If you have already visited a franchise fair where businesses that operate under a systematized and duly organized concept are offered, perhaps, during the tour, they continually repeated that the Franchisor's commitment is to have what is necessary to provide products or services to the network franchisees so that they obtain a competitive advantage in addition to the fact in the case of starting a similar business by yourself. The franchise must generate a margin and profits considering the level of investment, work to be done and the payment of royalties during the years that the contract lasts.
At this fair, some businesses do not correspond to franchises, however, they are presented as if they were and sometimes the visitor does not know how to distinguish them because they do not know how to operate a true franchise system. There is a big difference between operating a traditional business and one that operates under this scheme, in this business you must have experience in administration, systems development, finance, local, regional and national marketing, manage and know how to lead human resources and above all Take care of the good use of the brand and its image and all its units are operated in a homogeneous way.
When an entrepreneur decides to franchise, he considers the market in which he is and the potential markets where he can grow, the demand for his product or service in the long term, the additional benefits to the consumer, but above all, that his product is tested and be accepted.
Specifically, the business to be franchised includes four basic points:
- Market. Long-term demand. Goods and services must give something additional to the consumer. Product tested and accepted.
Expansion through a Franchise system allows you to grow in an organized manner with low investment risk and a higher probability of success. It also allows you to keep it homogeneous and strengthen the integration in the entire network of points of sale and can efficiently reproduce the technology developed in each of the franchised units. Its technical and administrative structure can be extended simultaneously to all franchisees to keep them always up-to-date and successfully face the competition.
Market dominance can be more effective with this strategy because the growth of the system will be planned as a whole. If a franchise possesses these qualities, it has great potential to grow within the republic. Mexico has many cities where you can exploit your concept, you only need encouragement from the states to increase the expansion of these businesses. The fairs for this type of business should be present in more states of the Republic to expand opportunities in other places that are not the City and the State of Mexico where it seems that only in this space is where opportunities exist, although it is true,This is due to the fact that everything is centralized and with the great difference that the competition is more aggressive and it is necessary to establish short-term strategies to face it.
The presence of China in the world and specifically in our country should be a cause for concern since many businesses do not reach their growth stage due to the aggressiveness with which they distribute their products and because of the low prices.
Franchisors, the fact of having converted your business into a franchise does not imply that it is the panacea in this type of business, it is necessary that you consider the great titans in business that with little effort can make your competition disappear, it is necessary to contemplate strategies of growth in other cities of the Republic offering accessible businesses to local investors with quality products or services, competitive prices and with a radical change in customer service, the latter would mark the difference between the businesses that are part of the network of franchises.
