing success and popularity of low cost franchise opportunities The Franchising World bureau thought of dedicating the February issue of the magazine to low cost and home based business opportunities. In the February issue, we have taken an initiative to assist aspiring entrepreneurs who have not been able to materialise their long cherished dream of initiating a business venture till date, due to lack of information about brands and low cost home based business concepts. These aspirants may now take up a franchise of any low cost business and can become business owners.

The Issue Focus section of the magazine has covered three most significant aspects of low cost business concepts.

Kiosk format

The most successful and popular form of low cost franchise opportunity model is the kiosk format. No matter whether it is the high-end malls or shopping plazas, one thing which is common is the presence of a kiosk at almost every shopping plaza or mall. The kiosk format is available across sections, including food and beverage, telecom, fashion accessories, watches, and so on. A kiosk format is preferred as it requires low investment and is higher on returns. 

The kiosk format is best suited for instant buying. The finances required for this format is less as compared to opening and running a standalone store. With increase in rentals in high streets in the country, kiosks in good malls are always a good bargain. Thus, the most attractive thing about a kiosk format is low investment and optimum location which has the potential of generating high yields. As most of the entrepreneurs and franchise experts feel the strategic location of a kiosk helps in attracting potential consumers.

Low cost service franchise concepts

A growing need of people for service brands and increasing consciousness among them to take services from organised brands have led to the emergence of many low cost service concepts that opted for the franchise route for the expansion of their concepts. An article based on low cost service franchise concepts, has been done in the Issue Focus. This article talks about various service-related sectors that offer low cost business opportunities, including food and beverages, travel, florists, financial services and education, etc.

The Food and beverages sector offers the most successful and popular formats for low cost businesses. The kiosk formats of coffee brands, juice bars, fast food kiosks and so on are offering the best deals in franchise business. The low cost models of courier companies allow courier brands to expand rapidly while giving high returns to the franchisees. Blue Dart Express, DTDC Courier, Overnite Express and Blazeflash Couriers, are some of the significant players in the industry offering low investment franchises to prospective franchisees.  Abacus education is another low cost franchise opportunity that has gained popularity over the years. Genius Abacus and Vedic Maths, SIP Academy, Maxmind Abacus & Vedic Academy, BrainOBrain, etc., are some of the franchise players in this sector that offer low cost franchise business opportunities. Recognising the growing popularity and success of organised florists, significant brands like Fern 'N' Petals are offering low cost franchise opportunities to aspirants. The investment for such formats varies from Rs 8-10 lakh depending on the size and location of the outlet.  Aspirants having an interest in arranging trips and travelling programs and are efficient in organising stays and accommodations in hotels but have low investment budgets can explore franchise players like,, Travel port, Travo (I-Nova Group), and Travel E-Point, etc. Franchise investment for such brands ranges from Rs 40,000 and may go up to Rs 10 lakh. Franchise companies like Sharekhan Ltd, Motilal Oswal Securities Ltd (MOSL), SKI Capital Services Ltd, Ventura Securities Ltd, Sykes & Ray Equities (I) Ltd, the Wellindia Group and CFS Financial Services Pvt. Ltd are offering low cost benefits to aspirants. The investment required is Rs 5 lakh for such brands, including a refundable deposit.

Home based franchising in India

There is a growing trend towards work from home opportunities, these days. Individuals seeking liberty in their careers and better work-life stability usually find home-based businesses more appealing. In contrast to spending long working hours in offices away from home, work from home business opportunities do not keep them away from home for long hours. Also it gives ample time to spend some quality time with family and children. Thus starting a home-based venture is a good idea. Explore some interesting and potentially lucrative home-based franchises that let one earn handsomely without leaving the comfort of one's home in the third section of Issue Focus. Low cost home businesses are a perfect choice for any home-based entrepreneur, having flair for teaching and a true entrepreneurial spirit.

Bottom line

It is time for all aspiring entrepreneurs seeking low cost business opportunities to explore a wide range of low cost business opportunities available across industries. Take up a franchise of any low cost business and that suits your interests and accomplishes your long cherished dream of becoming a business owner.

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