How Crucial is timing when you are buying a franchise in India?
Written by: Resham Daswani
When is the ideal time to buy a franchise in India? Wondering if such a thing exists? Well, yes, it does. This article will clear your doubts about the importance of timing when acquiring a franchise business in India. And much more.
Timing plays a crucial role in the success of a business. Several timing-related factors need to fall in place while planning to buy a franchise in India, which will help it work.
How is timing important when buying a franchise in India?
Here I come, ready or not.
Although it is not nearly as casual, this one is the first one. When a person is prepared to take ownership of their business seriously is a personal decision. When a franchise consultant meets someone who is considering starting a business seriously, we always want to know, “why now?” Answers along the lines of “I've been thinking about business ownership for years” or “I've always wanted to operate my own business” are not uncommon when asked, “why now?”
The key is that, typically, “Now is the time” is a result of something that has occurred recently or in the present. Without that, there is an insufficient drive to persevere in what may be a difficult route toward business ownership.
A monster is skulking under the bed.
Almost everyone who begins to consider owning a business will have to confront the fear that comes with the danger of doing so. Simply said, there are no assurances that it will succeed. Risk tolerance is undoubtedly a component to consider when overcoming fear. It's OK for some individuals who do not have the necessary risk tolerance.
Not everyone should or is suited to run their own business. Nevertheless, getting reliable information is crucial if you want to keep the monster under the bed in check or at least start to control it. Speaking with the franchisor, studying the Franchise Disclosure Document, carefully obtaining data from franchisees, putting up a proforma, having a franchise attorney check the legality of the franchise agreements, having your accountant review the figures, etc. All these factors contribute to reducing fear. The timing of possessing the required risk tolerance is thus another piece of the timing challenge.
When should entrepreneurs think of acquiring a franchise in India?
The first answer that waves across your mind is, are you ready for it? If ready, then in what way? Are you financially ready? Are you psychologically ready? Or maybe a state where calm attentiveness becomes one’s actions and is guided by intuition rather than conscious effort. Well, I think this is the one I would trust my instincts completely.
Unlike most investors, your initial inclination would be to focus on your financials, which means asking yourself, “do I have enough money to purchase a franchise business in India?” Don't forget that you'll need adequate cash to start a franchise in India. This cash will be used for both investments and other costs when your franchise is operating.
So, the question arises, Is this timing right, financially?
Well, that’s for you to decide. If you are a middle-class individual pursuing your career, depending on your personal life, you could choose to decide if that would be right for you or not. If you are an investor, who possesses significant net worth, the question is how significant?
As a first-time entrepreneur or an investor, you will need to come up with the initial investment which is required when starting a franchise business in India. In case you don’t have the initial investment, you would need to look at taking up a business loan. But that’s not all. You would also need to account for all the monthly business expenses that you would require until you start making a profit when the business is ongoing.
Once you have calculated how much your finances would require taking into consideration the initial investment followed by other expenses like salaries, maintenance, and more, it is now time to move to the next step.
Are you prepared to purchase a franchise business in India?
There is a massive difference between depositing your paycheck and depositing money into your business. Thus, if you have made a good choice to own a franchise business in India, this will increase the amounts on your pay cheques. But remember, when you decide to become a franchise owner, patience is significantly important.
The best part of becoming a franchise owner in India is that if you have done a good research before acquiring the franchise, you would be having an approximate idea as to when you would break even and start making a profit and good returns on investment.
Finally, you can do it!
Buying a franchise in India takes a certain amount of courage, just like purchasing your first house or even your first car. You did the research, you asked people about their views. You can do it here as well, be methodical, try and meet and talk to existing franchisees of the brand you are interested in acquiring, ask about their transition phase and get some tips.
Timing is a very crucial aspect when deciding to purchase a franchise business in India. FranchiseBazar consultants can guide you on the best available franchise opportunities in India. Grab the opportunity today, and we will help support and simplify your search.
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Written By: Resham Daswani
Written By: Yukta Palekar
Written By: Resham Daswani
Written By: Yukta Palekar