Yesterday I was talking to a friend about a franchise/ dealership deal for my gift shop.
She was my classmate in university (we took up Business Administration and our major – Marketing – together!) and she said she wanted to buy the dealership because she wants to invest her money well.
Thing is, she’s based overseas so she wanted an onsite partner in her city here in the Philippines.
Her partner didn’t want to buy the dealership/ franchise.
Says he thinks the money is “wasted” and should just be used to buy more stocks.
Meaning, more inventory. And probably on one hand, it’s true. They can buy more inventory…but inventory is merely a small — and could even be irrelevant — part of starting a business. 🙂
A few things to note so I can turn this into a learning experience:
✅.What every franchise deal has is mostly NOT inventory. It is years and years of trial-and-error, expertise, getting your market-message-medium match right, things one would have done if they can start all over again. You are buying TIME that you cannot afford to lose. A resource you cannot replace, unlike money, or inventory.
✅Every franchise deal is not “starting from scratch”. You are starting with a working system, a proven process, and most of all, profitable strategies. This is what you are MOSTLY paying for.
✅Statistics show that 30-50% of businesses fail within the first 2 years. A whopping 90% of franchise businesses succeed within the same time. There are reasons for that.
✅Whatever you think of doing in the business– marketing, inventory management, human resource, service recovery, social media marketing…. a franchisor will always know how to do it better, faster, more cost-effective, more efficiently, and with better results-per-spend.
✅There is an undeniable benefit to starting alongside a strong and seasoned brand. Builds more prospect confidence, and makes you close your new clients better.
I have consulted with many small business owners for scaling, franchise/ dealership, expansion, and they all share the same sentiments.
If you are not THAT business savvy and you don’t want to start from scratch…
If you do not like the idea of distributorship, MLM, or direct selling…
If you want to own a REAL business that you can replicate and scale…
A franchise business might be best for you. ❤
After all, why stumble in the dark when one offers you access to the light switch? 😊
P.S. My gift shop is still open for franchise for some locations. The taken locations are Zamboanga, Cebu city, Cavite, Quezon City, Paranaque, Kidapawan and Cotabato City. If you are a city with at least 200k population, you have a great chance at winning this. Message me on my personal FB account to apply.