For an aspiring (or existing) retailer/entrepreneurs – small or big, turning into a franchisee of a brand, particularly for a famous & effective outfit, appears to be a shorter way to success. All things considered, the overlooked details are the main problem and there’s a whole other picture for franchise business opportunity than upfront overheads and initial successes.
Now what we will be discussing below is the process ahead post you have decided the industry and brand go ahead with…E.g. – You have decided to start a Denim store of a leading Jeans brand belongs to the Garment Industry. This could be anything from garment to footwear to Kitchen Products, etc.
What are the “must think before” things you must consider while assessing a franchise opportunity?
Commercial Viability & Margin Structure
Before beginning any retail business, the matter of first importance thing is to get comfortable with the business practicality of the task. A hand on “return on investment” analysis to be done before whatever else is getting concluded. A retailer must know the actual outcome in monetary terms post including every single real-time expense and revenue capacity. When that clarity is there than only proceeding ahead is anticipated.
Target Market Place (High Street or Mall)
The first thing that comes to the mind before deciding the perfect area is whether the store will be in a Mall or a High Street Market. likewise, one that is near and suitable to your neutral market for the Product category you are getting in to. You ought to survey the neighborhood market before shaping a real estate contract (retail space). If you are looking ahead to run a specialty shop, the size and characteristics of the neighborhood market play a key job. If you put resources into a bigger discount or retail establishment, you need to pull clients from a more extensive geographic region to make enough income and benefit. This factor impacts the amount you have to put resources into the target market.
Best Location basis your requirement and Budget
One of the key beginning stages in setting up a retail store is the correct location. Getting into a perfect business location is one of the best competitive advantages you can have over your competition as they cannot copy the spot even if they want to. The challenge is choosing what area is the perfect basis of following major key factors:
- Organic and Regular Walk-ins Potential
- Commercials – Rent, Rent Deposits, Taxes, Building Maint Charges, etc.
- Retail Space required
- Signage value (if it’s a High Street)
- Brand Environment – availability of other same domain or subdomain brands
- Staff Accessibility to Premises/Store
- Parking Facility for customers
- How Old is the premises?
- Agreement Lock-in Period.
Competitive factors furthermore influence the viability of a retail start-up. The perfect situation exists when you start a unique business that offers sizable market merchandise or service that can’t develop somewhere else. All in all, beginning a start-up business in a market with “next to the minimum competition is an idea”. In any case, the absence of rivalry may result from boundaries to the sector, absence of market growth, or unsuccessful efforts by previous marketers. You have to run a SWOT analysis to see whether your present potentials and limitations, joined with future changes and risks, place you in a thoughtful place.
There are two simple approaches to commence a retail business. You can assemble one without any preparation or put resources into a well-renowned franchise option, where you buy the rights to a present business model. In either case, you need some money-related cash-flow to begin. On the off chance that you need more reserve funds all alone, you can fund-raise from the financial institutions or banks, however, they should perceive the practicality of your business strategy. Alongside startup cash to run the initial days’ operation as the business will take some to get settle down, you need enough money to purchase stock and to peacefully support operational activities while you work to generate revenue.
Lawful and Legal Background of your industry
You additionally need to understand legitimate and administrative realities that influence your industry. A few ventures are intensely directed, while others have negligible government guidelines. Free guidelines make it simpler to open up a shop. In any case, you may need to get an expert or business license sometimes. To run a liquor store, for example, you need a particular license. On the off chance that you need to open a gun shop, you have to get government and nearby laws on legitimate permissions related to Arms & Ammunition certificates.
Check for Verified Professional working culture
When you purchase a franchise of a brand, you’re purchasing a well settle name & expertise plan of action along with it. In any case, if that prospect doesn’t work as planned or demonstrated, at that point you’ll be running clueless. There ought to be a system for everything from finance and advertising to customer administrations and retail.
Check How They Treat Their Existing/Previous Franchisees
It is critical to follow how the parent organization is treating existing franchisees to check whether it is a correct fit for you. Proceed to make the individual visit to the gathering of franchisees if the organization isn’t eager to let you meet them this is certainly a warning. Keep in mind, when you get into an arrangement it is extremely hard and costly to get yourself out of one before time. Pl ask for some reference and do a follow check before anything concrete takes place.
Other Major one-line point blinkers to be taken care of is:
- Make Sure they successful track record
- Obtain Territory Exclusiveness in contract & prior clarity on the same
- Go for the practice of Information Sharing among Franchisees
- Seek out Guidance from Current Franchisees
- Analyze Marketplace Opportunity regularly
- Go for Low customer acquisition cost & Enhanced brand recall
- Get Relaxed & use to with Company Processes
To summarize, beginning a franchise business has a huge amount of clear advantages over beginning an ordinary business however there are likewise some different favorable circumstances like getting sufficient help, being a piece of a business organization, and appreciating a solid work-life balance. Youthful corporate people and speculators who need to attempt their karma should think about putting resources into a franchise business. If you are searching for the correct franchise business opportunity in India, kindly contact us, and we’ll hit you up and guide you for free.
Dynamic Retail Math Kit For Retail Success
Dynamic Retail Math Kit Includes:
This downloadable product is a complete guide to provide you the handy and applicable knowledge on retail math skill sets, which is one of the most important know-how in the retail industry and in-demand skill set.
- E-BOOK (PDF)
- RETAIL MATH EXCEL SHEET (WITH EXPLANATION)
- INVENTORY ANALYSIS SHEET (EXCEL)
- SALES ANALYSIS SHEET (EXCEL)
- HOW TO IMPROVE RETAIL MATH SKILL SET?
- ROI SHEET – (EXCEL)