Whenever a company is doing well by providing good quality products and valuable services, then franchising is the right decision that they should take. It will not only help the businesses to increase, but it will also allow other customers to avail the services that you are providing. If your brand already has a good name in the industry, then franchising will help you to earn better profits and gain potential customers, and at the same time, you will be expanding your brand from a huge distance.

Operating and owning all the outlets of your business can be very hectic, and it will also reduce the efficiency of the services. The quality of the services must not fall, and that is when franchising can help you, as it is an effective business model that will provide your business with the opportunity to bloom in several places. This article focuses on how to franchise your business.

Even the entrepreneurs can have their business franchise to reach a greater audience and create a brand name in the competitive market. You can also provide opportunities for the entrepreneur to use your brand for running different establishments. If you are wondering how to franchise your startup in India, then these steps will be very helpful.

Tips to franchise your business

Research

Before you start franchising, you should know what it stands for and what are the business prospects that it comes with. You will have to analyze different sources and research on the location and target consumers before you are opting for franchising the business. Unlike the other business, the franchise business will be operated in a different manner, and that is why one needs to have proper knowledge regarding this business model. It takes a lot of efforts and commitment to franchising a company because it comes with additional cost and maintenance. The coat that you will have to pay for franchising is quite overwhelming. Hence, it is very crucial to concentrate on the development of the brand and the networks that you are having. Your brand must be competitive and should sell quality services and product in order to flourish in any place. Therefore, this 2019, start planning on creating a franchise.

Agreement

When you will be franchising your business, you will need a franchise agreement, which will be made between the franchisees and you to maintain transparency. It must be made by maintaining all the legal procedures, and it should not depend on the location of the franchise. One must not provide any sort of negotiation to the franchisees related to the credit, territory or any other item, which will be handled in the addendum. You must talk to the franchise and see what are their expectations from your business and how your brand is going to help them in gaining potential customers. If your brand is not a reputed one, then a franchisee will have to implement much more effort to build your business at their location. It is an important procedure of how to franchise your business.

FDD

This information or document will be provided to the potential franchisees, and it will contain all the minute details regarding the company and the key information related to your business and sales figures as well. You will have to keep on updating this document every year. You will also be subjected to several complications if your process is not legally sound or is not having transparency, which the franchisee may expect from your company. It is mandatory in the journey of how to franchise your business.

Fees of the franchise

The fees of the franchise can be a hefty amount, so you need to analyze it properly. By looking into the gross revenue, the profit will be shared between the company owner and the franchisee. Ensure that you are well transparent with the person who will be representing your brand and outlet and it can also happen that the franchisee will have to pay a royalty or franchise fee in the initial stages as a gesture of loyalty. Have the capital ready before thinking about how to franchise your business.

Experimenting before expanding

It is essential for a person to evaluate the success rate of the business before they are thinking of investing in any other places. It will help you to stay away from complicacy. The process of a franchise is very important, and one must do a proper study on the areas. You cannot operate a franchise from a place that is not having a demand for the product or service that you are providing. Before you make any business plan make sure it is a smart decision. You will need the right set of people who will guide you if you are new to this and make sure you are not ignoring any errors because it can hinder your growth in the latter stages. This tip is essential if you are wondering how to franchise your business.

Take help from professionals

One must not endure the journey of the franchise alone. Before you start the franchise, you need to analyze the location, and you need a person who will take the responsibility of checking all the factors that can affect the business growth of that place, and at the same time, you need some other people who will help you to take decision-related to business. By seeking help from professionals, you will be able to regulate your business and other operations optimally. All the guidance that you will need during this time must come from people who have experience in this field. A perfect team will help you to grow the business systematically and bring success. List out the things that you will need for creating a franchise.

Have marketing strategy

It is very important to have a proper marketing strategy if you are franchising your business because you need to market the products in order to make it reach your consumer and at the same time look at the perspective of the business. Only if you can maintain a healthy balance between these two things then only you will be able to flourish your business.

Budgeting and marketing are the two things that should not be ignored, and you need to spread awareness related to the brand and do proper marketing; otherwise, successful franchising is not possible. To understand the entire business model, it is very important to have a proper understanding related to the franchise, and you need successful franchisee for becoming the successful franchisor in the venture of how to franchise your business.

Attorney

It is true that you need some expert advice and in the process of franchising you will need an attorney to deal with the legal procedures and have all the franchise disclosure document prepared. A lawyer will help you to deal with the entire process of setting the price, creating the franchise agreement and will help in including laws that will help in protecting the intellectual property. Ask their advice on how to franchise your business.

Be picky

When it comes to picking the franchisees, it is very important to be picky. You will need the right set of people, and you can analyze it by looking into the capital that each person has to come into the business bond with you. They are going to represent you so make sure you are joining hands with people who will help in protecting and growing your brand. Make sure you are having the interview process and list out the things that can be a deal breaker.

Temper expectations

One will have to analyze franchise with properly because they will be building a new franchising network and at the same time will be operating their other businesses. It is very important to know that when you are launching the new franchise that you will be operating a new business, and you will also be risking your capital.

These few things will help you with the initial process of how to franchise your business. You must also have the clarity to know whether you are ready for franchising the business. If your business is already popular in the market, then the process of franchising will not be difficult, but if you are an entrepreneur where your brand awareness is not much compared to other brands, then you will have to reconsider the entire process.

Make sure you are visiting the location and inspecting it properly before providing the franchise there. It is always beneficial to open your franchise at a place that is crowded and is a place where people visit for purchasing other product as well. Even if you are operating the business from a distance, you need to ensure that it is working optimally and is not compromising your brand name.

Every franchise that you are opening will be equally important and will represent your brand. If you are confused with how to open a franchise, then these tips will help you with the procedure.

If you can start your franchising venture successfully, then your business is going to bloom very rapidly. It will not only give you great exposure, but you will be able to get a lot of target audience that will help in the overall expansion of your brand.

Keep on communicating to avoid miscommunication or complications in the entire business journey of how to franchise your business. The quality of the product and services must not fall, and that is why you need to choose the right set of people who will be representing your brand. Follow all the steps for creating a franchise properly.

The Micro, Small and Medium Enterprise sector has always formed an important part of Indian Economy. This sector is also known for its innovations, technological advancements and providing jobs to many people. The Union Budget 2019, was presented by Piyush Goyal, India’s Finance Minister in February. This year’s Union budget offers lots of advantages to MSMEs. Business can achieve new heights of success by making optimum utilization of the benefits Of Feb Union Budget 2019 For MSME Sector. The budget shows that the government has a clear aim of strengthening the backbone of the Indian economy, i.e., the MSME sector.

3 major benefits of Feb Union Budget 2019 For MSME Sector

Tax Rebate

The most important change brought in the MSME sector is in the field of the tax rebate. Earlier the limit for individual taxpayers used to be 2.5 lakhs. In 2019 budget, this limit has increased to 5 lakhs. Individual with annual an annual income of 6.5 lakhs can also take benefit of this limit provided they make investments in provident funds, etc.

Under tax rebate benefits, the government has made positive changes in terms of interest earned on funds deposited with posit office or banks. The limit has increased from 10,000 to 40,000.

Instant loan

Another important benefit that the MSME business can use to expand their business is the launch of ‘instant loan scheme’. As per this, the MSME can get a loan up to one crore within 59 minutes. This would be highly beneficial for MSME startups. A further rebate of 2% on the interest of loan amount would be given to MSME’s who have GS-registration.

Capital Gain TAX

The exemption limit of Capital Gain Tax has been increased to the amount of 2 crores. Moreover, Piyush Goyal has also made an announcement regarding the second house’s notional rent. He said that as per new budget the notional rent in such case would be tax-free. He also announced that emphasis would be given on promoting local businesses. For this, all the public sector enterprises would be covered by GEM platforms.

Another major advantage of Union Budget 2019 for MSME Sector include the announcement of submission of quarterly returns for business with an annual turnover of less than 5 crores.

Other major benefits of Feb Union Budget 2019

• The launch of Pradhan Mantri KisanSammal Nidhi Yojna: Under this scheme, an annual amount of rs.6000 will be given to all the farmers of India, who own less than 2 hectares of land.

Under this Union Budget, the government has announced rebate for the farmers who have become a victim of natural calamities. Such farmers would be given a subversion of 3% on the interest of loan taken by them.

• Farmers in animal husbandry would also be given a subversion of 2% on interest.
• Developing 1 lakh digital villages in next 5 years.
• Increase in the ESI cover limit.

Besides the above-mentioned benefits of Feb Union Budget 2019 For MSME Sector, Finance Minister Piyush Goyal has also announced that for any government project, 25% of sourcing would be done from MSMEs. It is also announced that out of this 25%, 3% would be procured from women entrepreneurs.

You have an idea, and you are thinking to work on that idea and planning to start a new business, then this is the right time.  This is an era of technological breakthroughs. Moreover, if your idea shows potential and you have the vision to support, finding the source of capital would not be difficult for you. The challenges faced by the earlier generation were entirely different as compared to the new generation. Digitalization has opened up numerous gates of opportunities for attaining entrepreneurship. As a result, anyone who has the capabilities to convert these opportunities to generate revenues is very much eligible to start a successful business.

If you are planning to start a new venture, then there are few steps which you may need to follow to start a successful business in the year 2019.

Steps to start a successful startup

Conduct thorough research: An idea forms a base for any business. If you have thought about an idea then before starting its implementation, you should check its potential. This means you need to check if your product or service has any demand in the market or not. If yes, then you need to find answers to the questions like which is your target segment, who all are your competitors, etc. 

Make a business plan

Planning plays a vital role in establishing a business. Depending on the type of business you need to select a business plan. If you are planning to start a new venture, it is essential that you should make a detailed business plan which goes with your vision and states the process you need to follow to achieve success.

Plan Finances

To start any business, you need to have an initial investment amount. Planning of your finances is very crucial. You need to calculate the amount you need to start up your business along with the amount which you need to run your business for a year. Once calculated, look out for the ways to funds for your venture.

Choose the structure of your business

There are three major business structures for small and medium scale business. These are

• Proprietorship,
• Partnership
• LLC.
• Corporation

Select a name for your Business and get it registered

Complete all the paperwork including getting a license and other business-related permits.

Select an appropriate location for your Business

Be careful while setting up your office. Select whether you want to buy the location or go for a lease. You have to take decisions regarding office location, equipment, etc.

Recruit appropriate team and get them ready.

Promotion

Once the business is set up and you have started selling your product or service, it’s time to work on promoting your products and services.

If you are planning to start a new venture in 2019, then there are few success mantras which you need to follow. Planning is a significant part of the entire process of setting up a business. However, if you want to stand out in this competitive market and make your business a huge success, then you need something more.

Clear Vision

For anyone who is planning to start a new venture, having a clear vision is very important. Vision provides you a clear understanding of your long-term goals. Entrepreneurs with clear goals always remain motivated as they work their best to achieve their targets. You can plan your business on the basis of your vision, and together they lay a solid foundation for your venture.

Long-term approach

Having a vision is not sufficient. You need to have a long-term strategy which can help you in achieving those goals. You need to find answers for all the “how” and “what” of your business. Today’s market is not stable. Innovation and change in technology play a very important role. With a long-term approach, you will be prepared to handle upcoming changes, and this will further keep you much ahead of your competitors. 

Commitment

Starting a new venture is not the most difficult part of the entrepreneurship. Being committed to your business is the most challenging part. Most of the new ventures fail as the owner becomes careless once the business starts giving profits. When you decide to run your own venture, remember that you have to work on it 24/7. You need to keep working on new ideas, find innovative ways to increase productivity, be ready to face all kinds of problems and try to find their solutions. Remember ” A successful entrepreneur always lives on the edge.”

Dedication and passion

For anyone, who is planning to start a new venture, dedication and passion are very important. Starting a new venture can be a life-changing decision for many individuals. Both these qualities keep a person self-motivated.  An entrepreneur who works with dedication and is passionate to take the business to new heights would never give up. Such an entrepreneur will give their 100% to achieve their goals. Moreover, these two qualities help an entrepreneur to face various challenges that may come while running the business.

Networking

Having a strong network is very important to run any kind of business.  Good and strong network help you in running your business in many ways. Your networks can give you a true insight of the market. They can further help you getting funds, finding new customers, alliances and can act a very important source of all market-related information.

Open to take risks

When you plan to start a successful startup, be ready to take risks. Starting and running a new venture is not that easy. Various difficulties and new challenges will keep on coming in your way of achieving success. You should have the willingness to take a risk and find new ways to overcome these challenges and difficulties.

Keep your customers’ first

Always remember your customer is the key to success. The main aim of any establishment is to earn more revenue. Revenue can be generated only through customers. Hence always keep your customers in the centre and plan your business strategies accordingly.

Take good care of your employees

Success of any business is the result of effective teamwork. Always make your employees part of your vision and goals. They are the only one who can help you in achieving them successfully. Running a new business is a road full of speed breakers. You need to be patient and should be prepared to face all kinds of difficulties. You need to have the vision to convert these difficulties and challenges into new and potential opportunities.