Franchising. Time management

6. What is important when operating franchise efficiently...?

- Time management

- People management

To start with, to operate franchise efficiently you should conform to some requirements.

The first thing you should take into account is proper time management. It makes sense to make mental lists early in the morning. Because it is the best way to keep things organized. Moreover, it is essential to tackle problems in the priority order. Otherwise you will have to take work home and even work into early hours. Which can do harm to your productivity.

Secondly, people management plays a great role in a franchise business. It is vital to delegate some duties to other staff members in order to concentrate on more important administrative work. These may be dealing with train records, payrolls, taxes, taking care of maintenance or refurbishments and arranging local marketing

Lastly and most importantly, networking plays a great role. First of all it means having regular meetings with a field consultant and other franchisees to share ideas and experience. Secondly, you should obey the regulations of a franchisor such as quality, service, cleanliness, choice of suppliers.

To conclude, franchising business is rather profitable, but requires a lot of effort to make.

7. What is important when buying a franchise...?

- calculate investment costs

- be aware of disadvantages

Buying a franchise is considered a safe bet but you should take into account many factors.

First of all you should calculate investment costs. Under franchise agreement a franchisee pays an initial sum of money, which is called a franchise fee. Moreover franchisee agrees to pay royalty for continuing advice and assistance, which is usually calculated as percentage of turnover. In addition an entrepreneur has to pay advertising fee to contribute to the franchisors annual advertising and marketing costs. Other costs include personnel cost, training cost, taxes and different overheads.

However it’s absolutely necessary to be aware of disadvantages. The main one is that you can’t take initiative in many aspects such as quality of service, values and have to operate within the format accepted by the franchise system.

Lastly and most importantly advantages of buying a franchise are significant. First and foremost the system guarantees high profits in a relatively short period of time. This strategy helps to enter and succeed in highly competitive markets such as food and clothing. And lastly – advertising and marketing costs are not so great.

In conclusion, before making the final decision you should take into account advantages and disadvantages carefully.

Дата добавления: 2015-08-13