More About Franchise Business, Here's What You Must Understand!

Do you want to try to rotate the money you currently have to make a profit? If yes, then business will be the answer. Various types of businesses that exist today can be interesting options, one of which is a franchise business.

The franchise business itself was booming a few years ago, and this business model has managed to maintain its popularity until now. More and more brands are allowing you to be a part of it by opening a franchise.

Franchising itself can be understood as a business in which the owner gives permission to the licensee to operate the business in a particular location. To get the license, you must pay a certain amount of royalties to the business owner to rent the produk brand name.

Also Read: Want to TryWant to Try the Laundry Business? Read this article first!

Getting interested? Here Are 7 Getting Started

To start your own franchise business is actually not a difficult thing, but you must still be careful and thorough. Some ways to start this business are as follows.

1. Important, Do Your Research

Research is always an important thing to do before starting a business, including this franchise business. Some things that must be researched are the products and services to be sold, license fees, prospects, competitors, and market potential in the desired location.

2. Develop a Business Plan

After getting complete data about the product, license price, prospects, competitors, and existing market potential, you can start compiling a business plan that will be executed. Armed with these complete data, a business plan can be prepared properly and produce a clear framework for each part of the business and strategy later.

3. Contact the Franchise, and Buy the License

The franchisor has a contract that will later be given to you when making a purchase. Do not rush to give signatures before carefully reading the content of the contract. So in the future you don't feel anything is wrong, when in fact all the conditions are in the contract given.

Make a license purchase transaction if it is really understood, and you officially have permission to run this franchise business that you want.

4. Business Entity Establishment

Even though you officially have the license, you still have to go through several stages. Next you will form a business entity, because different business entities are needed based on the overall structure.

5. Looking for a Strategic Location

The next step you can start looking for a strategic location that will be where you do business. This business location must meet the criteria you need to run a business, ranging from market potential support, technical support, and also licensing.

6. Employee Recruitment

Everything is ready and now it's time for you to hire the necessary employees. Don't carelessly look for employees, so that the business you run is really optimal and doesn't encounter problems in the future.

7. Happy Business!

The last stage is the opening of a franchise business that you have prepared. Businesses can get up and running with all the systems and SOPs provided, and welcome as an entrepreneur!

Also Read: 5 Stages of Developing a Business Plan Before Entering the Business World

Widely in demand, it turns out that these are 7 advantages

Each type of business has its own advantages and challenges. In the franchise model, at least there are quite a lot of advantages that you can get.

It can be started quickly, because there is already a system that you can use to run this business. You only need to do training on the employees you have
Having a professional work partner, the franchise owner is an entrepreneur who is already professional in his field. You can get a lot of knowledge, and this will facilitate the business you have
Don't bother branding, because the brand is well known to the public, you don't need much effort for branding matters which are usually a big effort.
Full support from the franchisor, you will also get training, clear SOPs that help operations to marketing matters.
The benefits of promotional media, yep, you don't need to be confused about promotional media matters because usually the franchisor already has a marketing strategy for his brand
Financial management is mature, because the franchise business basically already has a clear system to financial affairs, it can be said that you only need to install the system and understand it
The success rate is high, it cannot be beaten flat and absolutely this business will achieve success. But ideally a business with a mature system will be easier to achieve success than starting a business from scratch

In addition, here are a few tips for managing a franchise business to be successful

In managing this franchise business that you have, the tips applied may not be much different from other types of businesses.

Don't be tempted by cheap license package prices, but you should look at all the details of the files and business packages provided. Do not let you be scratched by affordable price offers but business prospects and targets do not make sense
Have a clear goal, not just fill your spare time, in doing business you must also have a clear goal. Set personal goals, so you can continue to grow towards those goals
Not in a hurry, even though this business system is mature, you still need time to be able to really settle and make this business profitable. Enjoy the process, and don't rush to quit
Proper financial planning, there is indeed a clear financial system in a franchise. But you are also required to have clear and measurable business financial management and planning so that you have a clear reference to the success or failure of this business
Business insurance will bring many benefits, yep, providing insurance to the business you have will also bring many benefits in the future. In unwanted and unexpected conditions, you can cut financial losses that arise because you can file a claim as long as everything is in accordance with the terms and conditions of the applicable policy

Also Read: 25 Home Business Ideas with Promising Profits!

So after reading the explanation of how to get started, benefits, and tips on optimizing it, are you even more interested? Or are you still feeling confused about this business concept? If you feel still confused, you can easily consult a financial expert you trust, or directly find information about the franchise you want.

But if you are already steady in starting a franchise business, you can quickly execute all the steps. Complete this business with the right insurance, as offered by AXA Insurance Indonesia through SmartBusiness Insurance with business interruption, personal accident and long-term hospitalization benefits*.Many benefits can be obtained if unwanted things happen, so that the losses you experience can be suppressed. Contact our customer service immediately, and get complete information about this insurance!

* Terms and Conditions according to SmartBusiness Insurance policy

*Promo code is valid for direct purchase on AXA myPage until December 31, 2023

Reference:

https://info.populix.co/articles/tips-memulai-bisnis-franchise/
https://www.jurnal.id/id/blog/6-tips-sukses-bisnis-franchise-yang-wajib-diketahui/
https://www.bizhare.id/media/bisnis/cara-memulai-bisnis-franchise-pemula
https://www.jurnal.id/id/blog/keuntungan-memulai-bisnis-waralaba-atau-franchise/
https://smesta.kemenkopukm.go.id/news/keunggulan-sistem-waralaba-untuk-ekspansi-bisnis
https://www.hadirr.com/blog/tips-cara-mengelola-usaha-franchise/
https://www.finansialku.com/mengelola-bisnis-waralaba-berhasil/