With a wide range of rewarding business prospects in the country, the business fraternity has experienced a boom over the past few years. Entrepreneurs and other investors are voluntarily stepping-forward to spend their time, efforts, skills, expertise and most importantly huge sum of money to establish their own business.
Entrepreneurship involves several kinds of risks — strategic, financial and other operational risks associated with it. An entrepreneur undertakes the risks ranging right from the inception of the business idea till the time the business is completely established. Moreover, with the advent of several stiff competitors in almost every sector, it is a wise man’s decision to opt for such a route that shall not only be rewarding but less risky as well.
The concept of franchising has created a stir , offering great business opportunities to young entrepreneurs to climb the ladder of success via franchise en-route. In the current scenario, the growth of franchising is inevitable because it clearly offers aspiring new business owners the best possible chance of succeeding.
Pleasing for Beginners: Franchising is such a luring venture that it appeals to people having no previous experience of running a business and transform into successful entrepreneurs. By presenting a proven business model, coupled with hands-on training, the art of franchising is capable of completely transmuting novices into accomplished entrepreneurs.
Proven Blueprint — After venturing into franchising, an entrepreneur is legally entitled to adopt the franchisor’s tried and tested, proven, ready-made business model and code of conduct. Thus, an entrepreneur will reap the benefits of a proven track record of the franchisor.
Reduced Risk — One of the major underlying factors that fascinates an entrepreneur to opt for franchising is the reduced risk factor involved. The risk of failure is comparatively lower than starting an absolutely brand new business.
Easier Finance — By opting for a franchise, an entrepreneur receives financial assistance from the franchisor, as he/she makes arrangements with the banks and other financial institutions to lend money.
low on Cost, High on Returns — The primary benefit that a franchisee reaps is the low cost of investment.
Mentor & Peer Support – Franchising benefits the franchisee with ongoing training and support from the franchisor. Moreover, with the support and guidance from the mentor. other franchisees, an entrepreneur becomes competent to conduct its set of operations, in a stress-free way.
In a nut-shell, franchising does makes sense for an entrepreneur as it is the best way to perk up the business and get the desired results.
(The writer is Amol Arora, VC & MD, Shemrock & Shemford Group of Schools)