Is Buying a Franchise Beneficial in 2023?
By Debatri Das
The Franchising industry in India over the past few years has had rapid growth with more than $51 billion. It is now one of the most profitable business sectors of the country. Sachin M in his article for Entrepreneur India rightly calls India “a “sizzling’ marketplace for franchising.”
Starting one’s own business requires a plethora of resources. Acquiring these resources in the first place is not only time-consuming but also heavily expensive. With a new business, there is also the looming question of whether or not it will be able to survive in today’s highly competitive markets.
As a business owner one needs to fund everything from scratch including product development, market value, labor requirement, and cost. One also needs to attract investors who will help the business grow. Only after conducting extensive and detailed research can one acquire these without fail. Even then the list is not complete. There is still the aspect of customer attraction which is in itself a crucial yet extremely difficult task to achieve.
6 Compelling Reasons Why Franchise in India is More Beneficial in 2023
Here are six reasons why buying a franchise in India is more beneficial than starting one’s own business -
1. Brand name - One of the key elements needed to succeed as a business is the brand name. Without a successful brand name, nobody would know anything about the business. When it comes to such an established name one can take the example of Kalyan Jewellers. It was established in 1993 and today is one of the top jewelry companies with over 137 stores.
Along with India it even has showrooms in the Middle east. Someone who is just starting in the field of the jewelry business would find it hard to compete against such established companies. But buying the franchise of the same company would give one the right to sell and distribute their products along with several other benefits. After buying the franchise, the franchisee need not think about how to make the business known as it is already popular and well known.
2. Support System - Most Franchises provide readily available support systems such as the location where the company is to be developed. The franchisee need not worry about assistance as that is also provided by the franchisor.
Other services that are often available are the training for crucial teams like management teams. These are some of the major areas that a successful business requires and by buying a franchise, they can be easily solved.
3. Customer - As discussed in the beginning without attracting customers a business can never be successful. But as a new business owner that can be quite a frightening challenge as no one yet is aware of the business.
No one knows the kind of product the business sells but buying a franchise especially a popular one like Kalyan Jewellers can take away all such worries. Because such franchises are not just popular but for years have had a strong and loyal customer base. Thus, if an entrepreneur decides to buy a franchise, he/she/they would also receive an already established customer base.
4. Product development - No matter which market one ventures in, that field is forever in the state of evolution. Not a single field of business has remained the same as it was in the beginning. That is because human society has changed.
Consumers, their requirements, and their demands have gone through massive changes. Especially today in the world of AI and other technological innovations every aspect of one’s life has changed. And along with this change to remain firm in the market the products and their services also require a necessary change to fulfill the wishes of the customer.
When starting a new business, one cannot neglect this aspect. Buying a franchise would allow one not to be concerned about such things as it would be the responsibility of the franchisor to keep track of the changing market and develop their products accordingly.
Suppose one wants to start a cellphone business and instead of starting their own business they buy the Apple Franchise then they would not have to worry about how long this product would sell as the franchisor themselves would take the responsibility to bring newer models with new facilities every few years.
5. Investment - Money from various investors is more than necessary because how else would the business grow? But to attract investors, first one needs to show that their business is profitable and would not go bankrupt in the near future.
This can extremely be unnerving for a new business owner, especially amid several competitors. But in an established franchise like that of Kalyan Jewellers or Apple, one would not face such a problem as their investors are aware not only of the popularity of their business but also of their immense profitability.
6. Marketing - While discussing a business one cannot leave out the effect of marketing and advertising. For a new business, marketing is both necessary as well as financially taxing. Necessary because how else would the company gain an audience and customers?
It is also financially taxing since being a new company the profits are still not enough if there are any, to fund the huge costs of advertising. Buying a franchise can solve this problem easily as an established brand name the franchisor already possesses sufficient marketing resources.
See More: How crucial is the timing when you are buying a franchise in India?
Conclusion
This brings us to the end of this article; we hope you have enjoyed it. Apart from the above significant reasons, there are other reasons why buying a franchise in India is more beneficial than starting a new business and it is the ready availability of other equally important resources such as a website or domain.
The presence in the world of the internet is very important today and without it, there is no guarantee of success. The area in which a new business struggles the most is that of resources. Hence, buying a franchise can settle that worry.
References:
https://www.franchise.org/faqs/basics/what-is-a-franchise
https://www.investopedia.com/terms/f/franchise.asp
https://www.tumbledry.in/10-most-profitable-franchise-business-in-india/
https://www.entrepreneur.com/en-in/growth-strategies/india-franchise-industry-facts-figures/345698
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