Franchise Resolution In 2005
The outlook for 2005 is out; it is going to be yet another challenging year, with the recent increase in oil prices finally settling in. Economic growth rate is going to be modest and the traditional manufacturing engine of growth may be hard-pressed with the Singapore –US free trade agreement being in effect.
For the normal man-in-the-street, this can be the right opportunity to take stock of his financial direction and start on a totally new career direction – creating a franchise.
Is this idea implausible? Not so. A slower economic growth may translate in a lower financial outlay in market research and R&D. You could be very involved in a hobby that may be the catalyst for a successful business that may eventually lead to a sought-after franchise, like craftwork and clay-modelling.
Do take heart. Many franchises were once thriving “one-man-shows”. You can view setting up of a franchise as building up your solo effort – like being a conductor of an orchestra. Success in your franchise will be multiplied by the satisfaction from your franchisees.
Here are more tips about creating and maintaining your own franchise in 2005.
(Franchise Valuation)
This is a difficult question to start with. It is like a business valuation and the answer is with you. If you project too conservative a figure, your potential franchisees may not be attracted as they will not be confident in breaking-even. Conversely, if you project an exaggerated figure, your franchisees will feel extremely shortchanged and may try to legally rescind your franchise agreement. The best starting point is to create a business plan.
(Unique Idea)
Many people are unsuccessful in the area of creating a franchise because they fail to realize that their idea is not unique. They do not make the effort in getting a patent protection and may feel that branding recognition is sufficient.
(Your Networks And Support Crew)
This group actually make or break you franchise. They can either be your current loyal customers who through word-of-mouth help to increase the positive exposure for
your franchise. They also include your family members who may be around to pick you up whenever you lose focus. Do not forget your own personal circle of friends and even alumni!
(Your Financial Means)
The government has a number of grants for franchises. Many local banks also provide generous trade loans for businesses. These avenues provide much needed financial lifeline for you. Having a sudden cash flow problem may be a serious impediment for your franchise.
(Market Research)
If you have an idea, have you spent enough market research time (and dollars) understanding who are your target audience and what are their price expectations. Your product may be too personalized (you and the brand are one) to be successful in selling your franchise to other people. You could be too synonymous to the product – it may have to be a one man show.
(Managerial Skills)
You have to be honest with yourself; do you have good managerial skills? Creating a franchise means being expected to handle daily problems like logistical delays, product faultiness and franchisees grouses. This implies that you need sufficient time management and people skills. You also have to be very persuasive.
(Promotional Efforts)
You have to constantly find innovative ways of creating awareness for your franchise. You may have to attend trade shows, design advertising copies and maybe make cold calls to create exposure. The good news is that you can always engage a PR/marketing firm to do your promotions once you have enough financial outlay.
(Write A Book!)
Writing a book about your franchise gives both exposure and credibility. You are also able to share your thoughts to readers who may either be franchisees or customers. A definite win-win.
About The Author
Colin Ong TS is the Managing Director of MR=MC Consulting (http://www.mrmc.com.sg) and Founder of 12n (http://www.mrmc.com.sg/12n)
colin@mrmc.com.sg
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