Thoughts of a Financial Idiot - franchises
A friend once asked me if I am keen to bring in a certain cafe chain to Singapore. Well I did think about it and then reasoned to myself: if I did that then I would be first paying a lump sum of money to the original owner and the business still had a certain risk of failing. I would have lost a large sum of money (in the range of 100K to 200K) even before I started! Fanchises dont really maximise their profits as they are paying heaps to the original owner.
Well to be fair it depends a lot on the type of business and location of the outlet. I guess 7 -Elevens are still profitable, as long as the location is right. But the same may not be said about a specialised product which does not target the masses.
Sure it is tempting when you see the brand so sucecessful in other countries, especially if it is something close to my heart like a cosy cafe or something, but I keep reminding myself not to be tempted.
I keep telling myself, instead of being the franchisee, why dont I be the franchiser instead? Why dont I use my creative thinking as an Architect to conceptualise and create a brand which will be successful? That certainly seems possible. The brand does not have to be established historically, as long as it is successful.
I think I might do that one day, when my brain is freed from thinking about other things.....haha..Anyone wanna give it a go with me?
Well to be fair it depends a lot on the type of business and location of the outlet. I guess 7 -Elevens are still profitable, as long as the location is right. But the same may not be said about a specialised product which does not target the masses.
Sure it is tempting when you see the brand so sucecessful in other countries, especially if it is something close to my heart like a cosy cafe or something, but I keep reminding myself not to be tempted.
I keep telling myself, instead of being the franchisee, why dont I be the franchiser instead? Why dont I use my creative thinking as an Architect to conceptualise and create a brand which will be successful? That certainly seems possible. The brand does not have to be established historically, as long as it is successful.
I think I might do that one day, when my brain is freed from thinking about other things.....haha..Anyone wanna give it a go with me?
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