- Sep 2020
Four pillars of success
In India, every three out of four adults are considering a path towards skewed towards entrepreneurship. The Indian millennial is not questioning his ability to do it, it’s more a matter of “What all I need to do I get it right”? Only 0.01 per cent of Indian workforce is thinking of building a technology enterprise through a startup, rest prefer to have a business of their own, which they could operate, manage and grow to the next level. Franchising provides a comprehensive, entrepreneurial blueprint for success, particularly for people who see large business ownership from an operational aspect, instead of building it up from the ground. Franchising is essentially about getting a franchisor and franchisee to find a middle ground to create a large brand and profitable business operations around it. Here are the four pillars of franchise success that can make the organization and franchise system a success:
1 - Brand of Choice (BOC):For a franchisor to make a successful business, one has to aim to be a market leader. You can’t make leadership in any market or product unless you become a brand of the choice. A franchisor’s biggest mission should be to make the brand holistic and to invest in operational, marketing and strategic areas so that the franchise brand becomes strong and deserving of franchisee investment. Franchisees are lltypically drawn into lower-risk systems that are well developed, documented, tried and proven. When people think of a brand name, they should be able to conjure images of product quality, service they will receive from a particular organization. Owning a franchise is like buying a ‘readymade’ business that already has a ‘built-in’ customerbase.
2 - Partner Makes Money (PMM):No brand in a logical sense would be able to create an enterprise without having partners making money. If franchise partners don’t make money, franchisors don’t make money. At the end of the day, both franchisors and franchisees bond together and are looking to profit financially from their monetary investment and also their time and energy. Collectively the franchise system must make money for everyone and not just a single individual. In the long-run, the survival of a franchise chain will depend solely on its financial success.
3 - Top Market Share (TMS):One of the principle goals of franchisors in the 21st century is to ensure the top slot for their chains by constantly hustling for a bigger market share in their sector for the brand. Justice with the brand can be done by achieving the top market share. Franchisor together with their partner needs to build more substance in the business and the brand to capture highest market in the industry and bring longevity and stickiness to the franchise brand.
4 - Limited-liability company Loves You (LLU):The most attractive thing for someone who is investing in a franchise organisation is that he has an entire team that is dedicated to supporting and helping him to achieve income, lifestyle, wealth and equity goals that he wants by running a business. The LLC, or the franchise organization has to time and again reiterate this to the franchise partner. Many challenges in the system can be avoided if both have more open and frequent communication. There will be good times and tough times, but the franchisor should stand by the partners and should address the problems collectively.
Most brands are in a hurry to spread their reach by taking franchisees on board. The aim here is to maximise profits…