Sbi Magazine

Many years ago I was thinking of starting a business. A
franchise seemed like a very good alternative. I would be
buying into an existing brand name with a proven track
record of success. However, as I did my own research the
answers that I found were not what I expected.

I attended franchise exhibitions and spoke with a lot of
different people regarding what was necessary to start one.
I found out for the different franchises how much startup
capital was required and also how much cash was needed. I
did not have the money upfront to start so I would have had
to borrow it. I found different places where I could get a
loan and enquired about the necessary steps.

However, in doing my due diligence correctly I decided to
personally speak to some franchise owners to get enough
feedback to try and decide what franchise I would be best
suited for. The responses that I received were very
surprising and not what I had expected at all.

Most of the franchise owners were earning a decent living,
but very few had much time for themselves. They were
working a 14 to 16 hour day. Also some of them had
negotiated long term leases, but were hardly making enough
money in profit because they had to spend most of the
profit paying for rent. One owner told me that the land
owner had calculated the projected turnover inaccurately
and that the turnover he was experiencing was a lot less
than originally projected. So in the future he would only
negotiate a lease that took the actual turnover into
account as a percentage.

Another owner also told me that when he started his
franchise he had bought all the kitchen equipment brand new
and paid an absolute fortune for it. He also mentioned that
if he started his franchise now he would look for good
quality second hand equipment and only pay about a third of
the price he had originally paid.

Other unforeseen expenses that franchise owners in shopping
centers experienced was refuse removal and security
expenses. When deciding on a franchise it is very important
that you do your homework correctly and know exactly what
you are getting into. Unfortunately most business owners do
not do this correctly and end up with a lot unforeseen
expenditure that puts a strain on their business.

For some business enthusiasts who started out good and then along the way something unexpected and undesirable happened, starting again is a sneered moment that only the strong at heart ever take this path to resurrection. Most people’s instincts would to pack and go on to another journey in life, leave the past and say hello to another future endeavor. But there are just a few who happen to be gifted with tenacity that is divine.

Those with the positive attitudes that cannot give in to present circumstances but stay on top of any situation and eventually turn out to be winners. Thomas Alva Edison was once asked about his thousand attempts before finally perfecting the incandescent lamp, instead of agreeing that he indeed failed, he said, ” I did not fail, I just found 2000 ways to light the bulb.” And that’s what an attitude of a winner is all about. In business, that attitude can make all the difference.

For most business tycoons today, failing is a necessary ingredient that makes up today’s largest and biggest conglomerates. Franchising has also gone a long way. Some of today’s successful businesses have gone into the path of franchising. This involves relatively lesser risk as the business model used is that of the business that has been proven. In other words, the key is duplication of that successful business for others to experience more or less the same growth. While the start isn’t a walk in the park, quite a number of businesses have stood the test of time and gone bigger; thanks to this franchising trend.

Looking around, one will find that quite a number of new businesses have sprouted due to the franchising fever; from chocolate cookie kiosk to hardware stores, more and more franchise businesses have been borne. Due to this popularity, the franchising trend is not only for the huge names of burgers or fastfood chains, but also to laundry shops and burger kiosks. They enjoy the shed of the success story of the parent business and having that for an advantage makes their own business reap quite a number of benefits.

There might be limitations along the way, but who cares when the money is pouring in. But just the same, precautions are still part of a healthy business acumen. One needs to fully understand the entire franchising thing before getting soaked into something that might make you feel more sorry in life than ever. So, in this franchising business, skill, determination and the proven track record of the franchisor are all that it takes to enjoy financial freedom that everyone so desires.

Asia is undergoing a terrific boom in franchising.

The rise of the middle class in Asia and the growth of China and India has delivered more opportunities for franchising than ever in history. Consumer demand remains high for franchise offerings across Asia especially in high growth markets. The market is very receptive to franchises especially in conjunction with the boom in retail projects in Asia as well.

Here are just three key reasons to consider buying a franchise in Asia:

Lower Your Risk with a Proven Business System
It’s a lot easier than starting a business from scratch. There are many complex factors involved in any small business and franchise systems provide the know-how and support for the business owner. In a 2001 survey conducted in Singapore, by the Singapore International Franchise Association, nine out of ten businesses which have franchised their operations have become more profitable. Systems alone can provide a solid basis for increased profitability which is a strong reason to consider franchising in Asia.

Asia’s Consumer’s Prefer Franchises
The evidence is tending to demonstrate that the retail boom in Asia has been very much a boom for franchises. The very high representation of local franchises in the Philippines, Malaysia, Korea and China to cater for consumer preferences demonstrates that there has been strong demand for franchises across the region.

The Economics
The solid economic growth in Asia represents a great opportunity for franchisers. The increase in the purchasing power of the Middle Class represents the underlying driver of franchise growth. As each economy develops, consumer demand will remain strong and franchisers will need to go where the market is going.

As always, it is a matter of choosing the right franchise, however Asia is a great place for franchising and will only continue to be a franchising hot-spot in the years to come.