Buying a franchise business becomes one of the choices for people to start a business. However, the community must still make a mature plan so that the business can produce as expected.
Franchise business consultant Djoko Kurniawan notes there are 9 tips that need to be done if the public wants to start taking on a franchise business.
The following 9 tips for buying a Franchise / Franchise Business include:
Visit the franchise business headquarters
Djoko said prospective business people must ensure the existence of the targeted franchise business office. Because, it is needed to ensure the credibility of partners and ensure that the business really exists. “He wants to say how far you have to go,” he said when met at the franchise exhibition titled International Franchise License and Business Concept Expo and Conference at the Jakarta Convention Center, Sunday, June 7, 2019.
Check one outlet that is already operating
Prospective business people must ascertain whether or not the outlets that are operating are in accordance with the business analysis offered. If it turns out to be inappropriate, said Djoko, it should not be taken. “For example, the sushi business promises to sell one thousand plates a day, you need to observe whether it is true or not.” he said
Also read: 3 Keys to Success in Culinary Franchise Business
The way to observe it, according to him, is quite simple, namely by visiting one of the outlets and dining there while looking at the situation. The reason is Djoko said many business people on paper are profitable but in reality, they are not. So, the impact is detrimental to many parties.
Don’t be shy about asking
Prospective entrepreneurs may not immediately believe what is offered by potential partners. So, Djoko suggested they ask in detail before taking up the franchise. “You have to ask everything, a to z, you have to nag, keep asking,” he said.
Make sure the franchiser’s track record
with the ease of technology, the public can easily check the track record of potential franchise partners before starting cooperation. The trick is to search and see it on social media. True or not, and what kind of activities. The reason is, fortunately, the loss of business also depends on it.
Don’t be tempted by overpromise offer and keep working hard
According to Djoko, currently, there are many franchisers who offer auto-pilot business, aka profit, without the need to be controlled by entrepreneurs. He said prospective entrepreneurs should not be stuck with the offer.
“Don’t be tempted by sweet words in which the person says they must be lucky or autopilot,” he said. Instead, he reminded that the business definitely needs hard work. “It takes effort, without effort it will not work.”
SOP (Operating System and Procedure)
SOP is one of the important factors that must be considered when buying a franchise business because this SOP makes a franchise business run smoothly and sustainably. Without clear and detailed SOPs, chances are that you will walk without guidance from the franchisor.
Use of Information Technology POS system
Currently, the information system to record stores activities, stalls, and counters have been easier especially by only using an android device. Smart cashier application system that can run on Android devices at a very affordable cost even for free is now available and can be used immediately in a short time. It is important for you to use the recording of sales transactions, stock positions, store costs in a system so that you as an owner can easily monitor the performance of your store, anytime and anywhere. Especially if you have more than 1 (one) store.
Pay attention to the funds owned
Prospective business people must pay attention to the amount of capital prepared. This will determine how much the franchise business can buy. However, he suggested that not doing a franchise business if the capital is too small. “If it’s really small like a tea franchise, I suggest not. What are you doing? It’s better to make the franchise money into four booths directly, “he said.
Ready to lose money
The final tip from Djoko is that prospective business people are ready to lose money when they have decided on a franchise or franchise business. For example, when the capital prepared is Rp. 10 million, then he must be prepared to get the money and not return it. “If you are not willing, don’t, business is talking about risk.”
Thus 9 tips that need to be done to buy a Franchise Business / Franchise to help people who are trying to start a business, hopefully, this article is useful.
Djoko Kurniawan | Konsultan Bisnis Franchise, Marketing & Service Excellence