Today hardly anyone on the internet would not know what a millennial is or rather who a millennial is. They are the population group who turned adults in the new millennium. Anyone born in or after the year 1982 up till the year 1996 constitutes this group. India is one of the most populous countries in the world and millennials form about 47% of the workforce of India, which takes their number in our country to a staggering 400 million, which to give you some perspective is higher than the population of the United States of America. Therefore, keeping their preferences and defining traits in mind while designing a marketing campaign would be essential.
Ambition and imagination rather accurately define this young generation. This means that with the undertaking of effective marketing steps, this generation can be a highly successful demographic segment to venture into franchising. The marketing campaign for them would have to be customised according to their preferences and habits and characteristics. Let’s learn a bit more about these. Millennials are the generation that has grown up with the internet. There is no working generation on whom the impact of internet can be seen more evidently. They make all their decisions with the help of the internet, from personal everyday investments of their money and time, like choosing clothes, electronics and restaurants to financial investments and even long term investments like their career choices. They absorb all kinds of information like critiques, articles, blogs, social media posts, news and all happenings in the world around them and even the parts of world not so close. Exploring this relationship that they share with the internet, we can use it to directly reach them and illuminate them with the benefits of opting for a franchise. Most of the steps to be incorporated in your marketing campaign would be carried on the internet. Below are listed some key points to consider while marketing for millennials. Data Analysis: Most millennials are addicted to their phones and spend over 17 hours a week on an average on their phones. This provides us with ample data, which can be used to target the most suited customers. Using data analysis, you can learn about their preferences, career, history, income and interests among other things and with this information you can narrow your target audience to those who suit your criteria better and start with advertising for them. Some data might be freely available and more can be bought at a price. Social Media Marketing: A large chunk of the time spent online by millennials is devoted to social media. Other than being cheaper and more convenient than other marketing media, social media marketing is also more direct and personal and makes the customer more accessible. Social media also helps in visualising your content. As mentioned earlier, social media marketing can be made very effective with the help of data analysis. All creative and content posts can be shared via social media accounts and can be advertised too. Brand Recognition: Due to their high levels of exposure to information, today’s generation is aware and familiar with varied brands and using the brand to gain an edge to sell a franchise opportunity should be one of the first things to be done. Positive impact of the brand and customer stories by customers who directly engage with the brand should be shared. Marketing content should clearly highlight the brand value and convey its success story and mention its pre-existing customer base. Content Driven Marketing: This is probably one of the game changers in marketing, which can actually increase your sales. Since we already do understand so much about millennials, it’d be wise to use it to your advantage and create content for them, which would attract them and increase your sales. So, read carefully on how to customise your content for them. Here are some examples, which can be used conceptually to create content, which appeals to this generation.
Even while using the above examples, it is essential to visualise your content. The attention span of people today has reduced due to infinite bombarding of content and if your content is not visually engaging then chances of them spending time to absorb it, reduces. Focus on Morality: Millennials are no longer merely satisfied by earning high-figure incomes and running businesses. They are also aware of their responsibilities to the country and the world as citizens of both. You need to share with them all, if any, of the environmental, social or economical steps that you take, which benefit our community or the planet as a whole. It could be small things like not using plastic, to using only recycled paper and paper products, to employing or sourcing locally in order to increase local employment or you could even mention any donation or charity work undertaken by your organisation. Provide Opportunity for Loans: Marketing campaigns often include tie-ups done with other organisations, which at times dramatically help in increasing sales. Any such tie-ups done with banking or financial institutions for considering franchisees for a loan for the investment would greatly help the cause. Millennials are more likely to take loans for investments than their older counterparts and such a move could encourage them to venture into franchising. Influencers: Other than direct advertising, social media also creates an opportunity to advertise indirectly through influencers, who command a large number of followers and help in reaching out to niche audiences even within millennial groups. For example, a franchise opportunity for a fashion brand could be reached out to a considerable number of fashion enthusiasts by a single post of an influencer. Bloggers can also be grouped with influencers and can be used to advertise through their posts. They too have loyal followers, who read their blogs regularly and can turn to potential customers. Millennials are the present and the future and understanding them and creating our strategies based around them is the most sensible thing to do. Apart from everything that you have learnt today, do not forget to use your imagination to reach out to the ever-imaginative group of millennials. If you follow all these steps, there is no way you wouldn’t succeed in making some heads turn and take notice of your brand and very soon you will have them wanting more.
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Every entrepreneur dreams of his business turning into an empire one day. To achieve this goal there are many ways to fuel growth. Banks provide a loan, investors provide capital with a view to gaining a part of profits or you can reinvest your profits in the business and let it grow at a slow pace. If you are thinking of growth without the added burden of interest, ceding decision making power to investors, adding more capital to the business, or growing at a slow rate, you will like the idea of a franchise business. There are many advantages of a franchise business. A high rate of growth There are many reasons that a business should grow. Growth is necessary to ensure that a business maintains a virtuous cycle of business where profits go back into the business to improve it. If you do not grow the reach of your business according to the demand, you will lose major market share to the competitor that addresses the consumer demand with an increase in supply. It is difficult to open a single branch that is owned entirely by you. Such expansion of business would require your capital input and also demand your time and attention. This is not possible for small businesses that are doing well in one location but do not have the resources to ensure the same quality in another branch. The option of growing through franchises is available to such small and big businesses. A business can open franchisee units of business at multiple locations at a time. This increases visibility and access to the market and there is a better chance of capturing a higher market share. Better Management If a business opens a corporate-owned outlet, it is usually run by a manager that works for a salary and incentives. The manager may be skilled but he will not focus as much on profitability as a franchisee would. A franchise is invested in the business for a long period of time. This association gives a better understanding of the business and results in better management of the outlet. There is a high degree of involvement in all aspects of the business and a natural focus on the problem areas with a view to deriving solutions. This helps in improving the products as well as processes. Investment Expanding presence in the market through more retail outlets needs a lot of investment. The investment would be needed for infrastructure, staffing, working capital, operations, and marketing. Opening multiple outlets in a short time would mean a lot of investment capital. On the other hand, selling a franchise would mean that the franchisee will raise the capital investment needed and pay franchise fees. The ongoing royalty would mean a steady income for you. Many such franchisee outlets would mean a significant rise in income for you without any significant capital investment. Low risk of failure A franchisee typically takes on managerial duties and being concerned about the success of a business, is committed to ensuring smooth operations. He will focus on reducing small losses that arise from careless handling, theft, and indiscriminate use. If he understands the business to its core, he will ensure customer satisfaction, thereby, gaining loyal customers. A franchisee usually tries his best to operate with a small staff and relies more on himself. This reduces the cost of manpower. In all, a franchisee tries his best to increase profits and establish the business with a long time in view. This automatically reduces the risk of failure. It also transfers other risks such as litigation by customers to the franchisee. Expansion in difficult areas While a businessman focuses on markets that are prioritized by him, he loses a potential market in the area that he finds difficult to operate in. Allotting a franchisee in such difficult regions, allows him to test the difficult markets without actually taking any risk. In a country as vast and diverse as India, it becomes essential to consider location specific demands of the market. A local player will have an advantage in such a situation but a franchisee can provide that advantage of location-specific knowledge and reach. Valuation of the business For an entrepreneur who plans to sell off the business once it is established, valuations matter a lot. Even otherwise, valuation can be useful in attraction investors looking for lucrative businesses to park their money. Often, big businesses that are diversifying or competitors looking for growth through acquisition of the existing business offer good deals to owners of a successful business. A business with a presence in many cities has a greater market base and lower risk. A franchisor would have naturally invested in branding and marketing too. This helps in higher valuations of a business and the entrepreneur can sell it at a high value. In order to truly take advantage of turning your business into a franchisee business, you will need to be true to the core values of the franchise business. Chose only those candidates that have it in them to work towards the success of a franchise unit. There will be many who can invest in the business, have relevant experience or show great business acumen. The right candidate will be one that has a combination of all three qualities.
Such franchisees are hard to come by and one may be tempted to think that the franchisees can be groomed over time. It is a big mistake to give in and recruit such franchisees. They will not be able to operate the business successfully and increase your task in dealing with them. A franchisee outlet that does not function to the required level will result in a loss of brand value. Remember that it takes ages to build brand value but only a few bad experiences will destroy it. Franchisors also need to be careful in choosing a location to issue a franchise. A business can never succeed in the wrong location, irrespective of the market for its products and service. Ensure that the business will be based in a suitable locality. Make a proper analysis of the market that you are planning to enter through the franchise route. If you are not confident of creating a demand for your brand in a particular location, refrain from opening a franchise outlet over there. The advantages of turning a business into a franchise model are many. Focus on your own goals and take the decision to expand while keeping these goals in mind. If you are ready to face the challenges that come up with franchising a business you will be able to prepare for it. Any business that prepares well before expanding will advantage greatly from the franchise model of business. A clever entrepreneur will plan well in advance so as not to miss a single advantage. You can begin your efforts by refining your existing business model to make it more suitable to a franchise business. In case you think that it is a challenge to adapt your business model to derive a franchise business model, talk to one of the consultants at frantastic.in, You will receive guidance on the actual scale of advantage that will be gained by you from running a franchise business. A franchise business is a wonderful idea that makes being an entrepreneur possible for so many people who would otherwise never be able to put together the pieces of the jigsaw puzzle that a business looks like to most of the people. A person who has the experience, and motivation but is daunted by the scale of operations or the sheer task of end to end management of a business has the option of testing waters with a franchise business. The franchise business model is designed to be easily replicated using a fixed format of business. Those willing to make the investment are given support to do business by reducing the scale of operations and functions like marketing and product development. In return, the franchisor charges a franchise fee and other fees at regular intervals of time. Due to the fixed format of business, the time required to set up a business is reduced greatly as compared to a business that has to be started from scratch. Though it seems that a franchise business can be started at the drop of a hat, it is not so. As in everything in this universe, there is a right time to start your franchise business. One has to make some considerations in order to judge the right time for a franchise business. If one wants to ensure that the franchise business is started at the right time, preparations should be started much before the actual time. It takes a lot of time to research the franchise opportunities available and to find the opportunities that would be best for you. Don’t wait to begin research. Begin immediately by looking inwards to define your skills, experience, interests and investment capacity. A simple thing such as knowing your own interests often takes up ages for persons who have never learned to prioritize themselves. It might look like it won’t matter much but interests and passion for something give the drive needed to make a business successful. Apart from this, you have to consider the experience you that you can put to use while marking out areas for improvement and learning. If you are able to do this objectively, you will be able to catch on the learning or experience that is lacking by working or taking up an online course. For example, you may be very good at managing operations but are rather weak with finances, you can take some lessons to improve your understanding. In order to operate a franchise business successfully, you will need to be strong in all aspects of management. This takes time, so prepare in advance. Raising finance will be time-consuming too. It takes time to apply for a loan and banks to process it. When you approach a franchisor you will need proof that you can raise the finances that are necessary from a bank or from investors. It can be tricky because banks also want to look into the business before sanctioning a loan for you. You may be saving up to invest in a business or to ensure that you can maintain your lifestyle until your business is established and churning out profits. This can take up a lot of years. Until your finances are not in place, it is definitely not the right time. There are many stages in the life of a person and each stage is to be devoted to a particular objective. Aspects of personal life, like need to devote time to spouse, children or aged parents in need or care should not be ignored. One has to plan these important aspects of life in coordination with starting a franchise business. A family can become a responsibility which drains you or it can become a source of support depending on how you time it. Once you are ready to start your journey of entrepreneurship, you will have to wait for the ideal franchise opportunity. If you are very well prepared, you will be able to strike a deal in a timely manner. When discussing the timing to buy a franchise business, it is necessary to be stated that a popular business chain is opening a franchise opportunity does not mean that you have to buy it immediately. Buying a franchise, operating it, and generating profits from it is not possible without adequate preparation for financing, employing skill and preparing for a successful launch. Do not be in a hurry to buy a franchise. If you are very close to completing all your preparations for launching your own business then you can consider speeding up if a very good franchise opportunity for business comes up.
There are also economic cycles and seasonality to be considered when buying and launching a franchise business. The recent years have seen a slower economic cycle and some big ticket sectors such as real estate and luxury goods are losing revenues and decreasing profit margins. But other sectors such as education and health and wellness continue to do robust business. In a country like India that is largely a farming economy, seasons also matter. There is enough money in the harvest seasons for boosting the economic cycle but the lean seasons do not generate sales. Festivals in India are also in accordance with seasons and account for major spending sprees across all socio-economic classes. Under the influence of western culture, some of the days like New Year are also binge seasons for the food and beverage sector. It is advisable to time your business in such a way that it is well established and ready to take advantage of the spending season. No business performs well during the lows of an economic cycle but one may mistake it for a personal failure or regard the business model as lacking robustness. On the other hand, it is good to test a business model and one's business acumen in an environment positive for business. This will give the correct picture for the long term. Bad timing can make you stressed out due to lack of preparation or lack of business. In the event of lack of preparation, it leads to negative publicity through word of mouth. This again results in a slow cash cycle. During such a time, everything from profitability to manpower falls apart and becomes discouraging. Good timing can give you a head start in the business and speed up your cash flow cycle. It will also boost your confidence and keep up the morale of your entire establishment. The more you are prepared for investing in a franchise business, the more you will feel that the time is right to buy a franchise business. In all, it can be said that the best time to buy a franchise is when you have saved up enough money or arranged for finance, settled down your personal life and are feeling fit and fine. Such a situation has to correspond with an opportunity to buy a franchise business with the potential for success. It is a widespread belief that when a person has worked hard to put everything in place and feels that it is his true calling, the universe ensures that everything falls in place and success is guaranteed. This is especially true for buying a franchise business that interests you and achieving your dream of entrepreneurship. A simple definition of a franchise is the right to sell a company's products or services in a certain geographic area under the name of the company. Though this definition seems quite simple, there are actually many nuances to a franchise agreement. The differences pertain to geographic area, the scale of business, manner of operations and sales. In business parlance, models are differentiated on the basis of these differences. The suitability for a particular business entity will depend on the model of business in question. The main types of franchise models are product or service franchise, manufacturing format, business format franchise. It is also necessary to understand what is meant by a master franchise or unit franchise. Master franchise: Companies operating on a large scale use this route for expansion. When new markets in entirely new geographic areas have to be tapped, companies sell master franchise rights to a single entity for a relatively vast zone or region and often for an entire country. The master franchise will have the right to directly sell products and services in the market or appoint sub-franchises under their supervision. The details of the franchise disclosure document will decide the same. This method is used for expansion when a company is entering a new market that is very different from its previous exposure. It often becomes a necessity in countries like India where Foreign Direct Investment rules may not allow a company to sell directly. The responsibilities involved are administration, selection, training, and providing a support system. In lieu of it, a percentage of royalty on sales and franchise fees are received. A high level of management expertise is needed to establish smooth operations and guide an entire region towards growth in sales and revenue. The company benefits by gaining an edge over the local competition by leveraging the advantage of local players and fast penetration. As an entrepreneur, you can gain from expert management skills, the large scale of operations and international brand value. It is the best option for one who has the infrastructure and basic skills in manufacturing. Unit franchise: This is a good option for an entrepreneur with limited resources to sell high quality and well-known products or services. The territory would be relatively small and specific but by demonstrating the successful operation of one unit, he can attempt to buy more territories. The disadvantage is that he would have to follow the agreement rules and more often than not, be limited to a single brand of products or services. Payment of franchise fees and royalty fees decreases actual profit from a business. It will be easier for you if you are a beginner to establish yourself with support such as training, sourcing, and marketing from a more experienced central source. It is a low-risk proposition with ample scope for expansion. Product or service franchise: This is one of the earliest models used by businesses. Herein, an entrepreneur buys the rights to sell a particular product or service of a company in a specified territory. A few examples of this are computer peripherals, car sales and service, and mobile phones. The brand name and trademarks of the company are allowed to be used for business purposes. Products, training and related stuff such uniforms are provided by the franchisor. This works for the service sector too. In India, services such as carpentry, plumbing, laundry, and home cleaning are unorganized and unreliable to a large extent. Service franchises aggregate these service providers, provide opportunities to upgrades their skills and services and provide them with a large customer base which they can access through various forms of marketing. This also enables good service providers to benchmark their services through ratings by customers on an online company portal. Customers are increasingly inclined to avail of such services due to the standardization of rates, easy access, reliability, and safety concerns. There is a vast scope for service franchise in India in the unorganized skill sector such as driver service, laundry, and painting homes. Manufacturing franchise: In this agreement, a company issues a license for the production and associates their trademark and brand name with the product. Usually, a company has derived very specific products and transfers the process know-how to a manufacturer who has bought the license from it. Apart from know-how, sometimes, pre-processed raw materials, and training are given to ensure the manufacture of the desired product. This method is very commonly adopted in the food industry and is also applicable to products involving intellectual rights and patented technology. An entrepreneur stands to gain a lot from operating a manufacturing franchise by learning from the technology transferred and exploiting a ready market base developed by a franchisor. The company also gains by getting the chance to reduce operation related overheads. Business format: The term refers to a business model developed by a franchisor and then replicated at other locations by selling franchise rights. Once a business model is refined in every aspect such as product, service, operations, pricing, and sales, it can be replicated many times successfully. In order to achieve standardization of product or service, fully processed or semi-processed products are supplied at a national or regional level. Initial and regular training and other support is given for operations, accounts, and administration. The business space, its décor, and even location bear the signature of the trademark which is easily identifiable by the customers. Marketing is done at a national level and a high level of brand recognition is ensured. In return for all this assistance, a one-time franchise fee for a fixed number of years and ongoing royalty fees have to be paid. There are a number of other charges such as regular training costs, marketing fees, and software upgrading costs. In fact, a few models are coming up, wherein, there are no royalty fees. Once an entrepreneur establishes the business in one location he can invest in another or many such outlets to expand his business. The main purpose of buying a franchise is to take advantage of the scale of operations, marketing, professional expertise, and brand value that a big company can provide. There is a limitation on the decisions that can be made regarding business but at the same time, one learns a lot about business in a short time. Some models are more suitable for a businessman who is just beginning with limited capital, less experience, and lower managerial skills. Some models are suitable for those with high managerial skills and are looking for a scope of investment spanning across a large zone but wish to tap existing brand value.
In the absence of the well-defined franchise law in India, the franchise agreement is based on a bunch of business laws including the Contract Law. Due to this, it is very important to understand the nature of the franchise that is being offered, the period of validity and the territorial implications. Careful consideration of market, investment, competition, and Unique Selling Proposition will give an idea of the feasibility of a project that is being considered by you. There are pros and cons in all the types of franchises but by ensuring that your experience, financial and human resources, skill, and interest complement your chosen business, you will ensure success, profit, and growth. One of the greatest aspirations of any business-owner is to grow their business to unscalable heights. Every business-owner founds a business with utmost passion and hopes to achieve success in numbers and quality. Most businesses take at least a year before they can be termed profitable and a lot shut down even before reaching profitability. Establishing a business is a highly demanding and lengthy Endeavour, however, once established, its success can be easily replicated by franchising. Branching out amid the operations of an earlier outlet and opening a new store or outlet can be daunting. This is where franchising comes in handy. It is a great business opportunity, which helps established businesses to reach out to new customers and increase its customer base. A well managed franchisee outlet adds value to the brand and helps in building customers’ trust towards the brand, thus solidifying the brand’s proposition and promise of quality or delivery. Franchising is a cost-effective and low-risk solution to both, the franchisor and the franchisee. The franchisor can reap the benefits of having another branch while not having to worry about daily operations and the investment required to open a new branch. While the franchisee reaps the benefits of being a part of an existing brand and cashing on the familiarity of the brand within the customers’ minds. Franchising also makes it a great opportunity for new business entrants, who want to own a business but do not have a specific business model to follow or are looking to adopt established models. A franchisee agreement or license can be established between an existing brand, which wants to expand and grow its business by providing its services or products in a new location. Companies generally conduct market research to ensure that these new locations have a demand for the said product or services and can provide enough business to launch a profitable branch. Interested investors or entrepreneurs, who want to invest or operate the new branch by taking a franchise will sign up as the franchisee and will be responsible for the investment and the operations of the branch. The franchisor would provide the franchisee with rights and trademarks to conduct the business under their brand name against an agreed upon royalty sum or a combination of an initial sum and a rolling profit sharing system.
Along with this the franchisor also helps the franchisee in the implementation of systems and in adopting the business and sales model of the brand. The franchisor is also responsible for regulating quality at the branch as it is the franchisor’s brand image at stake. Depending on the type of business, the franchisee might also utilize the suppliers or vendors of the existing brand, which also adds to the ease of the franchisee. As seen, a franchise works as a win-win option for both, the franchisor and the franchisee. The franchisor gets to expand without the hassle of actually setting up another branch themselves and the franchisee gets to own an established business with certain expected sales and an established model and system. Today, we cannot even imagine our lives without franchises. The clothes we wear, the food we eat even the places we shop at, are all franchises and it says a lot about our current market scenario. The customer today is hammered with options and before committing to any product or service, the customer expects to be able to purchase the same product anywhere. The customer also expects the same standard and quality to be maintained, all this is only possible through franchising. Apart from adding new customers in new locations, franchises also add value to the brand by differentiating from a local store or outlet. It gives the customer the freedom to purchase their products from any of the franchise outlets by providing the same standard throughout. A customer might not commit to a cafe for a daily need like coffee, if he or she doesn’t think that they can obtain the same coffee even while travelling. A franchise adds the impression of quality to a product because the customer is familiar with the brand and trusts its quality, which is a highly sought after goal for any business and through a franchise, the franchisee gets to achieve this with minimal effort for creation of brand awareness. The franchisee gets to capitalize on the brand of the franchisor for a fee and in return gets to run a business, which if he were to start without an existing brand name would have taken him years to even generate interest in his potential customers. Clearly, in order to succeed today, whether being a brand or an investor or an entrepreneur looking to start a new venture, franchising is the way to go forward. India is one of the biggest emerging markets in the world. The middle class has been increasing over the years and as has its disposable income, which enables them to spend more money on goods and services. India is being targeted by the world as we see new brands entering the country every day. This is the perfect time to take up a franchise and increase your chances of owning a successful and low-risk business with a bright future. The stock of familiarity is the highest that it has ever been, so much so that even the entertainment industry in India is franchising and creating sequels and series and remakes of familiar content. With the wide exposure of the internet, customers are aware of all brands and products and they are weary of buying new and unknown brands. In this scenario, the best way to increase sales is to get into the franchising business and take up a franchise of an existing brand and reach out to customers. If you are an already existing business with profitable sales, then this is the time to branch out and create franchises and expand and grow your business. This is the time to acquire new customers in different locations before they already become loyal to brands available in their areas, this is the time to venture out in these areas and convert them while they are still new to the rampant consumerism that has taken over the country. So, do not waste anymore time, grab this business opportunity and start franchising your way to success immediately and become a part of something big. It is the dream of each business person to go huge and maximize profits. Things, however, are plenty less rosy than these fanciful dreamy setups and putting in a replacement business is a difficult task.
If you happen to be somebody who isn't terribly keen on coming up with and creating policies then it's not a nasty plan to shop for a longtime franchise instead. However, is it in any means a guarantee that you just would build a lot of money? Not if you are doing not take the proper steps and read the remainder of this text. Pros if buying a franchise 1. You're given a good begin and a ready-made foundation. This reduces plenty of your work and you'll be able to concentrate on different aspects for increasing profits. 2. The dimensions of the franchise could assist you with vital cost-cutting. 3. There already is staff for the research work and for following existing trends. Cons of buying a franchise 1. It's robust to introduce some creative thinking and make changes within the setup. 2. There's an franchise opportunity that things might fail then you'd have to be compelled to bear the burden of giant expenses. 3. The foremost difficult issue that might happen is that the steady support of the franchisor could disappear when the business startup off which will create some issues for you. Conclusion: All this lead to the conclusion that you simply will really build tons of money, the kind that may be otherwise not possible while not the purchase of the franchise. Buy it at the proper time and place and ensure that the running method is flawless so you make the money you desire. It is vital that you simply determine your strengths as soon as possible and work on the potential areas of growth to create it work. With all this in place, there's no reason why you'll not make a huge sum of profits presently into the business. Remember although that night long success may be a story and work hard to urge the desired result. |
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