It would be great fun to skip that period between starting a business and getting a position in the market. That opportunity exists for entrepreneurs. It’s called the franchise business and it’s making strides in Kenya.
Franchise business is growing in Kenya. This is part of the evolution of our economy towards formalization and sophistication. Multinational franchises making inroads into the Kenyan market grab the attention but it is something being conducted by Kenyans as well.
This model offers you an opportunity to get into entrepreneurship by climbing the tree from the branches. That is not all there is to it though. You ought to understand the fundamentals before buying into a franchise.
The basic requirement to get into the franchise business is capital. Climbing the tree from the branches, thus, gets two meanings. You have to cough up some dough since your burden and risk is lessened by buying into a proven reputable concept. In Kenya, you have to pay upwards of Sh. 10 Million to get a slice of a top brand.
–Alternatives to starting a business
Part of the capital is the minimum fee for the franchise. Apart from this you have to pay royalty and chip into training and marketing. So yeah, there’s a little bit of work.
As part of getting into a franchise business, you need to have experience or an understanding of the sector. A franchise is like a marriage, it’s not easy to leave (well). This knowledge also will help you choose the franchise to buy into. For instance, with franchising being common among restaurants; you will know that location affects profits and the logo at the entrance is not everything.
You will also need to accept the fact that a franchise demands accountability from you. Otherwise you’ll end up like these guys. You have to work within the franchisor’s restrictions. Don’t scoff yet. The benefit is that help is always a call away. The kind of help you won’t get from a mentor.
