Franchising is one of the most promising and profitable ways of doing business. By purchasing a franchise of a well-known brand, you will receive ready-made operating technologies, a proven advertising strategy and manufacturer support.
It is necessary
- - start-up capital
- - premises
- - minimal experience in similar work
- - primary marketing research
Instructions
Step 1
Conduct an initial marketing research aimed at identifying which of the existing brands would be suitable for your city. For example, some well-known brands open only in million-plus cities, so buying their franchise is impossible in a small town. Or the brand is not promoted in Russia, so the profit from such a boutique under the franchise scheme will not be so high.
Step 2
Assess your chances of getting a franchise. As a rule, most franchisors have similar terms of cooperation. You must have start-up capital, have (property or lease) retail space in a good location, and have some experience in running a similar business. All this information you will need to enter in the manufacturer's questionnaire. When planning your future work, be prepared for the fact that you have to make regular deductions to the advertising budget, follow the detailed instructions of the franchisor, and, of course, deduct "royalties" - a set percentage of profits.
Step 3
Approve all the terms of cooperation with the franchisor. Discuss store design and marketing policies. Be sure to include a number of important issues that can be critical to the profitability of your business. For example, the possibility of discounts on collections of the last season, return of inventory balances, deferred payments. Choose your sales staff carefully. From now on, they will represent a well-known brand, form consumer opinion about it. Therefore, trainings for sellers, corporate culture, merchandising of goods - all these the sales staff should be fully proficient with.
Step 4
Try to establish a functional two-way communication with your franchisor. Track the dynamics of consumer demand, local problems, the effectiveness of marketing activities. State the results of your work and your own suggestions for development. Very often, stores of the same brand in different cities and countries look completely different. You should also find the characteristic features of doing business in your stores in order to optimize the collaboration.
