Making a new brand one of the most recognizable is extremely difficult and usually takes years. A lot of money is spent on promotion in the form of advertising on various resources, but in the end, the invested funds do not always give the desired result. How to avoid a failure in brand promotion? The easiest way is to start working under someone else's brand.
Action plan
First you need to know everything about the franchise. It is impossible to simply start the production of any product under an already well-known trademark, since it is illegal. But a franchise is just the legal method of running a local business under someone else's brand. The advantages of starting a business under a franchise scheme are as follows:
- You can use the knowledge and ideas of successful entrepreneurs.
- The company that has entered into a franchise agreement always monitors the processes in the new production, so it becomes much more comfortable to work.
- The same firm often tries to improve the skills of local enterprises, which is convenient for business development.
- In the future, you can reach a higher level of entrepreneurial activity.
How to organize the work?
So, in order to legitimately promote a local business under a popular brand, it is necessary to conclude a franchise agreement with the selected company and buy a franchise. Typically, firms that are willing to sell it advertise in newspapers or magazines specializing in the topic of business. You can also contact similar industries directly. Next, you should discuss with their managers questions about the types of services or products they produce, about training opportunities or the availability of training materials, about promotional measures and sales promotion.
Then you need to deal with the premises and finances. The place of work is sometimes provided by the parent company, in other cases you have to look through ads or contact real estate agencies. You can finance production either with your own funds or using a bank loan. The latter option involves drawing up a high-quality business plan, which will include:
- Sales forecasts for the next year.
- Approximate expenses for the sale of goods.
- Overheads.
- Profit.
- Required capital investments.
- Sales volume forecast.
Thus, working under a foreign brand has its advantages and disadvantages, the main thing is to study the law in advance and prepare all the necessary documents and reports.
