Given limited resources, new entrepreneurs always think of how to recover whatever capital they have invested in the shortest time possible. This brings the franchising concept handy.
Sherill Quintana, one of the country’s most successful entrepreneurs and president of the Philippine Franchising Association, will always recommend franchising as the way to go for anyone wanting to go into business.
Franchising was effective pre-pandemic, and will even be more relevant at this time of pandemic and post crisis.
“Franchising has proven to be an empowering tool for business generation and job creation in times of crises. It can only grow from strength to strength, provided that the franchisors are creative enough to adapt quickly,” said Quintana.
All a franchisee should do is get himself on board the system and run it on day one. This turnkey business model saves one from the pains of trial and error and ensures immediate payback.
To existing enterprises, franchising harnesses the power of growing to many by effectively optimizing other people’s money and resources. The fast expansion and growth of most enterprises can be largely attributed to franchising.
Franchising sits simply on two most important ingredients: the successful business and its duplicability. It is a template ready for implementation at the right location and the right attitude.
All a franchisor has to do is ensure that franchisees follow the system while he markets and promotes his brand, and opens new ones. This is to protect the brand and ensure growth.
But just like any business, Quintana advises anyone going into franchising to heed prudence. One must ensure that organizational capacity and systems are in place to reproduce clones of the successful brand being eyed.
Quintana advises participation in a reputable association. “It definitely is helpful to be in an association like PFA – with franchise start-ups able to learn from well-established brands and vice versa,” said Quintana.
Lastly, franchisors and franchisees should actualize the business model as you are in the business for yourself not just by yourself. Working together has never been more important both for franchisors and franchisees.
It is imperative that one enters franchising with a solid commitment as an entrepreneur to make it work. The good thing these days, franchisors have very enticing offers as they go through adapting what works best for franchisees as well during this difficult time.
There are myriads of franchising concepts to choose from as there are a whole spectrum of affordable franchises. A franchise can cost from a few thousands of pesos for carts and kiosks to millions of pesos for the big brands. But Quintana said that the most affordable franchise is the one which works for one’s appetite for risk and budget.
Studies show that franchising compared to a traditional start-up has a higher success rate.
This is true in most cases. Thanks to the power of synergy by the franchisor and franchisee in a proven template for success.
In this time of pandemic, both just have to work as a team. Entrepreneurs though are survivors. Those who are able to adapt well will remain and get stronger, and the phony ones will be spotted from a mile away.