Franchise Business - How To
- Posted by admin
- 22 October 2013
The sheer availability of information in today’s technologically advanced age has led to a number of people choosing to go into business for themselves. More and more Singaporeans are interested in the registration and incorporation of their own franchises, and for good reason.
The Burdens of Entrepreneurism
Entrepreneurs have a rough way to go in most cases. There are financial burdens to be considered, the creation of a brand, the registration and incorporation of a brand new business name, and much more. Not everyone is cut out to be an entrepreneur, either, but many people have a good business-oriented mind and managerial skills that they are not using to their full potential. Choosing to open a franchise takes some of the worry out of opening a business since the brand and company has already been established. All the owner needs to do is ensure that the business runs smoothly and reflects upon the company’s established brand.
Franchise as a First Step
For many Singaporeans, the registration and incorporation of a franchise is only the first step in their careers. Some use this method to ‘test the entrepreneurial waters’ and determine whether or not they have what it takes to create their own business from the ground up. However, many franchisees are so successful that they open multiple franchises in the country in different locations in order to cater to a wider audience. For example, a first-time entrepreneur may bring in a single KFC, realize some success, and then choose to open two more locations in later years to increase his or her revenue.
Understanding Strengths and Weaknesses
While opening a franchise may mitigate some of the risks associated with the registration and incorporation of a completely new company – especially in the financial sense – not everyone is cut out to do it. Anyone who opens a new franchise in Singapore should understand that they will likely go into some debt, and they may not even be able to ‘break even’ until several years down the line. The people have to like, accept and enjoy the new franchise before it will make enough money to pay off debts and enjoy a moderate to high income.
Choosing a Franchisor
Finally, the first-time business owner will need to consider the availability of certain kinds of products and foods in Singapore before choosing a franchisor that will be successful. It is likely that the prospective franchise owner already has some ideas in mind, but it is important to actually contact these franchisors to get more information about availability, start-up costs and more. The potential owner needs to understand all of the complexity that will go into the initial set up and keeping the business on its feet once the initial start-up funds have been exhausted. Most franchisors have programs into place to help in this regard, too.
The registration and incorporation of a new brand and business can be too great a risk for many first time entrepreneurs, and this is where franchising can be a great alternative. Selling products or services under an established brand can help mitigate some risk and provide a better shot at success.