Thinking of your first franchise business? Heed these tips from franchising experts
Are you on the lookout for the hottest new franchise opportunities? This year is as good a time as any to jump in and experience running your own small business. We ask industry experts on the current trends in franchising at the recently concluded 17th Filipino Franchise & Business Expo organized by the Association of the Filipino Franchisers Inc. (AFFI). Here are ideas to help you jumpstart that franchise business.
Start small with food carts.
“Small businesses account for 99.66 percent of all businesses in the country,” says Marie-Joyce Co Yu, president of AFFI as well as owner and CEO of True Blends Tea and Coffee and Chops to Go. “So we are looking forward to more small carts and small businesses to grow big and expand this year.”
Food carts have a low entry cost and are the easiest to manage personnel-wise, with only one or two employees to handle. Franchising also means that the basic infrastructure like support, training, and utilities are already figured out, so you can focus on actually running the business.
“For entrepreneurs who want to get started and don’t have enough capital, they can start with a food cart,” says Joey Concepcion, Presidential Adviser for Entrepreneurship, founder of Go Negosyo, and chairperson of the ASEAN Business Advisory Council Philippine. To give you an idea: At the recent Filipino Franchise & Business Expo, franchise packages of dimsum stalls range from P50,000 to P250,000, while milk tea and shawarma franchises average at about P200,000 to P300,000.
Partner with trusted brands.
Selecting a business type to get into, whether it be food, pharmacy, or water refilling, can already be a daunting task. So how do you figure out which business is right for you? Do you join the current yellow fever craze of mango stalls now sprouting left and right? Or do you go the tried-and-tested route of already established brands?
Concepcion advises, “Look at the product of the concept [these small businesses] are going into. If they’re present in most of the big malls, then that’s a good sign.”
When exploring your options with a franchiser, remember that you’re getting to know them as much as they’re getting to know you. Don’t hesitate to ask questions—after all, franchising is a two-way support system.
Find your passion
Knowing a product that you love and believe in, whether it be milk tea, French fries, or shawarma, is key in choosing which franchise business you should put your money in. “They have to find what their passion is,” Co-Yu encourages entrepreneurs. “They have to start small, then dream big.”
For more tips on putting up your own business, check out Globe myBusiness Academy.
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