Basic Characteristics of a Good Business Franchise

While it is true that business franchise is considered to be one of the most effective and reliable ways of doing business towards financial prosperity in life, one cannot ignore the fact that deciding which type of business franchise to venture into is very vital. Any franchisee has the main objective of ensuring the growth of the business at the optimum level with maximum profitability.

Whether the franchisee is a veteran or a neophyte in the field of entrepreneurship, choosing the right or appropriate franchise requires careful consideration of its characteristics.

Is the concept fresh and unique? Does the considered creativity have potential for expansion? Based on the observation made, customers always yearn for something new, one that eventually suits their respective needs, desires or standards. For example, of the two franchises that sell the same product, the one with a fresher and more creative presentation always looks attractive and tempting.

Consider the company’s ability to make a profit. It is important to collect meaningful data on the state of progress of the company for a certain period of time or, if possible, for the last few years of its operation. Sometimes, to come up with a fresher concept, the cost incurred is relatively high, putting the business in a fifty-fifty position in terms of profitability. Likewise, achieving profitability also requires a good marketing strategy, which is capable of expanding and strengthening its customer base.

A functional and tidy operating system. Any effort that doesn’t apply or follow a set of procedures usually falls apart, resulting in a backlog of work and assorted problems. In short, the success of the company is also based on the efficiency of its operating system, where everything runs smoothly and in an orderly manner, exceeds deadlines and responds promptly and quickly to the demands of its clientele.

Provision of training and education. A good training and education package is one that is easy to understand and implement. By the time you start sailing, everyone involved in the operation must have fully acquired and familiarized themselves with the knowledge necessary to deliver quality goods and services.

Another important feature is an efficient profit margin built into the concept. This is similar to an electric power company that has a standby generator to be used at any time, in the event of a power failure at the main source or plant. This aspect guarantees the lucrative return of the investment of the franchisee.

The last but not least is the cost of the franchise. It must be affordable so that more aspiring entrepreneurs can take advantage of it. For any newbie in this field, buying an expensive franchise is taking risks.

An old adage says: “The journey of a thousand miles begins with a single step.” In the same way, the key to the success of a commercial franchise is based on a well-directed, carefully studied and wisely planned decision.