Pick My Story is a budding startup and is constantly growing to deliver important information and gyaan for entrepreneurs. Over the last few days, we’ve been correlating various facets with entrepreneurialism for everyone to understand the field. From correlating Dinchak Pooja to content marketing to Baahubali giving life lessons to entrepreneurs, we’re writing about everything to cater to needs of everyone.
In this quest to quench the knowledge thirst for everyone, we are also interviewing numerous entrepreneurs who have paved their own way to the top.
Amidst this process of interviewing, and knowledge sharing, there have been a lot of observations we came across. While all business entrepreneurs are driven to making it big, not everyone wants to go through the headache of managing various operations. The whole idea of managing one organisation spread across various cities does not entice business entrepreneurs and this aspect is completely understandable. While spreading the wings of one’s organisation sounds lucrative, one must know that the grass is always greener on the other side. Amidst this scepticism, there can be a lucrative yet easy way out for many business entrepreneurs – Franchising.
The process of franchising one’s business startup idea can be profitable for the entrepreneur and the organisation. With lesser responsibility on the shoulders, business entrepreneurs can pay heed to the little details that define the brand. After all, “devil is in the details”. The franchising model works exceptionally well when a proven concept is rolled out across various places which possess the potential to harness the requirements. With the franchising model expanding exponentially, budding business entrepreneurs can look towards securing their dreams.While the franchises in the earlier years were confined to retail outlets, the same cannot be said at the moment.
Let us look at an example to validate this claim. Zostel is the first hostel chain for backpackers in the country, and aspiring business entrepreneurs can learn in abundance from its model that ensures security and longevity in every front. The idea started as a hostel with exceptional services catering to the backpacking community, and now has expanded its base nationally and internationally. With hostels across all the niche destinations, the brand follows a franchise model where it allows local bodies to do all the investment, while the brand takes care of the marketing and branding. By providing the partners with equipment and training, Zostel is expanding its brand’s identity across a segment where it hardly has any competitors.
While Zostel was a success, business entrepreneurs must not be lured into this concept before doing sufficient research. Not every idea is meant for franchising since its concept must be duplicated at a national or an international level.
A key takeaway
A franchise model is beneficial to all the parties if the brand has established its notoriety over a sector. Organisations can receive franchise fees which offer business entrepreneurs with returns that are profitable. Business entrepreneurs who are aiming at franchising or expanding their business must also wait for a minimum of three years to get the most tangible results.
In the next post, we speak about the things business entrepreneurs must consider before opting to develop a franchise model. Stay tuned for more updates, and tell us what you feel about Pick My Story in the comments section.
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