Franchiser would want to request for a reasonable franchising fee. However Franchisee may want to see a payback period of within a two-year period. Then how the Franchiser and Franchisee would get their mind meets.

Franchisee therefore needs to have a financial workout and a realistic outlook to start the Franchise business. You would ask how much financial commitment do you to kick start.

You would have done your homework as to the type of franchisee you would like to go in. Now, let say, you are keen to start and food and drink kiosk. Through your market study you recognize the food on the move would attract consumers with good quality food and yet affordable.

Franchiser for this kind of business would like to have many kiosks spreading over the country but within a 3 to 5 Km radius to have one outlet. You would also establish which location you have in mind and how much the rental would be.
continue reading "Franchising - How To Get Started With Small Financial Capital"

Franchise, a business model in which people would explore. Yet you may have the ingredient and pick the right franchise. But you are frustrated why it did not achieve the financial result that you set for yourself. When you engaged yourself into this franchise, you are clear about the financial return, be it payback period, the profit margin and expansion program. But all these are on paper only.

Plan needs people to execute. You say to yourself, you have put in the hours as expected.

Did all highlighted by franchisor. Selected the right supplier but still can’t make it big.

continue reading "Franchise – How KPIs Set You Going"

Franchise business do they need Key Performance Indicators a.k.a KPIs. Would you be surprise to know the answer that is yes? Franchise is still a business that needs you to focus on your performance. Now you acknowledge that KPIs can help you to measure the success of your franchise business.

Franchisor wants to grow the business by having more franchisees and build a strong brand for customers. Franchisee is to ensure customers enjoy coming to your shop and enjoying your service. Franchisee focuses on customer’s satisfaction.

You can set some KPIs on the relationship with Franchisor and how Franchisor can help you to meet customers’ needs and also be satisfied with your products and service.

continue reading "Franchise – Setting KPIs"

Franchising is a two-way business model. You may be the Franchisee as of today. When you are successfully implemented and realize your dream, then you are really to have a master Franchisee. As a master Franchisee, you can start recruiting your Franchisee reporting to you. So, with this arrangement, you are acting like “Franchisor”, except you do not own the “Brand”.

Another proposition is that you have a profitable business and can be duplicable for business expansion. But you need someone to put in the finance and operational staff to run the business expansion locally and regionally.

Master Franchisee

To be the master franchisee, you would have experience to run as a profitable business. This would add credit to you and you would also know what has done right and what mistake to avoid in franchising. There would have been some adjustment for local needs as well as enhancement to the products and services. Your sharing as a Franchisee would gain more respect compared to those without real life experience as Franchisee.

continue reading "Franchising – Have You Ever Thinking Of Being The Franchisor?"

Small business always needs more frequent update and assessment on how you are doing. The process helps you to establish your strengths, area for improvement and business opportunity to get more clients.

How frequent is the frequency to do an assessment. You would be doing your sales income and expenses on a monthly basis, to monitor you profit or loss in your small business transaction. For assessment, it is usually on a six-monthly duration. Why choose six-monthly. The period would give you a clear picture for you to diagnose your clients’ database, inventory that moves within 30 days, margin from the products and payments collection pattern.

What happen when you do not assess your current business situation. You would not be able to develop your action as well as your direction for your small business operations. Especially for small business, you need to be flexible and adaptable to market situation. The market situation takes a subtle ways as the consumers tastes would be influence through new products offer, new experience of food price change due to inflation or economic factor.
continue reading "Small Business – Self Assessment of Current Business"