Starting your own business can be a great challenge to get your professional career off the ground and for this there are many options available, but there are some that stand out above the rest: franchises.
In 2021, the Organization for Economic Cooperation and Development (OECD) evaluated how many independent workers had each nation of its member countries, with respect to the total number of employees and determined that Colombia has the highest percentage with 51%, well above Brazil (33%), Mexico (31.9%) and Greece (31.9%).
Franchises allow you to commercially exploit a brand, in exchange for recurring payments for a certain period of time. Therefore, franchises are a very profitable and viable option for those who want to start their own business, especially since according to the most recent send it by Colfranquicias last year 90% of them increased their salesa figure that was 7% higher than in 2021.
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One of the biggest obstacles that discourages potential entrepreneurs is the cost to make his dream come true: the high initial costs. Kumon is a study method and franchise that develops the cognitive capacity, reasoning, concentration and autonomy of children, in this regard the coordinator of Expansión, Nicolás Castro, points out that “investment depends on many factors such as the business concept, sector of activity, franchisor, type of space required, duration of the contract, reputation of the brand, etc., but Not all businesses require a high investmentFor example, ours is one of the cheapest in the academic field, it offers a return on investment in just two years and it is a service that does not lose validity over time”.
Recommendations before investing in a franchise
Owning a business can be a quick way to earn income, but you can also lose a lot of money. So if this self-employment model catches your attention, the Kumon executive suggests that Before taking the plunge, answer these questions and evaluate if you are ready:
- How do I know which one to choose? It is important that you identify if you can adjust to working with the constant guidance and supervision of the parent company and having to present some of their creative ideas for approval of the franchise headquarters. It is better that you choose a type of business that suits your tastes and preferences.
- How much do I have to invest? Although economic factors influence your decision, do not rush to think only about that. Choosing the wrong franchise can lead to failure. The best thing is to raise enough investment capital, and then acquire a brand that meets your needs.
- Do I understand the risk? It is essential that you advise yourself on the risk involved in buying that franchise. To do this, you can talk to the founders about the percentage of risk that the business has according to its sector. Also ask for sales figures and statistics, average profitability, type of support they offer and for how long, as well as any other information that allows you to make the right decision.
Finally, the Kumon Expansion coordinator, recommends evaluate the competitors and the differential of each one; consider the stability they offer and that it is not a business that is only fashionable; verify that it is a positioned and hopefully recognized brand; visit an established franchise and test its services like any other customer; and ask a franchise lawyer to review the contract to understand the commitments to be made.