Franchise and Business Opportunities: The First Step to Building a Business, Franchise business opportunities are on the rise. Why do we need to know this business model now? The answer is because this franchise concept is getting bigger and is in demand by the wider community. According to estimates, franchise stalls will continue to increase by 10 to 15%. This estimate is not wrong, we can easily find franchise businesses scattered in strategic places. Now we know Indomaret, Alfamart, McDonald’s, KFC, and K-24 Pharmacies that are easy to find. These brands have large and regular customers.

These franchises are not only a business, but also a culture and lifestyle of the younger generation. We can take the example of the closure of McDonald Sarinah (Jakarta) in May 2020. The first fast food restaurant in Indonesia decided to stop its business activities. Many people came to immortalize the closure because the place holds the ‘memory’ of many people.

The power of a franchise business is not limited to product sales but a lifestyle tailored to the millennial generation. There are many types of franchise businesses that can be tried, not just limited to eating places. This business opportunity is what you can seriously work on. However, it’s a good idea to follow basic business development guidelines so you don’t take the wrong step. Many franchise businesses with big brands have closed due to immature preparation. Therefore, this article will provide basic guidelines for you.

Table of Contents

Taking Franchise Business Opportunities
Terms in Franchise Business
Advantages of Franchise Business
Weaknesses of Franchise Business
Starting a Franchise Business Opportunity

1. Prepare yourself as an entrepreneur
2. Find a suitable business
3. Analyze the Market
4. Facing Challenges and Risks
   Principles in Franchise Business Marketing:
5. Know the customer and the market.
6. Product display is a marketing tool.
7. Promote franchise business products
8. Do good service
9. Build a franchise business website
10. Build a testimonial system
    Cover
    Taking Franchise Business Opportunities
    Terms in Franchise Business
    Before starting, let’s get to know the terms that are widely used in this business.
11. Franchisor = the franchisor (we call the first party) or a business entity or individual who grants the right to the second party to use and utilize the rights to a brand and also materials related to the brand. Franchisor is the first party.
12. Franchisee = the party that uses the brand name of the franchisor for its business.
13. Royalty Fee = the cost of sharing rights to the brand between the first party (franchisor) and the second party. This division is the result of an agreement from both parties. You have to be careful, because profit or loss, the franchise is obliged to pay a royalty fee to the franchisor. This fee is paid after the business runs.
14. Franchise Fee = initial fee that must be submitted to the franchisor before starting a franchise business.
15. Revenue = gross revenue or gross profit from the business that has not been deducted by the cost of expenses
16. Supplier: The party that provides raw materials to be processed into finished or semi-finished products.
17. Profit: Profit, or also known as net income.

Advantages of Franchise Business

It’s good to further understand the advantages of this business model. In the paragraph above you have been given a little overview of the advantages of developing a franchise.

1. Speed of business expansion
   What’s interesting about franchising is that you can set up this business anywhere, including abroad. The breadth of franchise reach is the main advantage of this business model.
2. You don’t need to start from scratch
   The principle of franchising is that you continue the business of an established brand that has proven successful. In this case, you must be smart to do research or research which businesses are franchiseable (have the potential to become a franchise). In addition, the center will usually help supervise when you start doing business.
3. Franchisor Support
   Worried when you want to start? No need to be afraid because the franchisor will guide and support your business. You just need to run this business with direction from the first party.

Weaknesses of Franchise Business

1. Full Control of the Franchisor
   Do you want to innovate? If so, the final decision is in the hands of the first party. Not necessarily the franchisor agrees with your proposal, because they are the ones who have full control.
2. Business Reputation is Easily Shaken
   The principle of franchising is to expand the brand business as much as possible. If one franchise has a bad reputation, it is likely to affect the reputation of the company brand. You have to be careful in this case.

Starting a Franchise Business Opportunity

1. Prepare yourself as an entrepreneur
   Franchise businesses cannot use the principle of office hours that are determined eight hours a day. Therefore, there are several things that you must make a commitment to when you want to start this business.
2. Find a Suitable Business
   You must be careful when determining the franchise business. No need to rush, if you have trouble you can look for references from magazines like Info Franchise Indonesia. If the franchisor exaggerates the benefits of its trademark, you can be wary. Carefulness in finding a business that fits the criteria will help grow your business.
3. Market Analysis
   Determining the location needs market analysis. Is the place of your business crowded with people? Is there a potential for certain hours of the location to be crowded? These questions should arise when conducting a market analysis. The analysis does not stop at the place, but must also extend to the product as well.
4. Facing Challenges and Risks
   Are you ready to face the challenges and risks that exist? If not, make the anticipation yes, so that you don’t have too much trouble if bad things happen. Ask the franchisor for help to analyze business risks so you don’t get into trouble.

Principles in Franchise Business Marketing:

1. Know the customer and the market.
   Make sure that the location and consumers you are aiming for are clear. No business succeeds without seeing the extent of market demand for your business. Therefore, do serious research.
2. Product display is a marketing tool.
   In a business filled with competition, franchisees must consider the visualization of products or services to attract public attention. That’s why it’s important to think about how the packaging of the products you sell looks.
3. Promote franchise business products
   You can use discounts, special social media opened under your business name, or use TV and radio media. Apart from competing with other business brands, you also compete with fellow brands.
4. Do service well
   You must have a strategy to make regular customers. How do you do that? By using member cards with special discounts, friendly service, or other special offers.
5. Build a franchise business website
   This site will contain discounts on certain days, promos for a product, new items, contacts that can be contacted, and others. This will make it easier for potential customers who have busy schedules. In addition, you can also use delivery services, so this site will be very helpful.
6. Build a testimonial system
   How can you get feedback from your customers? One way is by using a testimonial system. The basis of this system is twofold: are customers satisfied or dissatisfied with your business services? Evaluate every month using this data. That way you can make improvements.

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Closing

That’s a little knowledge that you should know when starting this business. It is necessary to do serious market research, so that in the future your business will be more developed. Well, does this article provide enlightenment about the franchise business? If so, you can share it with other friends so that the idea of a franchise business gets bigger.

Now, are you going to take this franchise business opportunity?