Dec 21

Franchising, what needs to be consider before taking the plunge!!

Posted in: Business Talk

I guess after the big players like McDonalds, Starbucks, Coffee Bean and the emergence of local ‘hero’ franchises like Old Town, The Manhattan Fish Market, Pappa Rich, etc, many want to be business owners are turning towards buying franchise license. It is one of the easiest ways to own a business and not having to deal with the inexperienced, the hassle of formulating the initial business model and concept and branding issues. But before deciding on buying a franchise license, it would be worth the money to take a look at the ups and downs of becoming a franchisee.

What do one gets for becoming a franchisee?

  • Becoming one’s own boss to a certain extend although one is lacking in capital or business operation experience.
  • Acquire a ready establish business model, thus would be able to operate as a mature business and with advises from the franchisor. Faster returns (in many cases) as compared to a newly start-up business.
  • Gain other businesses efforts, expertises, know-how, procedures, training, collective buying power, and advertising.
  • Established Brand recognition brought over the Franchise, thus eliminate this hurdle by developing an image in the marketplace.

What do one forgoes for signing the franchise agreement?

  • One must work, operate and act according to the franchisors terms and conditions. Therefore loosing the will, control and capacity to do as you want or need to do to develop your own market. It is a no go for someone who dislikes working for an employer.
  • One would have give up a portion of its profits in return for the benefits gain from buying the franchise licence. In addition to initial franchise fee, there is also a percentage of monthly gross that is put back to the parent company.
  • Forced to purchase goods from appointed suppliers or parent company, which may prohibit you from getting the best prices.

After considering the above benefits and disadvantages of buying a franchise licence and you have decided to go ahead with franchising as your mode of entry to becoming a business owner. Then, you would need to consider the type of franchise that is most suitable to your interest and character.

  • Do not be misled by promise of high income, potential growth and popularity. Consider the possibility of interest, enjoyment and knowledge of a particular product or service. This would induce one to stay longer with the business or franchise.
  • Should research on the existing and possible competition from within and without the industry or market.
  • Another must consider would be the stage the franchise business is at in the product or market cycle. Whether it is at the growing, maturing, saturated or declining stage.
  • History of support provision by the franchisor that would be the essential building blocks for personal growth and also business viability.

Any decision made on whether to buy a franchise licence or start your business should be base on your own research, planning, strategising, projections and capacity in terms of knowledge, experience and capital.

Next article we would be looking into the how to create your own franchise and its requirements. And for more information on the article posts or publish, do not hesitate to contact us at jason@kwangventure.com.

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Nov 21

Marketing vs. Branding

Posted in: Marketing Management

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Am i a zebra or a horse?

What is Marketing or Strategic Marketing and what is Branding? Are they the same? These are some of the questions that many are still not sure of the answer or have confused these two concept to be one. Therefore, we would have to begin from the very basics to answer these questions.

What is Marketing to me? Marketing is the management process that identifies, anticipates and satisfies customer requirements profitably.  Therefore, it forms a social and managerial process which individuals or businesses finds an unsatisfied need or want, creates a product or service and supplies it in the most efficient manner and price to provide value to the consumer or buyer and earn a premium or profit in the process. In short, the Marketing process places customer or consumer satisfaction in the focal point of all business activities.

Some of the important elements in the Marketing philosophy or concept are as follows:

  • Marketing focuses on the satisfaction of customer needs, wants and requirements.
  • The philosophy of marketing needs to be owned by everyone from within the organisation.
  • Future needs of the market have to be identified and anticipated.

And what is Branding or what is a brand? A brand is a name, term, sign, symbol, design or value, or a combination of them intended to identify the goods and services or businesses that differentiate one from another. Therefore, it is understandably that branding is about getting the potential customers to notice you as the most suitable solution provider to their needs and wants. Thus, the objectives of branding or a brand should be:

  • To delivers the message clearly.
  • To confirm your credibility.
  • To capture the emotions of your target prospects.
  • To encourage or motivates potential buyers to act to your benefit.
  • To create and strengthen loyalty or emotional attachment.
  • To generate value to the brand.

Therefore, to succeed in branding your business or products, one must first understand the needs and wants of your target audience or market and create something that can satisfy and give value to the target market.

To summarise, Marketing is the social and managerial process of satisfying customer needs and wants, and branding is the process of persuading your target audience to choose you from the others.

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