India today, is listed as one of the fastest developing countries in the world and the cause of this growth can be attributed to the rising economy of the country, urbanisation, increased consumerism and industrialisation. The latest factor stimulating the economic power of the country is Entrepreneurship. The rise in the trend of selling franchises is the new career option activating the entrepreneurial enthusiasm of young Indians. The Franchising industry has led to new occupations gaining popularity comprising marketing franchisees or broker associates. Their job is to sell the products or services offered by the company to the target customers. Considering these factors, a career in franchise has huge potential.
Franchising is very similar to setting up a new business and has a lot of advantages attached to it. It gives exposure to good products in different cities and also gives exposure to different brands. It encourages entrepreneurship in the tier 2 and tier 3 cities. It is a trend which is growing, bearing in mind the clutter of brands and expensive marketing. Besides, it is not very difficult to sell the products or services as it has the advantage of an already established brand name. However, there are certain essential aspects to be considered for taking up a franchise like the risk taking ability, execution and planning, ability to sustain the business, funds, ability to show transparency in operations to maintain long term relationship with the franchisor, acceptance & adaptability for IT system and being open to ideas of growing on the regional level i.e Multiple stores.
Although India has a huge potential for aspiring entrepreneurs, the lack of resources, orthodox notions and the risk factor are creating hurdles in the way of budding entrepreneurs. The Government of India is taking initiatives to counter these problems and one of them is to promote “Entrepreneurial Development” in the country. The government is supporting budding entrepreneurs through cheaper loans, trainings and subsided start-up costs etc. However, not everyone can enjoy the benefits of these facilities. It can be availed only by those aspirants with strong financial background. Only a certain strata of the society can afford to bear the financial risk for a start-up along with the investment of certain amount of money in the initial phases.
Considering the draw backs of the initiative taken by the government, there are few companies that has come up with a very lucrative and remarkable concept of marketing franchisees and broker associates. These two concepts involve lesser risks and more opportunities of minting money. It is a business opportunity with no salaries, minimum investment and maximum commissions. It is basically a direct selling concept which has been enhanced to suit the entrepreneurial streak of the youth today. Through this opportunity, the prospective entrepreneurs could take up the sales franchise of the products or services of a particular brand, leveraging the corporate support services of the brand. This way they could not only find more ways to sell but could also make a handsome amount of money as compared to a salaried counterpart.
Apart from the high earning potential, what makes this career opportunity more attractive is the fact that as a broker associate or marketing franchisee, one commands the status of a company representative and not just a neighbourhood sales agent. These opportunities are ideal for people who would like to make a low-risk transition from a job to a business complemented with a solid learning curve. This is an ideal platform for those aspirants who would like to take-up a guided route towards entrepreneurship and self-dependence. They have minimum investment potential and are ideal if you want to succeed by becoming the representative of a global brand.
Besides there are a lot things to be considered about the Indian market before taking a plunge into the world of entrepreneurs. For example, if a person is taking up a franchise, he should give his 100% and not take it up as a side business. Usually, people who take it up as a whole sole business activity end up being more successful as compared to people who take this up as a side business. People who take this up as a side business lose more money. Being a developing country, India has a lot of potential in ‘franchising’, however at present the proportion of people in service sectors is higher than people in business. Education requirements depend on the type of business - certain knowledge or training programs could be of great help in this case.
There are various sectors in which one can open up their franchise in India. In the small scale industry, it is the food and apparel sectors, in the big scale industry scenario - it is the school, hotel and hospitality sectors. The other kind of franchising includes distribution of outside products.
When it comes to franchising of schools and educational institutions, a lot of planning and strategy goes behind it. One has to carefully select the Franchisee in terms of their educational background check and the school qualification. Local understanding of the market is also equally important. It is also required to ensure 100 percent commitment of the person who is taking the franchise and full support in terms of IT, infrastructure, necessary facilities, and equipment to match the set standards of excellence in education that the educational franchisors maintain in all their branches. Therefore, for smooth running of the business, strong financial background is very important to support the initial phase. The focus of the organisation should not only be to train best minds but also help average students to qualify in exams with flying colours. For this, it is mandatory to ensure quality teaching in all subjects in every centre.
India is catching up with franchising fever now. The systems and processes required to ideate, promote and implement a successful franchising business is still in its nascent stages, but it is growing at a faster rate. With hoards of products and services in the offering, today's consumers want a tried, tested and trusted brand which is where franchising comes in to action. With budding, aware, well-read entrepreneurs in all parts of the country, the demand for setting up franchising of an established franchise is increasing.
