If you want to get into a business, starting a franchise is the easy solution. After all, a franchise is already an established brand — at least, that’s what this is supposed to mean — and it has a solid business model that you can follow. Those who are starting in their entrepreneurial journey will do well from a franchise business.
Still, there are literally hundreds of franchises that you can choose from. What is the right one for you? This guide for a Filipino entrepreneur should give you suggestions on how best to pick the right franchise business.
Do Not Invest in Fads
Filipinos are a tricky market. Unlike Westerners, there are not many Filipinos who earn above what they need to survive in a day. The purchasing power has increased considerably in the past years, but it remains to be poor compared to the Philippines’ Asian neighbors and the West. As such, many of the products you see on the market today could be fads.
When you hear some friends who have managed to recover their investment in just a few short months, it may be tempting to join the fray. But by the time you operate, the trend may have already passed and you will have a hard time recovering your investment. In the end, you’ll also be stuck with a contract and a handful of employees.
Pick a Franchise with Products that Cannot Be Copied
What you need from a franchise is a product or a concept that cannot be easily copied or duplicated. You want to be the only one in the market that offers the product or service. If the market is too saturated with the same product, no matter how trendy it is, you will lose customers to other businesses.
Know the Financial Requirements
It is not enough that you can afford the franchising fee. Most of the big expenses associated with starting your own business are the working capital, construction cost, and rental fees of the location you have chosen. The working capital refers to the money you need to pay your employees and buy the products from the suppliers while the business hasn’t picked up yet.
Check the Management Style of the Franchisor
Unfortunately, many franchises are good communicators only up to the time the franchisee opens their store. Once the business starts operating, the franchisor may be unresponsive and irresponsible in the dealings with you. You can reach out to other franchisees so that you can have an idea of the business’ management style. You can also read up on the Internet about the reputation of the franchise.
Ask Yourself the Necessary Questions
Do not dive into any business without first knowing if you are capable of running one. Self-check is an important step to take before applying for any franchise. Although a franchise is easy to run because there’s already a business model to follow, that doesn’t mean that it will not require time and effort from the franchisee. Make sure that you are committed to seeing this through.
If you cannot find a franchise that works for you and whose products and services you trust, it may be better if you can come up with your own concept. Got some ideas? All you need is to talk to a business consultant, who can guide you in turning your ideas into a reality.