Building A Successful Micro-Franchise Businessby Supply Hope With your help and financial support, HOPE CAN HAP
Franchising, as a concept, is often considered as a booming business expansion mechanism. It can, however, be a successful development model too. Taking all the little factors of franchising and applying those to smaller businesses, something like micro franchising can help those who aren’t even able to meet the basic necessities. But how can that happen?
- Setting Realistic Goals
The low-income group population in Nicaragua has barely been exposed to any entrepreneurial models. So there’s a need for setting active yet realistic goals. The micro franchising model must help these people support their families and generate a reasonable income. Franchisors must be aware of the real issues at ground zero and invest in sensible strategies to help the impoverished come out of poverty.
- A Practical Model
It’s more sustainable to use the proven micro franchising concepts and provide opportunities to those who hardly make a dollar or two per day. A well-researched model and well-planned model wouldn’t require the operator to have those entrepreneurial skills – dedication and confidence are what would make it happen. Rather than being excellent at inventing, the operators must be good at replication. They’d learn the art of business management while on the way.
Beth and Valente (Supply Hope), renowned micro franchisors in Nicaragua, believe that a practical micro franchise model is the one that offers a refined and pre-defined roadmap to the franchisee covering everything right from the products to the equipment, supply chain, marketing, and brand awareness, etc. There’s emotional, financial, and operational support, so the operators don’t sink into self-doubt or low self-esteem.
- Setting the Ideal Mindset
While developing the plan, it’s essential to have a social mindset – having to think like development practitioners would miss out on the entrepreneurial understanding and like a poor wouldn’t get the best results. Standard and typical principles need to be put to use while designing a sustainable model.
- Designing for A Market
Micro franchising is no different from any other business in terms of the target market. No market implies no business. If you’re launching your brand in areas where the customers cannot pay for goods – it’s just charity. Also, assumptions don’t work, so the plan needs to be researched in depth. Test, redevelop, and retest before getting to the market at scale.
- Building A Brand
If you aren’t building a brand, you aren’t making a successful franchise. Supply Hope nonprofit organization in Nicaragua, works right on this principle – Mercado Fresco, piloted by the NGO, is working towards providing opportunities to the poor in Nicaragua while building a familiar brand in the minds of the people. The standards, too, are clearly defined because if there’s no value to the brand, the franchisees would be reluctant to pay the fees or work towards sustaining the franchise.
- Choosing Simplicity
Nicaragua is amongst the poorest countries in The States. Prospective franchisees may have no prior business experience, limited education, no role models, low technical or planning skills, and inadequate resources. Such a group can be scared of failures, lack confidence, and even give up easily. The business inbox strategies you develop must take these factors into account and choose straightforwardness.
- Support, Support, And Support
More than anything, it’s crucial to ensure that you can support the franchisee once things get functional. Don’t overload them with information and expectations. Be there with them financially – help them manage finances, operationally – ensure the processes are followed correctly, and emotionally – instill confidence so they can face challenges in business and personal lives.
So these are the fundamental principles for developing a sustainable micro franchising business model. Let us know our thoughts on what, besides these points, would make a micro business thrive.
Created on Dec 11th 2020 08:21. Viewed 45 times.