Thursday, January 27, 2011
My reflections on franchises ( food)
Setting up a food franchise seems like such a simple exercise and yet it has proven to be very diffulct due to the amount of detail needed. Also unlike other businesses the level of investment is much higher as there is testing needed and daily costs that cannot get recouped quickly. the rewards are however large and the final product will be worth it. My feeling is that we have put everything in place now and I need to get some financing for the franchise. I did lose quite a few days ( 10) in the month due to holidays but this is no excuse. The risk for me is to put all my own money in i need to drive this business on my own saving operational costs. Hoever i have so many other things to do that this is not practical right now. So with all the 12 businesses it seems that testing the concepts, launching them in the public eye, building a business case is the way forward for me. if they take off like rocket ships then great. My biggest expense is paying staff which is just too risky right now. Is this an entrepreneusrhip lesson? I suppose it is. If you start a business you need to manage it yourself for a few years until you can hire a manager, not the other way round. For me there is no rush but i didnt start this business with employment in mind i started to test new innovations in the marketplace so this is what i will do. in the last 3 days we will wrap up the business case and costings and start marketing to investors and financing institutions. The other leson for me is that i will have so many business cases that have been well reserached which means i wont have all my bread in one basket. Some will get the financing and others wont.