Pinoy Business Coach

By: Pinoy Business Coach
 
It is a great development to see that even banks like Bank of the Philippine Islands (BPI) has opened a loan facility for individuals to go into Franchising.  Even other lending institutions are beginning to see that a Franchise is a more structured way of gaining business success.

What is a Franchise?  In a casual way of defining, a Franchise is a "business out of a box", a business developed and sold by others in such a way that all one has to do is follow the operational handbook, set-up and profits can be realized (ideally).  Majority of people know that Jollibee, McDonalds, 711 are all franchises, these are all the big franchises but only a few realize that there are also small, medium franchises which are equally good and are profitable.

While I do not claim to be a guru about this subject, I have observed and learned many things from books and friends who committed blunders in franchising.  These are just some tips that can help one go through the thought process in preparing one to become a great franchise owner:

1. Learn to select franchises- there are tons of books written about the subject. When you are seriously considering buying a franchise, the best thing to do is to read what other people have gone through in selecting a Franchise.

2. Go to Franchise Association for help- there are Groups that are wholly devoted to Franchising, examples include RK Franchise Consultancy,Philippine Franchise Authority, Franchise Philippines and many others.  They can provide valuable tips and aid you in the decision in Franchising.

3. Shop wisely- as with any endeavor, go through a long list of franchises that match your needs.  Do not be swayed by promos or the glitters of the signage and all the fancy gimmicks that the potential franchise has to offer.  Instead, go for operational history, the financial statements of the company and the success of the brand.

4. Understand that Not all Franchises are created equal- many would like to make a quick peso by just creating franchises "kuno" and will leave you hanging afterward.  What sets apart a great franchise from a good one is in my opinion-- Product/Operational Support.

5. Define your attitude- your attitudes and behavior will make or break the franchise outlet.  By this I mean that you need to look inside of yourself if you are really meant for franchising.  Taking on a franchise requires that you be ready to follow the step by step procedures outlined in the operational handbook.  If you do not have this skill set and would rather do things on your own then alas, you are not meant to become a franchisee but are better oft starting your own thing.

The benefits of franchising are great if they are done right.