- Dec 2020
Building a new India
Change is the only constant in a dynamic economy, which India is currently. Buying a franchise could be the best decision you make in the Indian environment today. It has been a gateway to success for millions of people worldwide who have fulfilled their dreams of business ownership. In fact, conversion to franchising will lead this change and better lives for small business owners in the coming years.
The Real NeedIndia is not about modern retail or modern services; it is about modernizing our existing retail and services. We don’t need more stores; we need enhancement of current infrastructure and distribution. Franchise companies in India that will design a business model where they can convert the mom-and-pop stores to do organised business will fare much better. It was not feasible in earlier years, as the demand from the other side was not very compelling. But, it’s a scenario that seems to be playing out more and more over the last year.
I feel that the demand is now much higher. So this is the right time to expand through the franchise model. The backbone of the Indian economy has always been the hard-working small businessmen and women who produce great products and services while providing jobs and offering employees a way to support their families. Today, GST implementation has challenged every Indian kirana/pharmacy/salon and other small business owner as organised accounting and an enforced tax structure was till now not a serious issue for them.
Why It WorksWanting to convert into an organised setup under the umbrella of a brand would be advantageous for business owners. Most independent business owners don’t know what they should do to improve their growth or maintain a business during a slow economy. They also do not have good marketing and sales systems, aggressive internet and social media presence or the economies of large buying power that would help them to compete better. What’s great for franchising is that independent mom-and-pop store owners need brand partnerships to stay in business.
They are very receptive to finding additional and new methods to improve revenues which they have lost over the last couple of years. If a franchise brand has better systems, training and coaching, the local store owner can improve his or her business results by replacing the existing systems with the stronger systems the franchise brand can share.
In the coming 4-5 years we would face the challenge of manpower as any large economy would have. Human talent would become highly priced, as it will be highly sought after. We have to become people-efficient businesses. Franchising globally has helped achieve better return on time and therefore investment for business owners. This then is surely the path to take.
Most brands are in a hurry to spread their reach by taking franchisees on board. The aim here is to maximise profits…