What is a franchise? Do these 7 things so that the franchise runs smoothly
Get to know what franchise is important especially when you want to get passive income in addition to routine monthly revenues obtained. Especially at this time, the strength of the spending of the middle class in Indonesia has developed rapidly, so the franchise business is increasingly in demand. The franchise can generally be interpreted as a business system that allows being traded to bring income for the perpetrators.
There are two important terms that you must learn before pursuing this one business format, namely the franchisor and franchisee. In Indonesia, the franchisor is a franchise owner that makes or provides a business system. Meanwhile, the party that buys the business system is called a franchisee.
The owner of the franchise or franchisor will receive royalties and sustainable costs paid by the franchisee. In return, the franchisee obtains the use of trademarks, sustainable support from the franchisor, and the right to use the franchise system to do business and sell products or services.
General Regulations for Franchise
There are enough people who understand what a franchise is. However, many beginner businessmen who trapped in losses because they did not get enough information related to the general regulations imposed by the government for a franchise businessman.
Please note that a franchise must use goods and/or services produced domestically for 80% of business material, including raw materials, equipment, and trade goods.
Furthermore, the government also requires each franchisor and franchisee to make annual reports regarding the development of the franchise business. Through this report later the authorities will officially issue a franchise registration letter.
Reporting this must be done before March 31 each year. If not, then both parties will get written warnings three times and a fine of $ 10,000.
After understanding general regulations related to franchises in Indonesia, now you are more prepared to start. Only have minimum capital? Take it easy, these six things can help you to run a franchise smoothly and profitably.
Create a Perfect Business System
For the franchise to run smoothly, of course, it takes a perfect business system. Not infrequently the errors in the business system will make the franchisor and franchisee forced to go bankrupt.
Therefore, before promoting or marketing a franchise, preferably checking the system and trial. If there are still those who haven’t run perfectly, immediately do repairs. Don’t hesitate to consult those who have been successful in the field of the franchise.
The business system created by perfect will affect the course of the business and smooth management of licensing documents. The preparation of the mature system will prevent the land of legal problems later.
Create a reasonable business proposal
In addition to creating a perfect business system, you must also be able to make possible realistic business proposals. Ensure that the numbers listed are based on the results of the research, not exaggerated and also not reduced. Because this business proposal will affect the credibility and long-term trust of the franchisee. Don’t forget, you also need capital that needs to be prepared, so that what minimal capital franchise doesn’t stop just on the slogan.
Give detailed information
The franchise you offer will attract the attention of capital owners and franchisees if they provide comprehensive information. This is because they can truly study the business system and capital needed to run the franchise itself. You can also add proposals, legal status, descriptions of products and services, to the cooperation system to be built.
Furthermore, if the franchise product is in the form of goods, then you must explain how many stocks need to be prepared in a marketing period. Conversely, if the franchise is a service or community service, it should inform the detail of the procedure of each step that must be done when running the franchise. That way, rights, and obligations will be visible to minimize the occurrence of misunderstandings.
Prepare offline offices
Having an offline office for franchise businessmen is an absolute thing. Regardless of the magnitude of the initial capital you have, the professionalism and credibility of the franchise are strongly influenced by the offline office. You can use a private home or utilize a co-working space as an offline office for the franchise-owned. Of course, this helps coordination in the team more easily implemented optimally.
Perform market research
Finding out what a franchise is not enough without being accompanied by mature market research. Just like other business forms, you must also know anyone who will be a target market, determine the marketing strategy based on the demographic audience, to study the opportunities that exist from other competitors in the same region. Through valid market research results, you can also monitor and periodically evaluate so that the franchise continues to grow in a better direction.
Even though it looks trivial, market research activities greatly affect the course of the franchise. Moreover, the relatively fast condition of Indonesian society changes, following the global developing trends. For this reason, you must always be up-to-date with the consumption pattern that takes place in the local community.
One more thing you must do so that the franchise runs smoothly, namely marketing the business system, both offline and online. This promotion can do door-to-door or by visiting one by one franchisee. More and more know your franchise, it is certainly easier to get the trust of the market. Don’t hesitate to use the internet and social media in promoting the franchise.
You can also build a website to look more professional in the presence of capital owners and franchisees. Add interesting content, both in the form of articles, images, and videos that are relevant to franchise activities. To increase website visibility, also make sure that you have used a domain that is easy to remember. In addition, to prevent loss of traffic or developing malware viruses, use cloud hosting that proved safe, fast, and reliable.
After understanding what franchise and learn tips on successfully running the business system, are you interested in working on it? In 2021, the franchise still has quite a lot of interest in some countries. Some opportunities you can try include freight forwarding expedition services, tutoring institutions, retail, to those engaged in culinary.
Through a franchise, you are still beginners in terms of business can start a business faster. In addition, the franchise perpetrators also have no trouble obtaining profits, because the brand purchased already has its name and reputation guaranteed. You only need to make the best franchise choice and according to the passion owned, so the franchise runs more smoothly and pleasantly. So what are you waiting for? Immediately start your franchise business and get profits profusely. Good luck!