2010 offers a wide range of business opportunities, and franchising could hold the key to opening and facilitating many of them.
The second BizOpps – Business Opportunities and Franchise Expo, opened in this morning at the Cape Town International Convention Centre and will run until 15 March 2008. The expo is being staged by Kagiso Exhibitions and Events and has been designed to bring to one venue a wide range of franchise and business opportunities in the Western Cape.
Between 35 and 40% of all business grows thanks to small business activity, and franchising accounts for 12% of the total.
Business opportunities on offer at the expo range from as little as R30,000 or so, to more than a million, but one fact that was made clear is that when times get tougher, as now, franchising seems to buck the trend and instead of declining, tends to grow. Perhaps it is the thought in the back of people's minds that if they are an employee and their company cannot afford to keep them, they will be out of a job.
So, the solution is... become self-employed.
Naturally, going it ‘alone' as part of a franchise group is not a decision one should take lightly, but more and more people seem to be doing it, in a vote of confidence not only in themselves, but also in the country.
According to Your Business Magazine, there are some basic rules to follow – after taking the first step – finding the right opportunity to suit your business needs – and you must ensure that the decision you take is a calm, rational one that is free of influence by the franchisor or anyone else. When in doubt, and even if you're not, get advice from an accountant or lawyer. And always know absolutely to the ‘T' the implications of what you are signing.
The rules include:
- Ensuring that you know exactly what your financial input will have to be and then ensure that you will have sufficient funding to carry you while you are building you business.
- Realising it will not be easy... you will work hard, but the result will be well worth it. You will need to have be positive, be patient and have organisational and people skills, amongst others.
- Following the franchisor's system, and so you need to know what it is before you sign on the dotted line; if you reckon you will not be able to follow their system, then don't sign.
- Recruiting the right staff. Your employees are your frontline troops and the window to your business, so you must train and motivate them properly, and ensure the service you offer to your customers is the best. Always! In passing, Vera Valasis, Executive Director of the Franchising Association of South Africa, said that while 2010 offers a golden opportunity for franchising in South Africa, she is seriously concerned about our commitment to offering world-class service. She cited three examples… booking a car, and still having to wait 30 minutes at the airport, only to see someone else who had not booked depart within a couple of minutes... having room service delivered – and finding no cutlery or serviettes were included… or disabled passengers having to crawl off an aircraft because the lift was broken. Germany delivered excellent service when they hosted the last FIFA World Cup. South Africa must as well.
- Involvement... to get your community into your business, you must get into the community through supporting good causes and being involved in it.
- Communication - use emails, the telephone, newsletters... whatever means you can to communicate – and make sure you listen, really listen!
- Watching your finances like a hawk; minimise costs while you maximise revenues.
Valasis said that franchise operations are the biggest employer in the United States and there is a fantastic opportunity for us to make the most of the potential of franchising, not only in South Africa, but in Africa as a whole.
