Start a Franchise Consultancy Service in India in 2023 – A Complete Guide
Written By: Shruti Agrawal
The Indian economy continues to grow and since 2014 the government is putting in a lot of effort to promote people to invest in different start-ups. So, from the perspective of an entrepreneur, this is the right time to venture into the business world. One such promising business startup is the Franchise Consultancy Service business in India.
This is a business which proves to be a win-win from the perspective of both the franchisor and franchisee. The franchise consultancy service business has immense potential in the business world, offering an opportunity to leverage established brands.
Here is a comprehensive guide for you to take you through the process to establish a successful franchise consultancy service business in India.
Understanding the Franchise Consultancy Business in India
Just like any other business, before diving into the franchise consultancy one must understand the depth of the business. It is not immune to change and continuously needs to evolve and adapt to innovations, welcoming the consumer and market demand.
So, it’s crucial to comprehend the dynamics of the franchise business.
The Indian market throws up multiple opportunities in a variety of sectors including food and beverages, restaurants, fashion, retail, education, health, and wellness and more. The industry can grow further if people start investing in franchises, which allows them to share their risks, and get an established brand name and a proven business model.
Follow the 12 steps below to get access to a wide variety of opportunities related to the Franchise Consultancy business in India.
Step # 1. An Extensive Market Research
A comprehensive market reading is a must i.e., invest your time before investing the money in the franchise consultancy business. Reading the data, the market trends, consumer preferences, and sectors promise growth.
Other than this, one must also do proper research about the competitors and the opportunities and challenges of the sector.
This helps the entrepreneur to learn from the established forces and understand the pros and cons and prepare beforehand for any adversity.
Step #2. Find The Niche
In a dynamic market of franchise consultancy business, specialization is a must. If one wants to make an identity for itself, then one should know in what niche they can work best.
Specialization allows one to be an expert and allows you to prove to stakeholders that you are better than others in the business. This will attract many clients who can seek guidance from you regarding their venture.
Step #3. Become Informed
If one wants to prove itself as reliable and a confidante of entrepreneurs, one must require expertise in different spheres. So, franchise consultancy should invest their time in getting in-depth knowledge.
These include the different stages of business development, legal commitments, marketing strategies, financial prospects and more.
This allows the franchise consultancy to provide holistic and refined advice to its clients.
Step #4. Design A Business Plan
A comprehensive business plan allows one to reach its set goal and go beyond its limit. Outline the goal, decide the targeted audience, decide the Unique Selling Proposition, what services you want to offer, project finances and cost, you are ready to bear.
A well-drafted plan will sail you through the highest of tides and make the operations smooth. Also, this attracts several potential customers and stakeholders.
Step #5. Legal Aspects and Registration
Legal aspects are one such important affair to be taken care of. The entrepreneur to run the business smoothly must adhere to the legal requirements and registration.
Register the business by provisioning authentic documents and ensure compliance with all the legal formalities including tax regulations.
It is better to consult some legal expert to draft legal agreements, contracts, guidelines, and other services for the client.
Step #6. Building Connections
The Franchise Consultancy business is all about communication and connections. A wide network is required with different consultancy, financial experts, legal professionals, industry experts and different industries.
To make connections, entrepreneurs must attend different conferences, and seminars and meet people with different interests to understand both the business aspect and market aspects.
Step #7. Define The Services
Entrepreneurs must have a very clear and comprehensive list of services they will provide to their clients. These services include the feasibility study for franchise feasibility, drawing the business development plan, providing legal guidance to newbies, and looking for the market most suitable for the franchise and other support.
Also, franchise consultants must work according to the unique requirements of the clients, this will showcase their interest in the business and allow clients to see their sincerity. Moreover, mouth publicity works best in such businesses, so defined services with a tailor-made attitude will truly help the business.
Step #8. Creating a Digital Footprint
In this digitized world, the franchise consultancy business shouldn’t be left behind. Clients who are interested in business nowadays first surf the internet and start their talk through digital means.
So, develop a professional website and highlight your work, success stories, expertise, and client reviews. Along with this, highlighting the Unique Selling Proposition, using Search Engine Optimization tactics and Content Marketing will allow the website to be at the top of online search.
Step #9. Marketing and Product Establishment
Effective marketing is a well-known aspect of the business. It is a way to highlight the unique aspects of business and able to grab the attention of a targeted audience.
Marketing and branding include designing an appealing logo, colour schemes, tagline, and punchline. Develop brochures full of appealing designs and content, and present informative and interesting blog posts on websites that allow traffic to the website.
Step #10. Putting Reasonable Price Tag on Services
There are a lot of competitors in the market that provide the same services as you are providing. So, pricing is one of the factors clients focus on when they opt for a service. So, before deciding the price, one must research the prevailing market prices.
Determining the right pricing is essential because if one charges more than the market, then the client will move to the cheaper option and if one charges less than the market, then the client might doubt your credibility.
So, the pricing for services and the fee charged must be based on project and service as different clients demand different services and franchise consultancy service providers must tailor the services according to the client’s preferences.
Step #11. Keep your relationship with the client in good shape.
If franchise consultancy wants to sustain in business, they must maintain a healthy relationship with the client. Listen to their preference, communicate with them clearly, keep them in the loop in the process and finally give them personalized solutions.
Transparency helps in building trust, and this generates a genuine commitment between both parties, and this makes them reliable partners.
Step #12. Sustainability and Expansion
The franchise consultancy business must always plan its sustainability in advance. Once it gets its pace, it must consider the Scaling of operations. For that, it can hire consultants, expand its services, and try to collaborate with people from different backgrounds.
So, prepare the business model by focusing on its sustainability by providing the best quality of services.
Q.1. What is a Franchise Consultancy Service?
It’s a business that allows the business to offer expert advice and guidance to both franchisors (the ones who want to expand their business) and franchisees (one who is interested in investing in the brand established by others). In this process, they offer different services to make an easy road for business by planning for them for different stages.
Q.2. What are the skills essential to run a successful franchise consultancy?
It includes a bunch of skills like in-depth knowledge of the industry, understanding the business development, marketing strategies, legal formalities, financial prospects, effective communication skills, problem-solving skills, strong networking and more.
The growth of franchise business in India will be around USD 150 billion in the next five years and this provides an opportunity for the different businesses to enter the market. So, starting a franchise consultancy in 2023 presents an opportunity for entrepreneurs to tap into that business to enter the franchise industry.
With the right strategy, business plan, knowledge, and communication, both franchisors and franchisees will be able to achieve success. Success also depends on continuous innovation and that can happen by continuously reading the market forces.
So, the above-mentioned steps help in navigating the path of establishing a thriving franchise consultancy service in India in 2023. Get in touch with the experts at FranchiseBazar to know how to start a franchise consultancy service anywhere in India.
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