Franchising, in lay terms means jumping on the success train of an established brand to start a profitable business. Franchising works in various types of business ventures with the common goal of expansion and wealth creation.
A wise man once said "if you want to go fast, go alone but if you want to go far, go with people." How does this relate to franchising? lets see.. You are an entrepreneur,you are starting your business : brand creation, awareness and customer segmentation is no small feat. It will take time, lots of money and hours of twigging the strategy.
The result you desire will surely come but at what speed? at what cost? how about man power? im so sure you get the drift. Franchising on the other hand shortens this curve, you know the niche you are interested in, study the profile of the key players and then jump on the train.
This model or the cloned version of franchising is used by big organisations to grow their brands while creating wealth for those involved. Why is Dstv or Gotv big? yes! franchising and the cloned version of franchising is the agent close to you. This is a win-win situation.,how about KFC? same story.
Franchising in agribusiness: opportunities abound to jump on the train and forget about overcoming inertia issues. #Join the moving train.
Lets look at the poultry industry: your dream is to sell processed chicken but dont have funds to start and reach your goal? How about red meat value chain?
Look at the giants in the industry, check the group with the widest coverage, check the brands that are on popular demand, visit stores/ malls/do market survey then join the moving train. Start out as a franchise to your chosen brand,and grow the business..
Dr.Henrietta Ojuri, Value chain strategist.You still have the dream to start your own brand? it gets better. Learn the ropes while selling another brand, accumulate wealth and come up with a new product also in the poultry value chain that popped up as a business idea from feedback from customers. The time to use the network you have created to increase your net worth is here.
Franchising in agribusiness : 1) reduce start up cost. 2) Labor is reduced. 3) cost of production is zero. 4) Cost advertisement is reduced. The company already has web presence, usually your shop address will just be included in the... available at following outlets. You will just link that to your own page and in comes customers with cash.
Franchising in agribusiness is profitable but the franchisee must be innovative to ride on the brand's success.
How can investors in agribusiness use this model to empower youths while expanding the brand? join me next time.
