Are you new in franchise arena and have several questions regarding initial risks and challenges of this unique business model? Well, here we bring the answers to all our readers' franchising queries via this regular column of expert's advice.
Do you feel the beauty industry will be able to thrive in tier- II and III towns? Or will it work best in metros and tier- I cities only?
Ajay Pratap Singh, Delhi
The future of the industry does not lie in the metros and tier- I cities alone, and tier- II and III towns have a large role to play here. This is due to the twin factor contribution of increased disposable time and disposable income available. Another factor is that people in tier- II and III towns have access to net and cable television, and technology has made smart phones extremely attractive to the small town budgets. All these elements put together make the beauty business an attractive proposition in small towns.
What is the future of franchise salon chains in tier-III cities as market there is decked up with unorganised players?
Camilus Pio, Chennai
I agree that the market is flooded with small stand alone players, but none of them can match the advantages a brand can bring to the floor of the salon. Marketing on a regional and national level, International products at competitive rates, focused and tested operational methods, professional SOPs and regular training, regular supply of trained manpower are just a few of the reasons salons choose to go with a brand rather than go it alone. The same will apply to salons all over, and not just to tier- I and metros. However, here as in anywhere, the brand has to be careful in its choice of franchise partner, as the franchisee and the franchisor have to think and move in the same direction.
What kind of homework a woman entrepreneur must do before putting together her business plan? Are there any tips that you would like to give to aspiring women franchisees and entrepreneurs?
Vassundhara Rajput, Gurgaon
Any one aspiring to be an entrepreneur needs to follow a few basic steps outlined here:
Do have any tie up with leading banks to support your women franchisees and entrepreneurs? Please elaborate how you support franchisees via such tie ups?
Rohit Shah, Nagpur
With any business, we know that aspirations are one thing and actual implementation, planning and execution turn out to be quite another. Monetary constraints or fund raising can bog down any entrepreneur who wishes to move to the next level. Understanding this is critical and to support women who wish to be entrepreneurs, we have tie ups in place with Indian Overseas Bank and Bharat Mahila Bank. This ensures they get the necessary funding at the right time to make their dreams reality. As a result of our tie ups, clients with extremely good credit rating can get up to 80% funding from the banks mentioned, with submission of necessary documents. Once this process is complete, the in-house Business Development team from Naturals will coordinate with the franchise partner for a smooth acquisition of funds.
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