Many OFWs who are working hard abroad away from their families are saving money for their retirement and are considering putting up a business to continue earning while they are back home to their families and in case they opt not to go back abroad to work. There are many business opportunities to choose from which require a not so big capital. Each of these business prospects promises good income but one has to consider that having a capital to start with is not enough. It entails commitment, good management with hard work, sustainability, and of course patience while waiting for the return of investment which is generally calculated to come after five years.
From a survey, these are the top five business opportunities (they are not arranged in order): e-commerce or popularly known as online selling, franchising, restaurant/food retail, selling e-load/starting a payment center, and water refilling. These are the emerging powerful business ideas that may inspire any OFW or anyone who is interested to start a business with low capital.
In this post, I would like to particularly focus on franchising as one of the most promising businesses that I have observed lately. I did a research on this topic to be able to come up with a great one to share with you so that when you decide to have a franchise you can just count on some tips that I will discuss here. GMA’s interview with Rommel Juan, owner of the Binalot Chain of restaurants advised OFWs that franchising is a good option to invest their money because it has more success rate as they will be operating a proven business already as opposed to a start-up one. Here are five tips for anyone who is eyeing on franchising a business:
- Buy a franchise that you are interested with, not just one that is trending
This is tantamount to the popular saying that you can only do a job well and become successful with it if you love and enjoy it. Consider the fact that franchise is a long-term commitment and that you will be spending most of your time dealing with it. It is necessary then that you invest in something that you believe in and have the passion to do it. When you love what you do, you can think of ways to improve it and this will determine the sustainability of your business. For example, if your passion is on clothing, then it is good to buy a clothing line franchise. If your passion is food and beverage, it is great to buy a food and beverage franchise. This way, you can devote your time to do it. Always remember that the success of anything we do is 100% commitment and consistency, if it is lesser then there is a risk of failure.
- Be the manager, not just the financer
It is very important that you manage your own business. If you are thinking to assign a family member like your brother/sister, wife or children, or your best friend to manage your business, be sure that they will be part of choosing what franchise to buy because it is a requirement that they, too, love the business to commit to it. They need to participate in the process from choosing what franchise to buy, scouting for a location, applying for business permit, negotiating, and planning. They need to experience all these things to feel ownership and concern for the business. This way, they will do their best to protect it and make it prosper.
- Do your research, interview existing franchisees
Juan advises OFWs to interview existing and successful franchisees to get ideas on how to manage a franchise and to find out if the franchise is profitable and appropriate in the area or location where you are planning to establish it. It is also nice to go to a place where there is a similar franchise existing and interview the customers if they are happy and satisfied with the products and services. This will help future franchisees decide what kind of business is suitable and needed by the customers. Choosing what franchise to engage in also depends on how much capital you can start with. When asked what popular and successful franchises he could suggest, Juan stressed that the top five franchises that are under P500,000 are Lotsa Pizza, Plato wraps, Bibingkinitan, Peanut world, Chicharific and RBX rice in a box (not in any particular order). He added that the franchises that are between P500,001 to above P1 million are Binalot, Aquabest, Royal Carribean Jamaican Patties, Gotoking and Seaoil.
- Create and maintain a contingency fund
Although franchises are considered 90% successful, it is sill imperative to create and maintain an emergency fund for urgent needs and for the inevitable ups and downs of the business. There are many factors that may affect its operation like the inevitable ones such as calamities, theft, fraud, and any related negative sides of any business. Bear in mind that you are not yet settled and not yet earning a good profit unless you have already reached the return of investment period. Do not invest all your money in it. Always save for the future.
- Establish rapport with the franchisor
The success of the franchisor depends on the success of the franchisee. The franchisor has a pool of expert employees who train the franchisee and its staff including his or her family and anyone who will be involved in the business. What franchisors often do is that during the opening of the franchise, they send their trained employees to demonstrate how to do the job. If the franchisee requests for a seminar and a demonstration that would last for few days, they can agree on these terms. The franchisors will never leave their franchisees alone. They regularly conduct training that will improve the franchisees’ performance and profit because they will both benefit in the long run.
References:
*Images belong to their respective owners.
https://www.businessnews.com.ph/ofws-can-ensure-franchise-success-working-abroad-20170603/
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