Are you thinking about starting your own business in Malaysia? Are you having trouble finding the right location, funding, and staff to run your business in Malaysia? Many businesses fail because they are unable to find the right staff to run their business in Malaysia. However, there are alternatives that can solve this problem such as franchising your business in Malaysia using the alternative of hiring employees from the other party (the franchisor). In this article we are going to talk about the steps of how to franchise a business in Malaysia and why it can help you run your business in Malaysia.
What Is Franchising?
Franchising is one of two main methods of business ownership. The other, called independent contracting, is used by companies like FedEx and Home Depot. In franchising, an individual or corporation (called a franchisor) sells another person or corporation (called a franchisee or franchisee) on using its trade name, buying products from its supplier, and paying it money for doing so. There are many benefits for both parties: The franchisee enjoys economies of scale: She doesn’t have to buy all its supplies up front; when it needs more materials, it calls up its parent company, which has already done all that work. It also gets advertising help from its parent company.
Benefits Of Franchising
Franchising is an efficient way to expand your business and grow your revenue. The parent company provides you with an established brand, management techniques, and sales/marketing strategies that you can use while remaining independent and retaining control over your operations. You also have access to their established distribution networks (like supply chains), so you’ll be able to produce product more quickly and profitably than if you had started from scratch. While it can seem intimidating at first, becoming a franchisee isn’t that different from starting any other kind of company: You just need one thing—and franchisors are willing to give it away for free.
When Should You Franchise?
The number one reason for franchising a business is growth. You see, franchising can help you grow exponentially faster than you can organically. In other words, franchising allows you to expand your reach and tap into new markets without having to spend loads of time and resources hiring new people. There are many things that go into deciding whether or not franchising is right for your company. For example, if your margins are low and there isn’t much room for profitability, then it might not be worth considering at all.
What Are the Costs?
These costs vary widely. The biggest cost is probably legal fees for setting up your franchise, although there can also be startup costs for equipment and inventory if you don’t already have those things. Legal fees are typically around $20,000-$30,000 but could go up as high as $75,000 depending on where you are located and how complicated it is to set up a franchise agreement. Franchise consultants can also cost anywhere from 1% of your total franchising fee (over an 18–36-month period) all the way up to 7% or even more.
How To Find a Suitable Franchise?
Once you’ve decided that franchising is for you, it’s time to hunt for your new business opportunity. However, if you’re unfamiliar with franchises or have never opened or owned a small business before, it can be daunting at first. The process of choosing your franchise often begins with choosing which industry best suits your interests and goals. You might also find that looking into what types of franchise fees are typical will help aid your research. Once you know where to look for potential opportunities, be sure to perform thorough research on each prospective company. The more information you collect about each option, the easier it’ll be to narrow down your choices and find something that fits all of your needs.
What Are the Steps Involved in Opening a New Franchised Outlet?
Many people think franchising is just about opening a new outlet. But it’s not as simple as that. If you are contemplating setting up shop as a franchisee, you should first read these important tips on how to open your own franchised outlet successfully. Here’s an overview of what you need to do
Future Concerns
Franchising is all about money. Franchisors want your money, and they want it up front. They also want annual fees. But before you get too worried, there are some things that you can consider before jumping on board with franchising. Firstly, what kind of business are we talking about? Franchises tend to be more consumer-centric with chains such as McDonalds, KFC and Starbucks being prime examples; while B2B franchises have clients like Coca-Cola or Proctor & Gamble (to name but a few). The distinction here is that consumer-centric businesses bring people into stores for repeat visits whereas in B2B brands work directly with their end customer one time only.
Conclusion
In conclusion, franchising is one of the most popular ways to run your own business. It offers many benefits, such as training and quality control. If you have decided that franchising may be for you, here are some steps you can take. Do your research on specific franchises and develop an action plan. Once you’re ready, approach potential franchisees who have experience in retail or other similar fields. If you do everything right, success will follow!
