The Sparkleminds Blog

How To Franchise.The Mistakes Of Successful Franchisers. Franchise My Business Learning For You.

2011-12-22T13:02:00.000+05:30

We had a very interesting franchise networking meet last evening at the Catholic Club organized by the Franchising Association of India. Having reached out to over 200 franchisers from Bangalore for this Evening, i think that these meets are a great way for companies exploring franchising or young franchisors on the one hand and for the mature franchisors on the other, as we had industry leaders speaking from their own experiences, and how they dealt with their business challenges in general and franchising in particular.We will have many such Franchise Meets over the next couple of months across the country and build up a discussion on how we can strengthen franchising for every business owner / company who are exploring franchising or want to franchise or are already franchising and need some solutions or the other. Since its a growing system, we believe there will be new challenges everyday and there will be solutions through which each one of us travel. So lets make the journey easier for other, lets not re-invent the wheel, when somebody else has already figured the best way to do it, lets just follow it and improvise.

To Begin with Chaitanya Manohar, who is the COO LJ Hooker India, did bring out interesting observations about how they have evolved as a Franchisor over the last 5 Years and what has been their franchising in india experience. He firstly began with how they were signing up franchises during the initial phases of their franchising based on the investment capabilities, and how people were ready to sign the dotted lines and give them Cheques at the booths of the franchise exhibitions in which they were participating. They had the franchising documents from the Australian parent company including the franchise manuals, franchise agreements and a whole set of training material provided by the franchisor and felt that they were ready to go.

But now, they follow a strict profiling process, only take in existing real estate brokers/agents, have stopped participating in franchise exhibitions and have evolved their own franchise marketing strategy to reach out to their prospective franchises. The entire process, documentation and business has been completely adapted to Indian Conditions and they have come to terms with the India ‘Cash’ Business, unlike the international concept where the franchisor initially told them that collect the cash and deposit it into the accounts. Here the franchisees were collecting cash and there was no depositing into the account or even for that matter reporting the transaction. So they figured a solution around this problem and today work on an entirely different franchise model, adapted to the indian conditions. He also emphasized on a strong water tight franchise agreement, irrespective of whether you plan to use those privileges, you must have the same into your agreement. He also bought out the importance of having a very strong Pilot or a Prototype, not only to share the visual model, but also to get the functional model in place. Today they have over 25 Sales person ell working directly within one office and all of them follow a uniform system and management process. The franchises also go through the same process.

Rakesh N Rao, from Telematics4u shared their experiences of how they were engaging all kinds of franchisees for their business. Having people with diverse backgrounds as varied as retired GM’s or technical employees to business men to transport operators, they were all trained, oriented and then supported according to their level of expertise. Having a very unique business model and a even more unique subscription based revenue model from the franchises, they devised a franchise plan which ensured that there were no loose ends on any side. They were now exploring the next challenge of reaching out to Tier 2 and Tier 3 cities and towns of India and were trying to understand the different franchise marketing options that their company could explore.

Angad Menon from Jyothi Fabricare Services Ltd, who were exploring the options of franchising out Fabricare Laundry Franchise was trying to understand, the criticalities of rolling out the franchises. As they were very concerned of putting in the right franchise model, the organization was currently studying various franchise systems and were on their way to reaching a model, which could deliver their services, as per their plan.

Balachandra A Yadalam, India Master Franchise of Howards Storage World,Australia, emphasized on how they were absolutely focussed on Tier 1 cities of India, having a catchment of affluent consumers and how they have been doing tremendous sales at Mantri Mall in Bangalore. He bought out the relevance of having international best practices and having the right components of everything whilst designing, laying out and commissioning the retail outlets. He did bring out the importance of having atleast 3500 Sft of space to give consumers the relevant experience, along with which it was very important to have a storage area within the store to stock additional items. Since India was very new to the concept, they were excited about the response that the consumers had been giving to their products, store and the overall concept.

Viswapal K.J. Director of LE DAUPHINZ a budding Pre-School brought out his experience of the evergrowing Pre-School Franchise market of India. Despite the Big Brands present in the Industry, they were extremely happy with the quality of response they were receiving from wannabe franchisees. They did take an initial 4 years to set up their entire systems and processes only after which they have begun franchising. He also bought out the relevance of choosing the right partners and said that they were extremely focused on meeting the franchisees several times, before they actually took them on board.

The participants had a good time over High Tea, exchanging notes with each other and learning from their individual experiences. I am sure, they have already got back to their offices and have begun working with several changes that they will initiate, from the franchise meet.

If you are a business owner and are exploring franchising or are already franchising and want to participate in these meets, please mail me on franchise@sparkleminds.com or call us on 080-41512345 and I will be more than glad to give you the details and help you with any franchise solutions that you may seek.

Tags: Franchising Association Of India, Preschool Franchise, Franchise My Business, How To Franchise, Retail Franchise, Real Estate Franchise, Franchise Seminar, Franchise Event, Franchise Conference

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Reaching Out To A Reputed Franchise Consultancy for Growth: An Option or A Necessity.

2011-12-17T15:42:00.000+05:30

What is the surest way to have 100 units of my business across the country? Somebody asked me after one of my speeches at those franchise networking seminars, during the open session.

My answer came in an instant. ‘Well get a franchise consultant on board and get started with a proper initial franchise consultation exercise for your business or your idea. Your business will get there faster than you ever dreamed, more effectively than you ever thought and will be ready to take exponential growth in the coming years. Now that is the rosy part. The trickier part is that it is going to be extremely challenging and will test you and your business in every possible way. It will make you go through a grueling regimen…worse than some of the most difficult military exercises, as it will not only drain you physically, but even mentally and financially. But that’s exactly what it takes to make a great business, a great brand or a great franchise.’

Next was the turn of an entrepreneur, who promptly put out his stand point, questioning as to why should they hire franchise consultants and how should they evaluate a franchise professional. Also what if he looked at becoming a franchise consultant, how should he choose the right franchise consultancy to partner with. I choose to answer this in the following paragraphs.

Budding entrepreneurs can greatly benefit from the help of a professional business consultant from franchise consultancy firms. Their advice will be helpful while setting up their own business. For promoting one's business, a consultant can provide new ideas for franchise business opportunities and help in goal-setting and effective strategies and give you responses from the industry and the companies track records. Franchises are one of the easiest ways to earn serious profit because business owners are taking on the responsibility of managing an already successful product or service. Many people are aware of the benefits of investing in a franchise. Moreover, the owner is spared from spending too much time and money on training employees and marketing, when one owns a franchise. Hence you should be able to get a proper evaluation of all of these factors from a franchising consultant.

The process the franchise consultancy will take you through should be similar to the steps that follow, assuming you are working with a reputable consultant company. Your initial call with a consultant will allow you to judge the ability as a consultant and the consultant's expertise in franchising. At the same time, the franchising consultant will ask your questions to determine if it is the right career option for you and he/she will be assessing your interest in franchise ownership. One of the most important decisions you will ever make is finding a franchise business to own.

Choosing poorly can cause you endless headaches and financial distress, while choosing the right franchise can make your business ownership dreams come true. Let your franchising consultancy know so that they can prevent any future conflicts of interest, if you are working with more than one franchising consultants or if you have started the process with a franchisor or a franchising company, but have decided to research other options.

A franchise consultancy is there to offer solid guidance and advice where you need it and to make your job a hell lot easier. As you make your decision, look for a consultant that will be your advocate in the research process and guide you. You will need to be serious about this process and be prepared to do your own due diligence, as you would about searching for a new job.

It is good to know that with franchise consultancy firms; there are businesses that work in partnership. With attractive franchise's opportunities that match their goals, skills, and interest perfectly, these firms have professional consultants who can provide budding entrepreneurs. Moreover, for ensuring the success of their franchise, consultants can also help their clients formulate effective business goals and strategies. There is a lot to choose from, with thousands of franchise companies in over 75 different industries.

You could also choose to become a franchise consultant. However, it is an extremely difficult industry and will need proper dedication from you. Some individuals still do not get enough profit and even go out of business, although a franchise consultancy has the potential to be extremely lucrative, in the long run. Oftentimes, this is the result of hasty decision-making or poor planning. On the day that the franchisee decides to invest in a business, the success of a franchise may very well be determined. It is more likely for a business to prosper and become profitable by being careful about choosing which franchise business opportunities are ideal ahead of time.

The process is different if it is a business owner who wants to franchise a business that already exists and want to create a franchise company. The franchise consultant, evaluates the entire business, initially from a franchise readiness perspective and then from an action plan of how to franchise the business and then to set clear operational, technical, marketing, and financial systems in place. All of these have to function like well-oiled machinery, well synchronized and properly delegated. The franchise consultancy will then plan the franchisee profile, and then a franchise marketing plan, after which franchise recruitment starts. Once the franchisees are on board, then franchise trainings take place, after which there is ongoing franchise support function in place.

Hence with entrepreneurs literally getting free services from franchise consultants and companies getting a tried, tested, and most effective formula for quickly expanding their business, it is but imperative for one to hire a reputed franchise consultancy before beginning their franchise journeys, if saving money, time and effort is a necessity and not an option.

Keywords: Franchise Consultancy, Franchise Consultants, franchise company, franchising company, franchising consultant, franchising consultants, franchising company.

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Indian Retail Market Opening Further For Foreign Direct Investments.

2011-06-08T16:35:00.011+05:30

India Opening Its Retail To FDI

The Indian government is considering liberalising its stringent rules on foreign direct investment in the country's US$28 billion organised retail trade.

Such an opening up has been a long-standing goal of foreign supermarket giants eager to penetrate this burgeoning market of a billion-plus consumers.

India's retail sector is heavily regulated, with strict limits on investment from abroad. Foreign investors are allowed to own up to 51 per cent of stores that sell only one brand of products.

Retailers such as Walmart, Carrefour and Marks & Spencer, which sell multiple brands, are allowed to operate in India only through franchise tie-ups with local partners.

The government is considering allowing 51 per cent foreign ownership of multi-brand retailers, a policy change that would enable foreign retailers to woo Indian consumers directly.

The government has previously been sternly opposed to deregulation, despite intense lobbying by foreign retailers, as it feared this could damage the business of the millions of traditional family-owned stores, known colloquially as kiranas, that dominate the sector and employ 40 million people.

But a report on inflation presented last week by a government-appointed panel initiated a change of heart.

"We are taking a clear position on foreign direct investment in multi-brand retail," said Kaushik Basu, India's chief economic adviser, who led the panel.

"[Our] research shows that more jobs will be created if the retail sector is opened up than those that will be lost as a result of it."

With its economy growing strongly, India is experiencing a retail revolution. The sector is buoyed by the rising affluence and expansion of India's 300 million-strong middle class.

According to the UK's Business Monitor International, total retail sales in India will grow from $395.96bn (Dh1.45 trillion) this year to $785.12bn by 2015. The Boston Consulting Group (BCG) estimates that the organised retail sector has the potential to grow to $260bn by 2020, but there is a pressing need for cash flow of $60bn over the next decade to achieve that target. That can happen only if India relaxes its tough rules on investment from abroad, experts say.

"This is a very capital-intensive business," Rajan Bharti Mittal, the managing director of the retail giant

"We should allow investors to come in and create a viable ecosystem for the retail business."

Inflation, decried as a tax on the poor, stood at 8.66 per cent in April, higher than the central bank's projected level of 5 per cent. In recent months, rising prices, especially for food, have sparked angry street protests - and inflation has caused several governments to be voted out of power in the past.

Rising food prices are squeezing the budgets of hundreds of millions of households, which typically spend between 30 per cent and 60 per cent of their monthly earnings on groceries.

But research shows that organised retail chains are less prone to inflationary pressures than kiranas.

A study conducted in December by BCG in four Indian cities found that organised retail stores offer consumers monthly savings of more than 6 per cent on food and groceries in comparison with the kiranas.

"These [savings] can be used to pay one month's electricity bill or a premium for a systematic investment plan to secure one child's future," BCG said in its study.

A 2007 study by the Mumbai credit ratings agency Crisil reported that about 1 trillion rupees (Dh82.14bn) worth of food was being lost annually to wastage and poor warehousing.

Organised retail, it said, could bolster the food supply chain, increase farm incomes and reduce the price of food.

Source: Anuj Chopra, The National Ae, June 7 2011.

Tags: FDI India, Investments In India, India Entry Strategy, India Challenges,organized retail,multi-brand retail,retail business, India Master Franchise, India Licensee,

Are You Ready To Franchise Your Business In India:Is India amongst the most attractive franchise markets in the world?

2011-05-27T13:34:00.000+05:30

India has been on the minds of many businesses and franchises looking for international expansion, and it’s no wonder. With a population growing faster than that of China (has garnered most of the business attention recently) and a quickly expanding middle-class of consumers, India is poised to offer great financial gains to those who venture into the region and invest early in franchising their businesses in this country.

India’s Growing Population

The second largest country in the world in terms of people, India is expected to surpass the population of China (currently the most populated country) by 2030. A full 17% of the world’s population resides in India, and while the country has tried to control their population growth the younger generation is one of the biggest in the world.

With a growing middle-class of consumers there will be much more demand for newer and higher quality products and services than what exists today. And a younger population means more years of economic productivity and a higher spending potential over a longer period of time. Transportation and telecommunications are constantly improving in India as is access to the internet and, therefore, an awareness of more global brands and trends. All of these factors create a recipe perfect for incoming businesses and franchises.

Franchises in India

The franchise industry is already big in India. According to estimates there are more than two million franchisees in the country. It has been calculated that these franchises are generating an estimated turnover of $8.5 billion and is expected to more than double by next year. Some predictions say that the franchising industry in India will grow at an annual rate of 30%.

The top prospective industries for successful franchises in India are:

Education

Food and Beverage

Apparel and Other Retail

Entertainment

Financial Services

Courier & Other Services

Stationary and Gift shops

Health and Beauty

Fitness, Nutrition & Wellness

Some of the most recognizable global brands who have already made their mark on India are McDonald’s, Subway, Dominos, Yum Brands, and Baskin Robbins. A recent example of the acceptance of global brands and culture embracing soccer in this cricket frenzied nation saw, Manchester United Food & Beverage opening six franchise locations across India in the last year. The number of young and affluent Indians as well as the Manchester United soccer team’s popularity across the country has helped to significantly boost the number of inquiries Manchester United Food & Beverage has received from potential franchisees.This truly speaks volumes of the aspirations and awareness of the indian consumer and how it is poised to arrive on the global scene.

There are differences to note when contemplating franchise expansion in India. For one, customs and cultures can be very different from elsewhere in the world and you must be willing to adapt a brand to those preferences.Mc Donalds and Pizza Hut have their first Pure Veg Restaurants in the world in India. There are a great deal more legal and regulatory requirements that need to be met including trademark registration, exchange control regulations, and taxes. The country is ripe for franchise and small business expansion though, so if you’re considering an international business endeavor, India may be the place for you.You will definately be in for a pleasant surprise to see that India has come of age and there are consumers here for a wide variety of products and services.

Tags:Franchise In India, Franchise India, International Franchising In India, India Master Franchise, India Franchise Consultants, India Franchise Model,Franchise Business India,

Javed Habib betting big on franchise model salons

2011-05-09T14:57:00.000+05:30

May 09, 2011

Jawed Habib, celebrity hair stylist, now managing director of Jawed Habib Hair and Beauty Ltd (JHHBL), is planning to have around 5,000 salons across India over the next five years. His company is looking for potential franchise partners to scale up its operations. JHHBL, which started with 37 outlets in 2006, currently runs 184 outlets -- both franchise and owned.

“Our business is now completely based on franchise model. We have 12 stores which are in a joint venture format. The balance is franchised. We take franchisee fees from them when they come on board. On a monthly basis, they have to give 15 per cent of the total revenue. These are the two major revenue streams that we have,” Habib says.

“Apart from them, we have something called territorial selling, where we sell territories to a master franchisee, so that he can manage the territory. He acts as an agent of us for that territory. Then we have a lot of floor space in our saloons, which we rent out to business firms that match our profile,” he further added.

Speaking about the growth rate, he said: “Last year, we were close to Rs 22 crore. This year, we should be able to close at Rs 50 crore.”

Green Trends opens franchise salon in Chennai

2011-05-07T13:58:00.000+05:30

Green Trends Hair & Style Salon, owned by Trends In Vogue Pvt Ltd, a CavinKare Group company, has recently launched its exclusive unisex franchise salon in Chennai. Located at Shanthi Colony, Anna Nagar, this is Green Trends' 43rd outlet in India and 23rd in Chennai. Spread across an area of 1,200 square feet, the salon has seven haircut zones, three spa/facial zones, two hair wash and one pedicure section.

The interiors in the salon are serene with ample lighting, giving customers a relaxed atmosphere. The salon is furnished with modern, stylish and comfortable equipment and seating zones.

Green Trends is a pioneer in offering a full range of grooming solutions for value-conscious consumers. It offers trendy haircuts and colour services, complete skin care solutions and bridal packages at affordable rates.

Source : Franchise Plus

Electronic Chains Look To Franchising To Expand.Encoding Electronics Retail In India.

2011-05-02T12:55:00.000+05:30

KOLKATA | BANGALORE: Kishore Biyani has yet to crack one segment of the business: electronics retailing. eZone has been a drag on his Future Group and India's largest retailer last month decided to hive off the business and look for a strategic partner.

Biyani also decided to shrink eZone outlets to almost one-tenth their current size, build centralised inventory and boost online sales to revive the business.

"Margins are low, costs are high as we are present in malls and prime locations," says Biyani. eZone has to provide display and store inventory, and needs a warehouse for every store. "This calls for a relook at the model," he says.

Biyani is not the only one struggling to fix tech retailing.

Caught between low retailers' cuts and high inventory costs and rentals, other big players such as Videocon's Next Retail and Reliance Digital too are reducing shop sizes, expanding into smaller cities, negotiating higher margins with brands, integrating online operations with retail outlets and/or even offering after-sales services to improve profitability.

So what's ailing big electronics retailers?

MARGIN BLUES

The retailer's cut, or margins, on electronics goods are much lower than, say, fashion apparel and packed food (see graphic).

Retailers such as eZone and Next are negotiating higher margins with brands, but the bargaining power favours manufacturers because modern retail accounts for only 6% of total electronics sales.

A senior executive of a Korean brand says it is not possible to offer higher margins because manufacturers themselves operate on low margins of around 2-3%. "In the US, the margins offered to retailers like Wal-Mart and Best Buy may be more, but they also take care of product installation and after-sales service which is the responsibility of the manufacturers in India," the executive says on condition of anonymity. Korean brands LG and Samsung account for half of India's 35,000-crore consumer electronics market.

COSTS GO OUT OF CONTROL

If their margins are wafer-thin, big tech retailers' expenses are sky high. They are present in prime locations and mostly have large-format shops.

The segment is driven by technology and trends, which force retailers to clear out stock faster and offer discounts on older models and pieces used for display.

Inventory-holding costs are higher due to big size and fragile nature of electronics and durables. They need more staff because consumer engagement is higher and employees need to be educated to explain the latest technologies to customers. Power consumption is huge because all products are wired. Then there is marketing expense.

"National retail chains are barely managing to break even and sometimes even selling at a loss to liquidate excess inventory," says the chief of a durable maker.

But the person blames retail chains' price undercutting and excessive spends for this. "Their overheads on manpower, ads and price promotions are in excess of 12%, on an average. Dealer-driven stores or even regional chains have overheads of only 3-4%."

Industry experts say national chains expanded aggressively without understanding the market nuances.

"Three years ago, when large companies entered the electronics retail segment we wondered how they would manage costs, particularly with a top-heavy structure," says Nilesh Gupta, managing partner at Vijay Sales, a 1, 250-crore family-run electronics retailer that entered the business 45 years ago and has presence in Maharashtra, Gujarat and New Delhi.

BA Kodandarama Setty, CMD of Chennai-based Vivek Ltd, says big retailers were in a hurry to build scale. "Indian retailers want to do in five years what someone has done in 50 years," he says. "Retail takes time to build.Even Wal-Mart took 60 years to become the world's largest."

The 370-crore Viveks operated with just three stores in Chennai for 46 years. And in the last two years, it expanded to 48 outlets across Tamil Nadu and Bangalore.

LEARN TO RESTRAIN

So what can they do? The trick is to keep a tight leash on costs.

"One mistake turns profits into losses," says Gupta of Vijay Sales. "For instance, if I estimated a particular product to go out of stock in 30 days and it does not, it will result in a loss."

That is because the retailer will have to offer big discounts to clear out stocks for newer products.

Experts say big retailers need to cut their expenses such as rentals and salaries, increase volumes and manage inventories better.

"Large chains need to adopt a clustered approach, whereby they would treat each city as an independent market and flood it with stores every few kilometres," says Retailers Association of India CEO Kumar Rajagopalan. "That's what local retailers have done and the national guys failed."

Big chains are at it.

eZone will shut 8-9 stores and downsize stores from 15,000 sq ft to around 2,000 sq ft.

The company, which posted a loss of 12 crore in its earnings before interest, tax, depreciation and amortisation for the October-December quarter, will also revive online business and call it New Zone.

"We should be able to rope in a strategic partner and launch New Zone by June-July," says Future Group CEO Biyani. "We may divest some stake to the partner."

eZone plans to move into the franchise model to grow business. Its retail outlets will double up as payment and delivery points for Internet orders. And it will build a centralised inventory to stop having a warehouse for every store.

Videocon's Next has opened 80 franchisee stores in the last six months and streamlined supply chain management. "Efficiency of operations is the key to break even," Next Retail Director Saurabh Dhoot says.

Next plans to focus on the top 500 towns over the next three years when it will double its number of stores from 500 now. "We would be dominantly present in smaller markets," Dhoot says.

Expansion in smaller towns and cities, where the demand is on the rise and cost of operations is less, is something most retailers plan.

Reliance Digital says it will expand to Ludhiana and Jaipur and improve customer service and experience to drive sales. Besides installing durables for consumers at their homes, the firm undertakes maintenance of all durables at a consumer's home, no matter from where they were bought.

"This could eventually turn out to be a differentiator for Reliance Digital," a company official says.

CONSOLIDATION LOOMING?

Multi-category retailer Spencer's Retail has reduced the space allocated to electronics from 15% to 10% in its hypermarkets. "It is important for us to carry the electronics category as we are in the hypermarket business," says Spencer's Retail operations and merchandising chief Mohit Kampani.

A section of the industry says tough operating conditions could trigger a consolidation in electronics retailing. "A few of them (big retailers) may exit the business while others may remain without a strong focus but to sustain their hypermarket operations," says Gupta of Vijay Sales.

Durable makers say big retailers have a space in the premium segment. They account for 14% of flat televisions LED and LCD sold and 12-15% of 350-litre and above frost-free refrigerators, front-loading washing machines, convection microwaves and smart phones.

"This shows top-end consumers are buying more from modern retail," says LG Electronics India sales head Amitabh Tiwari. "The retailers can then develop this consumer segment in the metros rather than selling at desperate prices."

Insiders say big players are here to stay. It's a matter of time before they cut costs, improve efficiency and build scale. Once they are big enough, then they can bargain for higher margins.

Tags:next franchise, reliance digital franchise, ezone franchise, vijay sales franchise, viveks franchise, electronics franchise, electronics retail franchise, electronics store franchise.

Source:2 MAY, 2011, WRITANKAR MUKHERJEE & SARAH JACOB,ET BUREAU

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

How to Increase The Efficiency of Your Franchisees and Get Better Results From Your Franchise Systems.

2011-04-21T15:44:00.000+05:30

The success of any franchise system depends upon how the franchisees within it operate, are harnessed and offcourse led. It is very important to be able to correctly identify the traits of the franchise system and work continually towards enhancing its latent potent.By understanding the psychology of success, franchisors will better understand how to motivate and lead their franchisees.

The studies of the Carnegie Foundation determined three main characteristics of success.

The first ingredient for success is knowledge while the second is skill or the application of that knowledge. The third is attitude, however money and time is consistently focused on skills and knowledge training.

Attitude may even be the most important factor. Renowned businessmen and motivators Andrew Carnegie, Napoleon Hill, Norman Vincent Peale, Maxwell Maltz substantiate that attitudinal characteristics make up 85% of a person’s success while skills and knowledge comprise 15%.

Attitudinal qualities for success include self-awareness which is about understanding the origin of one’s present thoughts, feelings and opinions. The results that people attain in life are governed by the images they hold of themselves in their subconscious minds and franchisees do not realise that what they earn can be limited by their self-concept.

Peak performance and attitudinal training is the means to motivating franchisees toward productive habits. The franchisees that are pro-active, set goals to be more effective, and maintain an ongoing attitude of positive expectancy will be the most successful. These franchisees are in charge of their self-concepts and understand the psychology of success.

The principles of the psychology of success can be used to attract, evolve, and keep exceptional franchisees. Great people are defined by five success factors.

1. Good team players.
2. More concerned with what is right than who is right.
3. Intensely goal oriented.
4. Accept high levels of responsibility.
5. Work is part of ‘identity’

Written goals are the path to self-awareness and this practice will radically elevate performance, sharpen clarity of focus and maintain determination to achieve.

Infact several times, franchisers fail to set the correct profiling for their franchisees, even before they start recruiting franchisees. It is generally focussed around what the franchisee must presently do, rather than being more inclusive on what they could do, once the chain got to a certain size.That search and understanding of the qualities needed to be able to have a great franchise system, enables companies to scale up faster. Instead, the general complaint otherwise is that the franchisees don't perform. Well if you've chosen a nurse to be a doctor, you should'nt expect them to be able to operate, when there is a need.What they will only be able to do is check and pass it if its beyond their understanding.

All of the requisite success components can be taught and franchisees who adopt them, learn to be focused and are goal-oriented are guaranteed to be more productive, successful and fulfilled.

At the end of which, a franchise operating within a industry, will see remarkable results in what it is able to achieve through this invaluable force, they have at their command, and which more often than not, is not utilized to even 50% of their actual potential.

Tags:franchise training, franchise network, franchise management, franchise resources, Franchise Recruitment, franchise performance,franchise quality, franchisee profiling, Franchise Expansion

How Age Old Businesses & Heritage Practices Can Use Modern Franchising For Growth.

2011-03-29T11:21:00.000+05:30

Most of our traditional businesses today are undergoing rapid transitionary make overs.While the core remains the same, the way customers are attracted and served have moved on.Most entrepreneurs who have been able to embrace these changes quickly, have been able to outpace their competitors or their peers, in some way or the other.While others have looked back to tradition and heritage to carve out multi million dollar businesses. A case in point being the ayurveda companies in their modern avatars, the yoga classes for fitness and many more.Another traditional art form of henna drawing has now turned into a big business for this entrepreneur.

Fathiya Ahmed decided almost a decade ago that heritage would be the key ingredient to her future success.

The aspiring entrepreneur set up a tent at Jumeirah Beach Hotel in Dubai to display her proficiency in the art of henna painting.

As Ms Ahmed's small business caught on with nationals, tourists and expats, she began to expand the brand, Heritage for Henna, by opening other locations at luxury hotels in Dubai such as the Burj Al Arab and Le Royal Meridien.

Pretty soon it was hard not to notice her shops, which are as small as 4 square metres, popping up in Abu Dhabi hotels and more recently near the entrance to Ferrari World Abu Dhabi.

Today, Ms Ahmed says her franchise is expanding beyond the more than 50 locations that have opened in the UAE and into the UK, Egypt and Kuwait, with interest brewing in other countries. "When I started everyone said 'it's henna'," says Ms Ahmed. "It was a very small idea. I wanted to make it a business."

Expanding a small idea into a home-grown franchise from the Mena region is by no means easy. The franchising industry here has consisted largely of business professionals looking to import successful food and beverage brands from the West.

But players in this market have recently started diversifying into other fields with a "distinct" move away from the restaurant sector, according to International Expo-Consults, which organised the Franchising Middle East exhibition this month in Dubai.

While this shift has helped to spark interest among some aspiring franchisers in this region, there are still plenty of hurdles to overcome.

Most start-ups struggle to find a business model that can be easily duplicated and remain profitable, says Chirine Ajami, the managing partner for FranCorp Middle East, a consultancy based in the US that has helped to develop more than 3,000 franchises globally, including Ms Ahmed's.

Heritage for Henna is a pretty good template, says Ms Ajami.

"Everything was duplicated - the store, the service, the concept, the operational manual. Everything," she said.

Local business professionals should also be prepared to wait much longer to secure storefront property within Mena, compared with more developed countries.

It takes an average of between three and six months to expand to a new location here, compared with just one to three months in the US, according to FranCorp.

And contrary to popular belief, property prices may not have fallen in all markets within Mena or the UAE, particularly in prominent spots, experts say.

Regional unrest is also adding a layer of complexity. One businessman who was planning to display his company's offerings at this month's exhibition in Dubai was not able to ship his merchandise in time.

"With the unrest, he couldn't get the shipment out," says Jacob Sebastian, the head of corporate planning and finance for International-Expo Consultants.

Still, says Mr Sebastian, that did not stop the businessman - or others in the region - from attending the event to meet international partners who may want to import a piece of Mena to consumers in the West.

Similarly there are several businesses that are embracing the franchise route in the developing countries of the world and we can soon look at brands being franchised from these countries into the developing franchised economies.While a Macdonald s and a Subway are moving from the US to all parts of the world, brands like heritage for henna could make way for a global expansion.

Tags:idea franchising, small business franchising, business franchise, franchise business, franchise model, francorp,franchise my business

Source:Neil Parmar, The National AE, March 29, 2011.

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Small & Medium Sized Businesses Increasingly Use Internet To Grow Their Businesses.

2011-03-28T16:51:00.001+05:30

Visit click.in, a general online classified site, and you will notice a host of enterprises that have posted ads, inviting franchises for play schools, business partners and so on.

Enter virtual reality platforms such as Secondlife and the Indian version, Gojiyo.com, and you will find several Indian SMEs have taken the bold step of test marketing their products here to gauge reactions before they launch them offline in the real world.

On Facebook, cake shops and florists are thriving, generating leads and instantly converting them into buys.

All these examples reflect the findings of two recent studies which show that more and more small and medium enterprises (SMEs) in India are getting savvy about using the Internet to market their wares.

A study by Google India to understand usage patterns of the online medium among the SMEs in India showed that over 57 per cent of the SMEs surveyed used their Web site as a sales channel and got direct business leads from their Web site.

Meanwhile, in its Vision 2020, Implications for MSMEs report for FICCI, consulting firm Grant Thornton has quoted an Internet and Mobile Association of India (IAMAI) survey that says 73 per cent of MSMEs (micro, small and medium enterprises) in India have their own Web sites. And, 99 per cent of MSMEs use online B2B (business to business) marketplaces to generate business.

While these reports sound encouraging, FICCI's Sanjay Bhatia, who chairs the chambers' MSME committee, believes that ICT exposure is still inadequate. With over 35 million SMEs in the country, producing Rs 20 lakh crore of goods and services every year, there's much more that can be done online, he feels.

“Having a Web site is one thing. But how you market the Web site, how it shows up on searches, is it optimised, are you on the right platform — this kind of knowledge is still lacking,” says Bhatia.

Sridhar Seshadri, Head of Online Sales, Google India, admits that the absolute number of SMEs with an online presence is very low compared with actual businesses in India. “But, we're pleasantly surprised to see increasing understanding amongst Indian SMEs to use the Web for business growth,” he says.

A COST-EFFECTIVE MOVE

Sanjay Bhatia feels that ICT exposure can help SMEs in two ways — one, in terms of marketing, and second in terms of introducing operational efficiencies in running their business.

Spends by SMEs on the Web are certainly rising. The IAMAI report says 45 per cent of the total annual marketing budget of the MSME companies in India is now spent online. The Google India report says that SMEs with marketing spends of between Rs 25 lakh and Rs 70 lakh per annum tend to spend higher on the online medium and rely less on traditional media such as print and television. But majority of the spends (43 per cent) comes from SMEs who spend between Rs 12 and Rs 25 lakh on advertising on an annual basis, reflecting the low-cost benefit of the Internet.

“Targeted advertising through social networking and blogging sites have provided the right platform for a number of companies to reach out to its prospective customer base more cost-effectively,” points out the Grant Thornton document.

In the Google survey, 785 SMEs (owners or marketing heads) were interviewed across India, including Mumbai, Delhi NCR, Ludhiana, Kolkata, Bangalore, Chennai, Coimbatore, Hyderabad, Ahmedabad, Surat, Cochin, Pune, Nashik and Nagpur.

Going forward, Google India's bet is that SMEs from Retail, Apparel and Travel & Tourism sectors will be the biggest contributors to online advertising in the future while search engine advertising and online classifieds, as a category, will see an uptick across industries.

Right now, the study finds that SMEs from Services, Manufacturing and Export vertical are the most active in online advertising with over 65 per cent using search engine marketing.

But Bhatia feels much more needs to be done to create awareness on ICT's benefits among SMEs. “In terms of marketing, yes, the SMEs are now using digital tools, but in terms of using ICT to become more efficient — be it SAP systems or other tools — awareness is still lacking,” he says.

Yes, costs are a deterrent, he agrees, but this is certainly an opportunity area for the IT firms to create tools that are locally relevant. “We are looking at these kind of programmes, taking along solutions providers and making them interact with different kinds of clusters or industrial estates,” he says. “With GST (goods and services tax) set to come in, and all of us looking at how everybody integrates with this, creation of IT tools could be of help,” concludes Bhatia.

Source:The Business Line, March 28, 2011.

tags:internet marketing, Franchise Marketing, Web Marketing, Social Media Marketing, expand business, grow business, Franchise Expansion,find franchisees

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses using effective franchise marketing and business growth tools.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Common Obstacles To Expanding Your Business ? Find Solutions. Franchise Your Business.

2011-02-28T16:03:00.001+05:30

Introduction:

Most small and medium sized businesses face huge challenges to get to the next orbit. Business owners are predominantly too involved with the day to day operations or have scarce resources, limiting their vision to working from inside the business, rather than strategizing its future growth. Most of them are generally aware of the challenges, and what they foresee, as they must do to survive or to grow to the next level, but are unable to action it. They often reach out to professional business consultants who work alongside their business and help them evolve. The business article below poses the most common business challenges, and what they must do, to take it to the next level. How they can grow their businesses into a successful franchise with multiple business units across various geographies.

Brief:

Business owners are confronted with many challenges while trying to expand their businesses. We meet 100's of business owners every month, and most of them have different obstacles, which they feel, are important to address first, before they expand their businesses or want to understand as to how they can move forward and expand their businesses before competition or changing market dynamics may change their line of business and their positioning.

For some, it’s the difficulty of establishing the business in a new city or town while still running the business at home. “There’s just no way that I can spend enough time in Mumbai to get the business there up and running and still spend enough time in Delhi to stay on top of things”.

For others, it’s the difficulty of retaining employees who spend a lot of time on the field. “I can’t hang on to good sales people for more than a year or two, how can I ever hope to have a sales force to cover the whole country”.

For many, it’s the difficulty of raising sufficient capital. “I just can’t afford to invest Rs 50 Lakhs in each new outlet”.

A few also, don’t feel like they can trust others with their ways of doing business, secret ingredients of their business, or working with strangers who would not conduct their own business like they do themselves. The other day there was a business owners who has been running their generations old business, whose customers were legends like Mahatma Gandhi and now Lata Mangeshkar...but they are very scared as to how others will follow their business systems and satisfy customers who rely on the brand so heavily.

Or it may be the frustration of managing and motivating staff from a distance. “No matter how many times I tell them how to do it, they never get it right!”

Obstacles like these can often be overcome or even avoided altogether by opting to expand the business through franchising, effectively licensing somebody else to operate a business for you with your support.

But there are prerequisites:

1) A successful, profitable business with a decent balance sheet and other credible information to demonstrate success.

2) Proof of acceptability with consumers in at least one location.

3) A core value that you can offer franchisees. This may be one or, ideally, more of the following:

• A well-known brand with a recognized trade name and logo. (Not necessarily well known across the country, but could be successful in a city.)

• Knowledge of an innovative process for producing a product or selling it or providing a service.

• Access to specific articles, presentations and other written content.

• Exclusive access to suppliers of unique products or equipment or services.

• Thorough, proven systems and procedures describing how all aspects of the business are carried out.

4) You must be able to offer advice and guidance to help the franchisee set up and run their business. This may be offered through a written Franchise Operating Manual or Franchise Operations procedures or guidelines to begin with, formal initial training, ongoing training program, regular review meetings and informal get-togethers.

With this in place, you’ll need to work on the following to turn your successful business into a successful franchise:

1)You must be prepared to transform your thought process of running your business hands on, to being able to train other people, to run your business, your way, while you focus on franchising your business and your franchisees on running the front end of the business. You then start assuming responsibilities of working on things that add value to the entire businesses franchise system from the backend.

2) You must have a Franchise Operating Manual that describes in detail how each and every aspect of running your existing business is carried out. This becomes the blue print for future replica businesses run by franchisees. The franchise operating manual is often backed up with a training program for the franchisee and staff.

3) You’ll need a carefully designed fee structure that provides the right incentive to the franchisee. The most common arrangement is that the franchisor receives a sign-on fee up-front and a monthly management fee, either fixed or a percentage of gross sales. Often the franchisor also receives a marketing contribution. This will differ from business to business. The fees should be set at a level that allows a franchisee to make an attractive return on investment.

4) You’ll need to ensure that your proprietary marks and designs are protected. At its simplest this may involve registering your logo as a trademark. But you may also decide to take out patents or register copyright for any products or critical processes that you use in the running of the business. Registering the website and the online identity of the business is also important to ensure that you are able to protect your brand for clients reaching out to you from the web or searching you through those mediums.

5) You should consider what level of ongoing support you can provide. This can range from one to one review meetings to quarterly franchisee meetings where new business ideas are shared. Many franchisors run a nationwide marketing campaign. The best franchisors continue to develop new products and services to maintain the ongoing value of the franchise to franchisees.

6) Last but not least, you’ll need a comprehensive Legal Franchise Agreement that defines the obligations of the franchisor and the franchisee, outlines the resolution process in the event of disagreement and protects your business in the event of dispute or termination.

Of course, most businesses do not have all of the above in place. But with a little effort and attention to detail any successful, structured business can be developed into a franchise that can be replicated over and over again.

The above is intended only as a general introduction to franchising your business. An initial evaluation by an experienced franchise consultant will help you establish what needs to be done exactly for your business and to put a plan in place to franchise your business. Over the last 10 years of our work experience with several small, medium and large sized businesses, we have realized that each business has its own criticalities and it has to be franchised from their own individual strengths and weaknesses view point, while the above will form generalized requirements for most of them.

Please reach out to us for a free 'expand your business' one to one confidential discussion, where we will be able to throw light on how you could grow your business from one to many, by a tried tested proven franchise your business approach.

tags:business challenges, business development, business obstacles, expand your business, Franchise Consultancy, Franchise Consultants, franchise your business, how can i expand my business

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

78% Companies Plan Business Growth Through Acquisitions Over The Next 3 Years.

2011-02-17T12:37:00.001+05:30

An increasing number of businesses are planning to expand through acquisitions, according to the Grant Thornton International Business Report. In its latest global study, the proportion of respondents anticipating an acquisition in the next three years rose to 34 per cent this year, an increase of eight per cent over the previous year.

As far as India is concerned, this has increased to 41 per cent, up 19 per cent over 2010 and 11 per cent over 2009.

Harish HV, partner, India Leadership Team, Grant Thornton India, explains: “At a time when economic and financing conditions are improving and as the mindset shifts from survival to strategic growth, businesses are again looking at acquisitions as a means to grow revenues. They have also begun to realise the benefits of their past acquisitions.”

Among the 41 per cent Indians planning an acquisition in the next three years, the motivational factors for growth are access to new geographic markets (64 per cent ), acquiring new technology or established brands (58 per cent), building scale (55 per cent) and access to low-cost operations (37 per cent). According to the report, there’s been a noticeable shift in preference from last year, when acquiring technology or established brands (57 per cent) was the key factor. This year, there’s been a 20 per cent jump in access to new geographic markets, making it the most sought-after medium for growth.

Mahad Narayanamoni, corporate finance partner with Grant Thornton India, believes this reflects a coming-of-age of sorts for Indian businesses. “Indian companies are now more experienced in dealing with overseas M&A transactions and are considered serious contenders for acquiring global businesses. Acquiring global brands, gaining access to overseas markets and leveraging new technologies for Indian markets are the key drivers for outbound acquisitions by them,” he said.

Globally, 69 per cent businesses plan to finance their growth through retained earnings, followed by bank finance at 59 per cent. However, 70 per cent of them depend on banks to finance growth. Only 48 per cent rely on retained earnings, followed by private equity (22 per cent) and public listing (10 per cent).

Harish HV believes this is because Indian companies have significant debt capacity compared to global peers. Also, given the past level of accruals and reserves, they have the leverage to raise more debt since they haven’t been hit too hard by the global financial crisis.

Tags:Acquisitions, business growth., business in new geographies, business plan, expand business, finance business, grow business, Mergers, mergers and acquisitions

Source Business Standard/ Bangalore February 17, 2011

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Quiznos Subway Sandwich Franchise Brand Signs India, Signals First Outlet This May.

2011-02-04T15:57:00.000+05:30

Hot on the heels of the recent Starbucks alliance with the Tata Group that could eventually see the coffee retailer open outlets in India, Colorado-based subway sandwich chain Quiznos says it expects to open its first outlet here in the summer.

The chain, which has tied up with Hyderabad-based businessman Arjun Valluri as its franchise-holder for India’s southern region, expects to be in that city by May this year, according to Mr. Valluri.

“Our strategy is going to be 20 [outlets] in the next three years,” said Mr. Valluri, who runs several food-and-beverage businesses, including a line of sports bars.

Initially they’ll be targeting the returned NRI, or non-resident Indian (Mr. Valluri is one himself), and the IT office lunch crowd in the city, which has become a major tech center after Bangalore. Mr. Valluri said they will also be looking at opening outlets on the campuses of IT firms.

“Our strategy will be to go after larger corporates like Infosys that have food courts,” said Mr. Valluri.

India already has Subway, but Quiznos hopes its sandwiches—which are heated through rather than having only the bread toasted—could give the Denver firm an edge with customers who are partial to hot meals.

This is the second time that India’s been expecting Quiznos—trade reports in 2009 said that a firm called JIP Fashion & Restaurant was going to be opening Quiznos outlets in India, but so far there aren’t any. JIP couldn’t be reached for comment.

Like McDonald’s with their McAloo Tikka, Quiznos will be Indianizing their menu too.

“We are very keen on adaptation,” said Lee Vala, head of international development for Quiznos. “Business does not get done the same way in the U.S. as in India.”

Mr. Vala said Quiznos chefs had already been to India and Mr. Valluri was presently in Denver taste-testing possible India menu offerings, including at least eight vegetarian subs. There won’t be any pork or beef and there will be strict segregations between their vegetarian and non-vegetarian options, he said.

“All the way from farm-to-fork there’s going to be a clear segregation between meat products and vegetarian,” said Mr. Vala.

Some of the offerings they’re considering—paneer tikka and tandoori chicken—sound more North Indian than South Indian to us, plus we’re pretty sure Subway at least serves the first. But even we’d be stumped at how to offer the sandwich versions of idli-sambar, dosa or dahi-vada. Still, perhaps for Hyderabad, there’ll be a special line of sandwiches inspired by the city’s Nizam cuisine. Nahari breakfast sub, anyone?

Tags: arjun valluri,quiznos franchise, quiznos, sandwich franchise, sub franchise, JIP Fashion and Restaurant, Lee Vala, fast food franchise, international food franchise,

Source:Tripti Lahiri, Wall Street Journal, 3 Feb 2011.

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Disruptive Innovations and Franchising Heralds Socially Relevant Economic Projects

2011-02-04T15:44:00.000+05:30

How services firms in India are using disruptive innovation

The main hurdle lies in setting the price platform to win over consumers to low-cost services

New Delhi: In 1995, a Harvard Business School professor named Clayton Christensen first wrote about what he termed disruptive innovation: “A process by which a product or service takes root initially in simple applications at the bottom of a market and relentlessly moves up the market, eventually displacing established competitors.”

The quest by manufacturing companies to reach out to poor customers by persistently dropping prices is a well-known story. It is now the turn of service companies to walk down the same path. Over the past five years, a clutch of entrepreneurial companies has emerged in India to challenge existing business assumptions and offer quality services at low prices—delivering healthy newborn babies in hygienic hospitals; employing deaf adults to deliver packages; washing, drying and ironing clothes and linen; transporting the sick and injured to private or government hospitals in ambulances.

Village Laundry Services’ Chamak, the wash-dry-iron-deliver start-up, is Innosight Ventures’ first incubation in India with an investment of $1.5 million in 2007

In order to win over consumers to such services offered by such enterprises, setting the price platform becomes the most important task. “If price is to be the basis of competition—as it so frequently is in emerging markets—first establish the competitive price and create a rough cost structure. Then work backwards to determine what processes and resources are needed to meet the price requirement. Careful observation of customer needs will allow you to offer unique value tailored to the local market, even at low prices,” wrote Matthew J. Eyring, president of Innosight, a consulting firm started by Christensen, in a Financial Times blog in January.

This is what was done at LifeSpring Hospitals Pvt. Ltd, which tries to bridge the yawning gap between the substandard maternity services offered by underfunded public hospitals on the one hand and expensive ones available in private hospitals on the other.

Anant Kumar, chief executive officer of the Hyderabad-headquartered company, was working at Hindustan Latex Family Planning and Promotion Trust, selling condoms and pills to stop unplanned pregnancies, when he came face to face with “the crumbling government infrastructure” where the supposedly free maternity services could be accessed only after paying “bribes to security guards and nurses”.

Kumar had the business model of low-cost airlines in mind when he sought help from audit and consulting firm KPMG to offer low-cost and high-quality maternity services. The nine LifeSpring Hospitals in Andhra Pradesh charge Rs4,000 for a normal delivery, compared with the Rs6,000 charged by small nursing homes and Rs30,000 by large corporate hospital chains, he says.

Acumen Fund, which invests in businesses that focus on their social impact, has invested $1.9 million (around Rs8 crore today) for a 50% stake in LifeSpring Hospitals. Funding from Acumen and 50% ownership by HLL Lifecare Ltd (formerly Hindustan Latex) has helped the firm grow from its opening in 2005 to nine hospitals today.

There are other more independent ventures such as Dhruv Lakra’s Mirakle Couriers, which he quit Merrill Lynch to start and run in Mumbai in late 2008. Lakra employs 63 deaf adults and two able-bodied professionals (the reverse ratio for such employees is prevalent in a typical Indian company). Lakra says he has steered clear of investors because he did not want the fact of having to give commercial returns make him lose sight of his main objective, which was to help the six million deaf people in India.

Lakra is managing a cash break-even, self-funded venture, started with Rs10,000, which is still to turn profitable. Christensen has ascribed this problem of “too much capital” in an interview he gave to Newsweek on 18 August 2010, saying: “The more capital, the longer a company can go without testing its fundamental assumptions.”

Dedicated funds such as Acumen Fund do accept a lower return over a longer period of investment. Robert Katz, portfolio associate at Acumen Fund, says: “They (LifeSpring Hospitals) showed they could apply tools of business to high quality, low-cost maternal care for which there is a huge need. It is true that we push out the projections from time to time, but that is to ensure we have the desired unit economics such as revenues from each hospital in place before replicating the model.”

In the meantime, LifeSpring’s first hospital at Moula-ali in the Malkajgiri locality of Hyderabad has captured 48% of the baby delivery market in FY10 or 1,300 deliveries, according to Kumar.

Innosight Ventures, which funds firms venturing into disruptive innovation, was here in India when the Tata Nano—undoubtedly a disruptive innovation—was being showcased, and was amazed at the potential that such companies had in India and also the rest of Asia.

Speaking on disruptive innovation, Scott D. Anthony, managing director of Innosight Ventures and a student of Christensen, says that services companies are “more likely to develop compelling offerings as they have no choice, but to innovate the business model”. He compares this with the “trap that product-based companies often encounter, assuming that winning in emerging markets is all about trying to meet lower price points without asking whether the target consumer will consider the resulting product any good”.

Village Laundry Service Pvt. Ltd (VLS), the full-service wash-dry-iron-deliver start-up that is much cheaper than boutique laundry services and more hygienic than the roadside dhobi services, is Innosight Ventures’ first incubation in India, done in 2007 with an initial investment of $1.5 million.

While VLS’ Chamak, Mirakle Couriers and Pronto Franchising Pvt. Ltd, or Mr. Pronto, (a Chennai-based shoe repair chain) do not explicitly target the working poor, they all employ workers from this population who, in turn, can act as spokespersons to the community they represent. In India, a common problem for firms targeting the working poor is the suspicion of the target consumer. Kumar of LifeSpring Hospitals says that his patients although exploited by the government hospitals are suspicious of the LifeSpring Hospitals offering because simply put they think it is “too good to be true”.

In the case of 1298, an ambulance service founded in 2005 and funded by Acumen Fund, it was simply raising awareness that “calling for an ambulance with medical equipment and paramedic support is better than rushing unaided to the hospital”.

These problems, though, are not a deal-breaker. Applying disruptive innovation seems to be a no-brainer in an emerging market such as India, where its enormous middle class and working poor population deserve an improved quality in and access to basic amenities. Innosight Ventures’ Anthony points out that even large organizations are adopting the disruptive innovation model such as Procter and Gamble Co., whose low-cost razor Guard was launched in India this past October as a substitute for “hundreds of millions of Indians who use double-edged razors”. Disruptive innovation is going to influence companies large and small, global and local, and going by his comments sitting on haunches is not an option.

“Many of the most powerful Indian companies grew by disrupting higher-cost Western competitors—Infosys is a great example of this. Western companies are fighting back on those companies’ home turf. Consider General Electric’s well publicized ‘reverse innovation’ efforts, where it develops new medical devices that are attuned to the needs of lower-income customers in emerging markets. Wouldn’t it be a twist if the emerging giants lost the battle on their own turf? If they don’t frame their domestic markets in the right way, they just might,” he adds.

Tags: lifespring hospitals, chamak franchise, Innosight Ventures, acumen fund, dhruv lakra, mirakle courier, robert katz, Innosight Ventures, scott d anthony, pronto franchising, pronto franchise, pronto

Source:Live Mint, Malvika Chandan, 3 Feb 2011.

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Rural Franchising Model Takes Off In India. Future Group To Penetrate Rural India Through 20000 Franchise Outlets.

2011-01-21T12:49:00.000+05:30

Future Group plans wholesale storesin rural markets

After establishing successful urban retail chains such as Big Bazaar and Food Bazaar, Kishore Biyani-led Future Group now intends making inroads into rural markets by opening 50 wholesale stores in four years.

The group also plans to enlist some 20,000 franchisee outlets in villages that would be serviced by the wholesale stores, according to two executives who requested anonymity as the project is still in its early stages.

These outlets will be based primarily in district headquarters and supply to around 300 franchisees each.

It has already started enrolling village franchisees through its rural retailing subsidiary Aadhar Retail Ltd, in which the group bought a 70% stake in 2008 from the Godrej Group.

Aadhar Retail currently operates 51 stores in Maharashtra, Gujarat, Punjab and Haryana. It now intends to convert the larger shops in the four states into wholesale stores, with the rest selling directly to village consumers, the executives said.

A Future Group spokesperson declined to comment.

In a departure from its policy of operating company-owned stores, the Future Group is taking the franchisee route for the rural markets for two reasons.

“Local rural market entrepreneurs will understand their market better,” said one of the executives.

Secondly, the rural market is “too widespread” for the company to operate and manage stores on its own. “The franchisee will be able to build relationships with the customer more than we do,” the second executive said.

“We have the supply chain and buying capability. We have volume on our side. What we need is the last man and the customer connect,” he added. “The franchisee is supposed to deliver these two.”

With the rural wholesale stores—which will come up in spaces ranging from 15,000 sq. ft to 20,000 sq. ft—the group is looking at an avenue to push its own affordable private labels in villages.

The wholesale outlets will sell about 1,200 different items or stock-keeping units that are relevant for rural consumers.

The franchisee model could be sustainable as it would keep the company’s cost under control, according to Pradeep Kashyap, chief executive officer of rural markets consultancy MART.

The spend on consumer goods and packaged food is growing rapidly, making it a good time for the company to enter the rural markets, he said.

“The kind of categories that organized retail normally carries is what a consumer in rural India is now looking for,” said Kashyap.

In the past two years when urban markets were reeling under an economic slowdown that hit India in late 2008, rural retailing was growing at an annual rate of 25-30% in the past three years, according to Vikram Shriram, managing director of DCM Shriram Consolidated Ltd that runs 275 rural shops across India.

The primary reason, according to Mart’s Kashyap, is that the rural economy has been thriving in recent years, thanks to rising incomes through better prices for crops as well as the government’s heavy spending in social sectors.

Source:Rasul Bailay,Live Mint,Fri Jan 21,2011,New Delhi

Tags: Franchising Rural India, franchise model rural india, franchise model villages, rural marketing, rural shops, town franchise model,franchise model smaller cities,town franchisees.

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Franchising Is the Only Solution To India's Vocational Training & Education Industry Growth

2011-01-17T14:18:00.000+05:30

With over 26 million graduates to be trained, more and more companies are launching skill training ventures

IL&FS will set up 100 ITIs in the next 5 years

Bharti Group's Centum Workskills to train 12 million people in 11 years

Kolkata-based Globsyn group to train 352,000 youth in the next decade

These are just three of the 18 joint ventures with the private sector that the National Skill Development Corporation (NSDC) has formed in its over one year existence.

Vocational training, the erstwhile CSR activity for companies, is now seen as a profitable venture. And the interest from private sector is evident— a market size between Rs 3 lakh crore and Rs 5 lakh crore to cash in on by delivering skill training.

Consider this: As per data from the planning commission, around 2 per cent of existing workforce in India has skill training against 96 per cent in Korea, 75 per cent in Germany, 80 per cent in Japan and 68 per cent in the UK.

So India by 2022, needs to create a pool of 500 million skilled workers against the present 40 million. “With around 50 existing players (including NGOs and local skill training institutes), there is room for 250 more such organizations,” says Dilip Chenoy, Chief Executive Officer and Managing Director, NSDC.

NSDC— which was set up under the Centre's 11th Five-Year Plan with seed capital of Rs 1,000 crore from the government-- has a mandate to train people in 21 sectors identified by the government.

Against 12.8 million per annum new entrants to the workforce the existing training capacity in India is only 3.1 million per annum.

This shortage explains why the sector has seen emergence of companies like — IndiaCan (an Educomp and Pearson venture); Indiaskills (A manipal and UK-based City and Guilds venture); Teamlease and Indian Institute of Job Training and Aspire Human Capital Management.

These companies offer programmes ranging from operations in banking and insurance, sales, retail, information technology; soft skills and English learning.

“The opportunity in the market space is huge. Vocational education at present is over $2 billion market. IIJT is focusing on curriculum, relevance and fungibility. We at present focus on courses in accounting and finance, hardware networking, retailing and customer service,” says Ashish Prasad, CEO, IIJT.

TeamLease Services and IIJT, have joined hands with the Government of Karnataka to create the Karnataka Employment Center (KEC), an employment exchange based on a public-private partnership. KEC will deliver the full range of services covering registration, assessment, counseling, training, certification and placement to ensure successful access to the job market for the youth of Karnataka. Teamlease and IIJT will also train and place 60,000 tribal youth in Gujarat.

However, these companies have an uphill task ahead. As Amit Bhatia, CEO Aspire Human Capital Management puts it, “India created a caste system in skills and branded vocational training as shudra of the system. The challenge at present is to restore the respect of vocational training. India, in this segment, needs to learn from Germany, Switzerland and Australia which have the best vocational training processes in place.”

Bhatia founded Aspire in association with 28 CEOs and strongly believes the Industrial Training Institutes (ITIs) system needs to be scrapped and vocational training being imparted at universities.

In May 2010, Aspire raised Rs 20 crore from US-based Foundation Capital. According to Bhatia, the vocational training market is very dysfunctional with no example of a successfully scaled company yet. “The government is working on a vocational training framework. Once that is out, it will be game changing for the sector. Winners in this sector are not yet born,” adds Bhatia.

Probably that is the reason why private equity players and venture capitalists are watching the space keenly.

“It is an unregulated sector and a huge market at the same time which facilitates the entry of private equity players. However, quality of training lacks. There are limited examples of scaling up which can happen only through franchising. Over the next decade, we see investments in this sector growing,” said Sandeep Aneja, managing director, Kaizen Management Advisors

These players charge anywhere between Rs 1000 and 10,000 based on the kind of courses they offer. Revenue model is largely through students; institutional training for government and training for corporations.

While most players have introduced courses only in finance, retail and soft skills, huge skilled workforce is required in agriculture, manufacturing and services sector which have not been addressed so far.

Tags: centum workskills, globsyn group, nsdc, vocation training franchise, indiacan, indiaskills, teamlease, IIJT, aspire human capital, kaizen management, vocation education franchise.

Source:Business Standard/ Kalpana Pathak / Mumbai January 17, 2011, 0:58 IST

Plan Your International Franchise Expansion & Business Development in 2011.

2011-01-14T17:52:00.001+05:30

Every business today looks at reaching out to more and more consumers and across various geographies.If you are the Chairman, CEO, or Managing Director of a franchise company you must remain in control of your franchise network. You are the captain of your franchise ship and, as such, you will need to have a very clear navigation plan as to where you are going and how you are going to get there. In the same way that you do not get started before you know where you are going, as a franchisor you need to have a thorough understanding of the marketplace you are targeting for your overseas expansion and the type of franchise partner that you will be seeking. To ensure that this is done correctly it is strongly advisable that you speak to a franchise consultancy company to produce for you a detailed pre-entry study and to work closely with you in guiding you appropriately as to the correct entry procedures, detailed legal frameworks and the necessary brand and intellectual property protection measures in international markets.

Apart from speaking to professional franchise consultants, there are other organisations like the franchise association of India (FAI) that can help you with planning your franchise strategy.

Visit Your Desired International Markets Of Expansion.

You should not only engage the services of a franchise consultancy company but should also visit the country that you are targeting for expansion so that you can experience the culture and likely demand for your product or service. While you should always invite the prospective Master Franchise Owner to come and visit your company, it is also recommended that you should try to visit your prospective partners at their own offices and spend time personally evaluating the market before making the decision to award your Master Franchise rights. A good time generally is taking part in one of the franchise exhibitions or trade shows, where you could get to showcase your business to a lot of serious franchise prospects and get valuable feedback from the market.

By expanding your franchise internationally through franchising you will save considerable time and money because it will be your Master Franchise Owner who will be investing their time and money into the strategy. Their market research will also help you to better understand the challenges that they may be experiencing.

Some Master Franchise Owners may well decide that having piloted your business in their country they may decide not to sub franchise. This frequently happens due to the strengths of certain Master Franchise partners. Mothercare is a classic example, with its Master Franchise Owner the Alshaya Group in the Middle East and all of their 200 stores are in fact company owned by the Master Franchise Owner.

Localized Strategy and Customer Connect Initiatives

While you may have Master Franchise Owners representing your brand in other countries, you should still explore ways in which you can receive feedback from the end recipients. As your customers in India like to be asked their opinion of what you are offering, you should extend this into international markets so that you understand that there is always a difference between one market and another. The fact that you are making the effort to find out about international customers will always be appreciated.Also it has been seen that customer connect enable localisation.Marks and Spencers in India, today have more than 70% of their produce manufactured locally and have ensured that they have brought their costs down considerable on one hand and on the other, they work on local traditions and festivals like Diwali, Rakhee etc to make that connect strong.

Professional Advise

Exporting your franchise requires the very best expert advice and guidance at all times. It is encouraged that you to take full advantage of the FAI advisors so that they can provide you with a great deal of basic and important information at a very realistic price. The network contacts can then assist the Master Franchise Owner with a certain amount of further advice and guidance once they are established. However you need to recognise that they are there to assist rather than to provide continual support services. This is your responsibility and not that of any third party.

By taking full advantage of the FAI services you can often save considerable money since there is no way that you would be able to engage the services of any company or any other organisation and receive so much information for the amount being charged. When this information comes back, you and your international franchise consultants are in a much stronger position to understand and recommend the strategy for successful entry and development of your business in the targeted market. You could then get a clear view of where you want to steer your ship and the exact path that you need to chart out for your business, while you get readied for international franchise expansions.

Tags:FAI, find international franchisees, Franchise Association Of India, Franchise Consultants India, International Franchise Consultants, international franchise development, Master Franchise

Indian Health Care Industry Offers Tremendous Growth & Business Opportunities

2011-01-14T17:20:00.000+05:30

Growing population, increasing affordability, comparative cheaper treatment costs as opposed to the west and medical tourism thereof, increased health insurance penetration, increased patient awareness, out-of-the-box unconventional thinking by the healthcare players for better operations, government opening up its arms to PPP and even providing tax holidays will be the key factors to look out for which would drive the future of healthcare in India, according to Dr Akash S Rajpal, Head, Consultancy Services, HOSMAC India Pvt Ltd

According to recent studies conducted, the customer's (patient) aspirations are fast changing. Customers are growing more aware of their health needs, demand quick response, less waiting times, and above all - demand nearness of the healthcare unit to them.

Customers though now demand better quality care; they however now do not want to travel much as in earlier days.

And if you notice, the billing and pricing though important, is not a very high priority now as insurance reach is getting stronger (to the tune of 40 per cent among patients visiting a urban hospital).

If this is the window to the future of healthcare, then it leaves immense opportunity for existing hospitals across the country to revamp and re-organise in order to woo back their immediate local drainage population as the competition would heat up soon. The patients would have a lot to choose from, now being insured.

As per various studies including a report by IDFC, and Mc Kinsey, Indian Healthcare industry will be worth $125 billion in the next five years.

Public spending is likely to increase beyond 20 per cent, there is room for everyone in the organised private healthcare sector.

The entities who have noted this advantage to name among the other few are Apollo and Fortis with its cumulative market cap of around $ five billion and may be considered as a reflection of the healthcare scenario of the present and future of Indian healthcare.

India presently has a bed deficit of approximately 30 lakh beds as per the WHO recommendation of four beds per 1000 population. Considering even a 250 bedded hospital on an average, the country would need 12000 hospitals in the near future. As almost 80 per cent of this would be fulfilled by the private players, a huge rise in IPO's and premium commanding players in the arena would flutter bringing in interesting times for the healthcare industry.

Recent spurt in Public Private Partnership(PPP) projects, and thrust on quality by the government sector and its demand (& mandate in some areas) on NABH and ISO, a lot of consultancy business is abuzz with the projects galore in the accreditation and QMS field. India to its credit already has one government hospital NABH accredited and many are in the pipeline. With CGHS making NABH mandatory for care and hospitalisation cost reimbursements, there is hectic activity seen in hundreds of hospitals waking up to the long due need for quality healthcare and applying for the coveted quality mark.

The trend is on a steep rise, and it is just a matter of time when the government launches patient awareness on NABH quality in full swing. This would make the patient demand at least an ISO QMS certified hospital if not NABH.

Good times ahead for healthcare consultants in every sphere be it new projects or existing.

There are various other trends observed which will be discussed in the article ahead, but would discuss challenges and opportunities before embarking on the same which ultimately is linked to the justification on the future trends seen.

Challenges

High capital costs:

Depending on the region and real estate costs, an average hospital requires capital infusion of Rs 40 lakhs to a crore per bed (& even more). Industry estimates suggest that any hospital with capital costs of more than 50 lakhs per bed has high gestation period and even may be unviable. Land and building together account for almost 40 per cent of the total project cost and affects the viability depending on the resulting per bed cost.

Medical equipment:

Contributing to almost 40 per cent costs in a tertiary setup, the medical equipment though cutting edge at the time of purchase poses the threat of inevitable obsolescence within five to seven years of setup. This problem is compounded by the fact the most of such equipment is imported and very few local reputed manufacturers exist.

This will lead to apportioning to higher treatment costs and will further lead to lesser competitive edges and low utilisation rates resulting in an undesired operating margins.

Human resources:

As Dr Prathap Reddy puts it, "the biggest challenge for him and Apollo is filling the void of human resources".

The fast-expanding domestic healthcare industry is the third largest employer, but is severely short of manpower, according to him.

As per ministry of health, there is a shortage of approximately half a million doctors, a million nurses and the deficit needs to be filled in the next five years. Such shortage will lead to exponential salary hike demands, and further lead to high patient care costs.

With organised sector being the preferred choice now, there will be a huge demand even for the skilled and quailed health administrators to run the show. Considering one skilled and qualified administrator is required for every 50 employees, there would be a requirement of almost 50000 such healthcare professionals in the near future.

Highly regulated environment and unrealistic stringent norms and restriction of entry to the private entities in the field of medical education has led to further deficiencies in terms of number of skilled professionals being released for intake by various hospitals.

Conventional models of business:

Rarely an out-of-the-box idea of running a healthcare business is seen. Recent niche segments of single speciality centres (for eg. - focused on OBGY or other specialities (Cradle etc) )have been very few. Even in the public health sector, millions of square feet of space is left unutilised, expensive equipment ill-maintained and lack of skilled professionals adding to the -woe, still do not find adequate initiatives happening towards outsourcing or even PPP.

Almost 90 per cent of private sector in India is run under the unorganised sector. The clinical establishment bill also has faced immense opposition and a professional healthcare consultancy firm guided healthcare business is not still seen frequently.

The conventional model would need to be broken to mitigate the presently seen long gestation periods of five to 10 years of which almost three years are spent in project conceptualisation to commissioning.

The conventional model of healthcare business would need to change to bring in untapped opportunities, operational efficiencies and better profitability. This would also attract better private equity which is now diverted to more lucrative industries.

In the public healthcare sector the infrastructure is provided based on the size of the population instead of epidemiological profile. This many time results in under-utilisation of infrastructure, and ultimately not meeting the demands of the local population and drainage.

Opportunities

Population:

Many would consider that the massive population of India would be a bane. But it has turned out to be an immense business opportunity across industries like telecom, broadcast and healthcare.

The 1.17 billion population of 2009 is projected to reach 1.33 billion in the next 10 years. Of which almost 60 per cent of population is in the 15-64 year age group - which is the active earning population and will primarily drive the industry, especially the healthcare insurance industry which will make healthcare accessible over a period of time to majority of the population.

As India 'shines', and we chant 'Jai ho', the disposable income of Indian families has increased by a whopping 70 per cent since 2004 and is growing at a pace of 10 per cent ever year.

This will lead to increased demand for good quality healthcare even at a premium.

Insurance:

It is estimated that the penetration of health insurance in India is only 2 per cent of the population.

However this figure is expected to rise to a penetration of almost 20 per cent in the next five years keeping in mind the high growth seen in disposable income of the Indian families.

Though this figure is the country's average, the percentage of insured visiting urban private setups even now is in the range of 20- 60 per cent of the hospital admissions.

With better government health schemes surfacing for the poor, excellent example being the Aryogyshree, National Rural Health Mission and kinds, the upkeep of the poor is also not left behind.

Comparative low costs and Medical Tourism:

As per industry studies, almost five million foreigners had availed treatment in Indian healthcare setups by 2008. With surgical cost almost one tenth in western worlds, the estimated 15 billion dollar medical tourism industry will only grow further.

This has led to the creation of health cities and medical tourism hub. Now with immense support of the Indian tourism ministry and its dedicated medical arm, the medical tourism industry in India will grow leaps and bounds.

Budgetary incentives and PPP:

With various tax incentives thrown in by the finance ministry for the healthcare sector and various states realising to the fact that PPP is the best way to bring in quality healthcare at no further costs to them, a huge spurt of activity is seen in terms of new hospital projects launched and PPP initiatives concluded across the country.

The future

Breaking the conventional model of business: The coming years will see a great out-of-the-box thinking by the strategists in the field of healthcare, beginning with the way healthcare is delivered.

To begin with, a rise in retail clinics, single speciality, secondary and tertiary care centres are seen coming to the fore including the recent examples of NOVA day care, BEAMS & Apollo clinics.

Operations and management contracts are being handed over to outsourced partners and the recent example of FORTIS managing SL Raheja is the best I can cite. There are unheard smaller O&Ms run across the country now which will soon become very popular.

The recent trends also show how the hospitals have become quality conscious.Reputed hospitals like Wadia and Masina in central and south Mumbai and others across the country have hired a reputed healthcare consultancy firm to do a quality gap analysis and help them streamline operations and management and suggest ways to bring about better sustainability.

The tier 2/3 cities have suddenly become attractive to the healthcare players, especially because of the tax sops and increasing disposable incomes among Indian families across the country and dearth of quality healthcare infrastructure in these locations.

Specially focused on medical tourism, health cities are audaciously being designed and executed and hospitals with bed strengths of 1500/2000 which were never heard in the private domain are now coming to light.

The shift is also seen towards Brownfield's and JV for a quick entry in the target area, and the healthcare sector has been abuzz with M&A activities of Fortis-Wockhardt, and even acquisition of PPP SPVs in the recently seen Hiranandani FORTIS-Navi Mumbai Municipal Corporation super-speciality project.

Once unheard of, now the non-core operational aspects including laundry, kitchen, housekeeping, security, all are being outsourced, and the primary focus is put on the hard core patient care.

Even revenue centric departments like imaging, laboratory and pharmacy is being outsourced. Recent examples of Piramal diagnostics running imaging centres for hospitals can be cited.

The trend is now seen even in the public health units which have outsourced its imaging, kitchen and other services. Navi Mumbai Municipal Corporation is the best example which outsourced its imaging department, kitchen and housekeeping.

Telemedicine and remote diagnosis is seen as a rising trend, as part of outsourcing model.

The earlier model of hundreds of visiting doctors being empanelled by the hospital is also slowly fading away and the full time practice is taking a preference in choice of clinical operations. Kokilaben-Andheri or Hiranandani-Powai and even the recent Seven Hills-Marol have opted for a complete, or a majority of specialities to have full time consultants on board who do anywhere from 80 to 100 per cent of the hospital patient volumes in the hospital. This is giving an edge to the hospital in terms of streamlining of desired quality, training and patient satisfaction which is very difficult in terms of part time visiting doctors who do not have allegiance to one hospital and may not adhere to the mission of the concerned hospital. This also attracts such specialists even to far of locations as major volumes will be guaranteed in a long run promising better prospects to these professionals. These hospitals therefore could attract skilled and experienced professionals who were already doing well abroad.

With quality standards in NABH introduced for wellness and dental centres, and a huge demand from medical tourists for the same, a chain of such centres will be seen in the near future.

Moreover,with patient awareness increasing the patients not hesitating to take 'second opinion'. Recent opening of 'specialised second opinion centre's have opened and more could be seen in near future.

Franchising models followed by both the public and private, but noticibly by the governments of various states especially in Gujrat, Bihar and Jharkand by partnering with NGOs and individual doctors to provide affordable and quality healthcare on pay per service model and other incentives has proved to be mutually beneficial to all stake holders.

In the private sector, leading healthcare entities have been extending their brand name on a royalty/franchise basis to interested partners to leverage on the brand and attract patients. This is mutually beneficial to both the provider (he gets more patients because of brand) and the brand provider (they earns royalty without any capital inflow)

A rising trend is seen in religious centric hospital trusts coming up, but which are of world class infrastructure. The likes of PAKH, Saibaba Trus etc. This enables the trusts to keep their commitment to the target society and mankind at large and also brings in higher sustainability due to continued patronage of the members of the society and devotees.

Health Insurance

Industry gurus always have been suggesting the best governance when the government does not deliver a product or service, but monitors its quality and ensures that the people get the relevant service or product through able private players. In this case, government policies are seen to be changing and their role in healthcare is seen shifting from healthcare delivery to financing the delivery of care. With their launch of health insurance schemes like Rashtriya Swasthya Bima Yojna, Aroygashree and other similar schemes has tremendously improved healthcare delivery through private players, the schemes will cover millions of BPL patients in the years to come. The government will save billions on the capital costs and HR costs by having the private player invest in the same.

With opening of health insurance to private players, the insurance sector is booming. Especially with rising disposable incomes, and the highest population being the earning age group of 15-64 years (60 per cent of population), the insurance reach is bound to grow from the present meager two per cent to 20 per cent as estimated by industry experts. This will bring in demand for better quality care and a dominant role of insurer on choice of healthcare units for patients in reference to quality and professionalism.

Patients will have a lot to shop around before choosing the 'right care provider' as he will be armed with the vital medical insurance.

Trend in keeping their insured clients healthy, have spurted a trend in providing free health checkups in the policy package so that the clients are detected early for early intervention for various diseases, especially the life style diseases and thus save on immense cost burdens to the insurer in the later future in terms of costs towards treatment of their patrons. This will also lead to a rise in opening of specialised executive health checkup centres as stand alone or in the hospitals in time to come.

Human resources and medical education

IDFC security studies reveals that there is a clear bias within skilled professionals including doctors towards the private sector. About 72 per cent doctors are based in tier- cities (mainly because of lack of incentives, lack of focus on quality standards' and inadequate infrastructure in the public health sector)

Even then, the private sector finds difficulty in bridging the deficit of manpower. As stated above, there is a shortage of 1.5 million skilled professionals including doctors and nurses and administrators. The reason for the same mainly is due to lack of adequate medical education centres and in adequate numbers. Governments have liberalised the utilisation of AYUSH practitioners through a GR into mainstream medical care provision specially in tier 2/3 cities, to bridge their gaps, however the much awaited entry of private players in medical education will bridge the gap further. With recent opening of numerous hospital management colleges, the gap to provide able administrators would surely be bridged and more such institutes will be seen flourishing in the times to come.

PPP activities have been seeing the light of the day by states like Uttar Pradesh(UP) inviting proposals from private partners to help them setup and run medical and para-medical colleges to streamline operations, to bring in a professional insight and outlook and further attract the vital professionals to impart medical education.

Funding and private equity infusion

With the country's healthcare industry poised to grow to 125 billion USD in the next five years, and only two or three major listed companies with a market cap of less than $ five billion existing, there is huge potential for many other players to come in to the fray.

With new conventional model of healthcare delivery and for the first time EBITAS in healthcare reaching the figures of 25 per cent and above in such businesses, venture capitalists and private equity is hunting for the right partners every day.

A leading consultant having head office in Mumbai and various regional office across the continent, has revealed that there is a 100 per cent increase in TEV studies, business plan validations and enquiries for search for JV partners and due diligence.

The growing demand has also attracted a lot of foreign players to venture into the healthcare industry and are hand-holding the existing Indian players in creating a chain of healthcare units not just in India, but in foreign locations too.

Business related to medical equipment, and devices is also growing at a rapid pace, and with more number of hospitals in the fray, this industry and the pharma industry will further grow piggybacking on the rising healthcare demand.

Looking Forward

With the personal disposable income rising by more than 70 per cent and over all income of the population rising, the demand for better quality in healthcare is bound to exponentially rise. With the CGHS mandating the requirement of NABH for all reimbursements, and hundreds of hospitals applying to get the coveted ISQua approved NABH-the mark of international healthcare quality, this is just the beginning.

There is no doubt that the government too is focusing on improving the quality of healthcare delivery in its own infrastructure and the promising beginning is seen with a public unit getting the NABH accreditation in Gujrat and more on the anvil.

With only 20 per cent of healthcare delivery provided through public health units and the government not intending to spend more on capital expenditure, more PPP projects and private healthcare initiatives would see the light of the day.

To bridge the immense HR gap, especially in the clinical and professional side, the government is mooting the idea of corporatising medical education and it is just the matter of time when private run non-trust based medical education on commercial lines will be seen across the country.

Health insurance sector has never seen better days than today and with what is on the anvil. With a population as strength, even the present two per cent penetration to a five per cent penetration would mean millions and billions in business. The projected penetration in the next five to 10 years is 20 per cent of the population, because the earning population of 15 to 64 year age group comprises of more than 60 per cent of the total population who can afford health insurance. And with rising awareness and the acknowledgement that insurance is the way to a healthy life, the demand for medical insurance will only rise further. Trend reveals that at least in the large corporations and private organisations including public sector units, insurance is provided as a norm to all employees. This trend will only substantiate in time to come.

With the increase in population and to bridge the gap of number of beds, hundreds of quality healthcare units will spring up. However, with economy growing, demand for real estate also grows and further leads to making real estate capital investments for healthcare expensive and making operational margins tighter. This will lead to (and already has) in unconventional model of health care delivery by way of single speciality centres, life style units, retails clinics, to bring in operational efficiencies and increase the EBITAs. A lot of earlier untapped models will be tapped and the consumers will have plenty to choose.

With tax sops and other government incentives, more secondary and tertiary care units will open in tier-2 /3 cities.

With quality standards coming on even in AYUSH and alternative medicine, and India's rich heritage already attracting a lot of tourists, medical tourism will see a marked boom in years to come. Health cities with an aim to woo medical tourist is on the rise, and the healthcare players will leverage on the integrated medicine model by providing Ayurveda, Homeopathy, Unani, Yoga and others along with the modern medicine.

This holistic approach will attract patients from far lands further, because the cost of care is almost one tenth the western worlds costs.

Technology will play a major role in bringing quality in healthcare, be it better nursing communication systems, patient monitoring devices or telemedicine to provide low cost diagnosis to remote patients etc.

Companies like HCL, HP and Microsoft are already investing heavily in healthcare technology and Google trying to ambitiously woo the consumers for a centralised healthcare database, what is in store for the future of healthcare is limitless.

Pneumatic chutes, PACS, automated laboratories and other technologies are on the verge of becoming norms in both public and private hospitals.

Tags:Indian healthcare industry,Apollo,Fortis, healthcare franchise model,health care consultants,healthcare professionals, healthcare business, medical tourism franchise,BEAMS, telemedicine franchise,

Source:Express Health Care, 12 jan 2011.

Education Industry On A Cusp Of Reforms

2011-01-05T12:23:00.001+05:30

If 2010 was the year of education reforms, the new year is expected to see the private sector stepping on the gas, finally.

Foreign Universities on Indian shores:
The eagerly awaited Foreign Educational Institutions Regulation of Entry and Operations bill, which has been pending for over four years received the cabinet nod in March 2010. Academics hope that the bill would receive a green light this year. The bill which seeks to regulate entry, operation and restriction of foreign universities in India, requires passage by both houses of Parliament to be instituted as law.

Enabling entry of Foreign Educational Institutions would not only provide opportunity to foreign universities to set up campuses in India but help India save on large foreign exchange outgo. At present, over 143 Indian institutes and 161 foreign education institutions are engaged in collaboration delivering a total of 641 programmes across disciplines. These courses are being delivered through five key models namely: twining arrangements; link programmes; study centre; distance learning arrangement and franchise model.

Executive Education
Unable to ignore the India growth story and to diversify their revenue stream, over half-a-dozen international B-schools are in India, planning to cash in on the Rs 300 crore executive education pie. While Harvard Business School, INSEAD and Tuck School of Business are already present in the country, they would soon be joined by others like Oxford University’s Said Business School and Duke University. The Said Business School at the University of Oxford proposes to establish a Center for Indian business studies · the Oxford University India Business Center which will, among other things, also deliver executive education programmes. Many universities are still studying the Indian market. The sector would see more participation from international B-schools and universities.

Corporate Universities
Much before Kapil Sibal sought help of the private sector to meet the rising education demand in the country, companies had prepared blue-print for their education foray. So while Anil Agarwal’s Vedanta Foundation announced its plans to set up a university in Puri, Orissa on over 6,000 acres with an investment of Rs 15,000 crore, Mukesh Ambani’s Reliance Industries too chalked out plans to set up a world class university. Other companies which have announced plans include — Azim Premji Foundation, Anil Dhirubhai Ambani Group, B K Modi, Future Group, Bharti Foundation and Shiv Nadar Foundation among others.

Private sector has increasingly participated in domains of higher education such as, in pharmacy – 95 per cent, in engineering – 91 per cent and in medicine – 50 per cent. To achieve a gross enrollment ratio (GER) of 30 per cent by 2020, India would need another over 700 Universities and 25,000 colleges. At present India’s GER is 12 per cent against 82 per cent in the US and 75 per cent in Russia.

Evolving Distance Education
From the traditional text book model, distance education courses have evolved to be delivered through study centres; online; television and mobile phones. In fact, soon IIT aspirants coming years will see IIT JEE (Joint Entrance Examination) aspirants accessing coaching material on their mobile phones. Education service providers like Everonn Education and NIIT will be able to stream educational content through the third generation (3G) mobile telephony using the satellite-based Very Small Aperture Terminal (VSAT) Technology and Broadband. National Programme on Technology Enhanced Learning (NPTel), promoted by the Indian Institutes of Technology is another success story which students have been accessing online even through YouTube.

NPTEL has around 4400 videos on You Tube in 120 courses and 2.6 million viewers. The Indira Gandhi National Open University with over 2.4 million students and around 3,000 learning centres has been growing using the study centre model. Other players in the distance education segment are: Punjab Technical University with 1,200 learning centres; Sikkim Manipal University with 750 centres and Maharishi Dayanand University with 759 centres. These players deliver courses ranging from IT to management, to fashion and media. Many companies are studying the model to launch more courses.

Tags:Azim PremJi Foundation, Duke University, education franchise model, education industry, Everonn, Harvard Business School, Harvard Franchise, NIIT, NPTEL, Said Business School, Vedanta Foundation

Source:Business Standard, Kalpana Pathak ,January 3, 2011, 0:44 IST

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

BRIGHT KID MONTESSORI HOUSE HIRES SPARKLEMINDS FRANCHISE CONSULTANTS FOR EXPANSION STRATEGY AND INTEGRATED FRANCHISE DEVELOPMENT.

2010-12-14T16:59:00.002+05:30

Bangalore, India-Dec 14, 2010. For Immediate Press Release

North Bangalore’s No 1 Montessori House Preschool Chain, ‘Bright Kid Montessori House,’ has hired Sparkleminds franchise catalysts for expanding its chain through franchising. Sparkleminds is a specialized franchise consulting company offering franchise expertise to businesses seeking expansions and franchise development, for over a decade now.

Commenting on the association with Sparkleminds, Ms Susmita Sanyal, MD, Bright Kid Montessori House, stated, “We have been thinking of expanding our hugely popular Montessori house across India. Parents and many other entrepreneurs who have experienced or heard about our Montessori House have been requesting us to give them franchisees over the last few years. However, we want to go about this professionally. This is when our search led to Sparkleminds and we are glad to have been associated with the franchise experts to franchise Bright Kid Montessori House. We look forward to serve more geographies and localities in the coming years with their help and guidance.”

She further highlighted on how parents today rightfully demand much more than just a normal pre-school. She stated that “They are widely travelled, extremely well informed and seek the best for their Kids. The pedagogy of Bright Kid Montessori House is activity based Montessori Method of learning. This develops both - child's knowledge and ability to apply. We believe adding Knowledge is creating potential, while applying that knowledge is real power. The emphasis is to work upon all the aspects of childhood and hence a curriculum modeled on Montessori methods which today are rated amongst the most successful kid learning programme worldwide. Besides play and academics, we strongly focus on nurturing the creative skills of the children by giving special attention to various role-plays, arts, crafts, music, dancing etc. We also conduct various outdoor programmes such as Field Trips, Sports Day, and Talent Day etc.

Mr Amit Nahar, Founder CEO, Sparkleminds Franchise Consulting Company, said that “we are proud to further accelerate Bright Kid Montessori House Pre School Expansion using a very practical and scale able franchise model, which is the need of the hour today. India’s Preschool market is valued at US $ 985 Million and is expected to touch US $ 3426 Million by 2012. With the organized market it-self being less than 5% of the entire industry and the largest pre-school having less than 4% market share of that organized market with 550 Branches, against the need for more than 15000 schools, ensures that there is tremendous space for other qualitative players to form their own niche’s and set up great centers of learning. Over the last decade we have closely worked in the pre-school industry and are confident that an offering like Bright Kid Montessori House will surely be appreciated by the prospective franchisees and more importantly the parents who send their kids to these schools. We will launch the Bright Kid Montessori House Pre School and Day Care Franchise Model on the 16 Dec 2010 at The Times Kidz World 2010 Expo at Palace Grounds Bangalore.”

Tags: Pre School Franchise Model, Day Care Franchise Model, Bright Kid,Expand Pre School, Montessori Franchise Model, Pre School Franchise Development, Pre School Franchise Agreement, Pre School Franchise Manuals, Pre School Training, Education Franchise Model, Education Franchise.

Localisations, Innovations Back Business Model & Growth For MNC's In India

2010-12-09T12:23:00.001+05:30

Thanks to a booming domestic market and excellent economic development, the middle class has emerged as the real driver of growth and change. More and more people in India are experimenting with fresh flavours, tastes, price bands and creativity. No wonder, multinational food companies are making note of this and devising desi (local) creations that are bound to find favour with Indian audiences. Food business has plummeted in home markets and its makes sense for foreign companies to focus on money-spinning markets like India and China. According to Euromonitor, in 2009, the fast food market generated $139.8 billion in retail sales in Asia Pacific, swelling to an impressive 32% from 2 years ago, compared to just 1% growth in the US.

MNC’s and Localized Innovations
For Multinational Food Companies (MNC’s) like McDonald’s, Domino’s, KFC, HUL, Pepsico, Nestle & GSK, India ranks as a top innovation market that gets revenues rolling! But of course, in order to stay in the league and gradually extend footprint in the rest of the nation, these MNC’s had to pan out local menus and flavours that would suit the Indian palette. Plus, there was the herculean task of devising menus that would bear in mind local sensitivities too. “We could not obviously bring in some of our global iconic products like the Big Mac beef burger. We had to redesign most of our menu for Indian audiences” says Vikram Bakshi, McDonald’s MD and joint venture partner.This clearly indicates how global franchise companies are using localised expertise and tuning their local franchise model.

In fact, desi innovations are so important that McDonald’s holds a two-three day menu workshop every year (mostly in May-June) with 20-25 people from the management, innovation team, chefs, suppliers and sometimes even seasoning and flavouring companies to chalk out a plan for the next 3 years.

American Pizza Chain Domino’s has chefs on a retainer basis at its research and development centre in Noida. “We realised we had to be as localised as possible to come closer to the consumer” says Ajay Kaul, CEO of Jubilant FoodWorks (the Indian franchisee of Dominoes). The company’s innovations such as Peppy Paneer Pizza and cheese burst Pizza have won many accolades & contribute 65% to the top line.This ensures that they are globally in sync and yet have a local business model that drives their top line.

PepsiCo too is not far behind. Its localised snacks Kurkure namkeens and Aliva biscuits account for almost 25% of its growth every year. Other locally devised products include Nimbooz nimbu paani, Slice Mango drink, Kurkure and desi flavours under Lay’s (Mastana Mango, Tangy Twist and Cheesy Mexicana) Quaker upma, idli recipes and lots more.

To up its growth curve, Nestle India is establishing a Rs. 230 crore R&D plant in Haryana – its first in the country – to create local innovations in culinary products, cereals, beverages and dairy products.

Hindustan Unilever (HUL) made 40 innovations in all between January and October this year – 12 of which were in food. “India is now among the top-ranked countries for Unilever when it comes to innovations – both in food and non-foods” says Harish Manwani, chairman of HUL. Top innovations are Brooke Bond Sehatmand, a vitamin-fortified tea, Knorr Soupy Noodles & Annapurna low-sodium salt.

In the case of GlaxoSmithKline Consumer Healthcare (GSK), India is the only country where the company has a food business. Its biscuits and Horlicks Foodles instant noodles are completely localised innovations.

The spotlight is on Asia & India is definitely the backbone of several food multinationals. Who knows the launch of so many desi bites has already paved a way for other MNC’s to explore the country’s untapped potential in the food sector

Tags:Ajay Kaul, domino's, fast food business, fast food chains, indian food franchise., innovations, KFC, local business model, local franchise model, Mc Donalds, Vikram Bakshi

Source:Business Review India, N.Namazi, Mon Dec 6, 2010

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

Rural India: Reaching The Fortune at the Bottom of The Pyramid

2010-12-09T11:38:00.000+05:30

Mumbai, Dec 8 (IBNS) Capturing the rural market and serving the Bottom of the Pyramid (BoP) is high on priority for most Indian companies now, according to industry people who attended a two-day Rural Marketing Congress here.

A paradigm shift in the market has put rural India on every company’s marketing roadmap. Every company wants to go rural but for many, it is an unknown territory.

The Ideas Exchange has designed The Rural marketing Congress, a platform to share knowledge and facilitate networking to help address challenges.

The saw power packed sessions where seasoned rural marketing practitioners shared their experience.

“Rural marketing is all about understanding the consumer,” said Deepak Saksena of Hindustan Unilever (HUL) on Tuesday.

HUL has been pioneers in the Indian rural marketing space with the success of Shakthi Amma model. “Rural marketing in most cases is about bringing a behavioural change,” said Saksena. “There are major infrastructural and emotional barriers to overcome,” he added.

Mandeep Singh, Managing Director of d.light India said, “rural marketing is not a low hanging fruit.” D.light is the manufacturer of the world’s most cost effective solar lanterns.

“People from different facets of the industry are looking at the rural market from different angles. The rural consumer takes time to make the buying decision, especially when it comes to consumer durables. Try and buy or a seed and sell model has worked for us,” Singh said.

“Engaging with the consumers is the key to a successful rural marketing strategy,” he added.

Rahul Sharma, Head – Centre for Rural Information & Insights, Mahindra & Mahindra shared his insights and the company’s experience in successfully selling Mahindra tractor and farm equipments to the rural consumers.

“The rural retail market has a potential of about Rs 140,000 crores,” he said.

“There is an increasing potential for high value consumer durable products in the rural market,” Sharma said. “The rural consumer is aware and there is an increased demand for high quality products,” he added.

V N Saroja, CEO, Indian Agribusiness Systems and Amit Mehra, Founder & Managing Director, Reuters Market Light offer knowledge driven services on the internet and mobile platform.

Saroja expressed her challenges to deliver services on a platform that has a great potential but limited penetration in the rural market.

Amit Mehra spoke about his innovative model of delivering real time agricultural data on farmers’ mobile phones. “Some farmers are not ready to use SMS based services because they are not comfortable with it,” he said.

Gaurav Gupta, Regional Director, Dalberg Global Development Advisors answered the 1000 crore question for marketers today – “To franchise or not to franchise.” He cited several examples of franchisee models successfully implemented in several parts of the world.

Anu Valli, Head of Rural Energy Network Enterprise, IFMR Ventures explained the banker’s perspective when it comes to financing products for the rural market. “Product focussed finance brings in reputation risk for the financer,” Valli said. She presented a model for financing products for distribution in rural markets and pointed out the tactics to avoid.

Atul Joshi from Envirofit, Anuj Sharma, COO, Piramal Water and Prema Gopalan, Director, Swayam Shikshan Prayog debated on the need and the definition for the ‘rural entrepreneur’.

Gopalan spoke about Sakhi Retail a SHG model that helps brands reach the last mile consumer. She expressed the need for the corporate sector to invest and de-risk the rural entrepreneur.

Sharma explained how the micro franchising model has worked Piramal Water’s Sarvajal that provides technology for clean RO and UV processed drinking water for as less as 3 paise/litre.

The need and the definition of a rural entrepreneur differ depending on the size of the company, the product and the approach. There lies a huge potential in India’s hinterlands. But turning the potential into reality is not going to be an easy task, the experts said.

Source: Namit Agarwal; Indian firms eye rural market with new strategies;By WBRi IBNS Newswire on 08 December 2010;

Tags:Rural India, Business In Rural India, Franchise Rural India, Franchising in Rural India, rural marketing, rural franchise model, rural business model,rural industry,micro franchising.

Linco Hires Sparkleminds Franchise Catalysts For Franchise Development

2010-12-04T15:17:00.001+05:30

Linco Hires Sparkleminds Franchise Catalysts For Franchise Development.

To Build A Franchise Model For Company which offers its entire range of wellness and fitness equipments in a retail store format and additionally market the product and services through marketing franchisees.

For Immediate Press Release: Bangalore/Hyderabad, India-Dec 1, 2010.

Hyderabad Based, ‘Linco Beauty & Slimming Equipments Pvt. Ltd,’ a leading manufacturer and service provider, of Beauty & Slimming Equipments, since two decades, has hired Sparkleminds (www.sparkleminds.com) for expanding its business through franchise model. Sparkleminds is a specialized franchise consulting company offering franchise expertise to businesses seeking expansions, for over a decade now.

Commenting on the association with Sparkleminds, Mr Srinivas Rao, MD Linco, stated, “for the first time in the world, we are bringing a unique retail franchise store that offers complete solutions to the wellness and fitness industry which includes a complete retail experience, delivery of products to doorstep and complete after sales service facilities. Linco is a leading producer and exporter of Spa & Gym Equipments since 2 decades. Linco has pioneered the exports of Spa Equipments to global destinations. The company focuses upon delivery of high quality products backed by superior after-sale-service. Linco has grown into a fully integrated Spa & Gym Equipment company with own manufacturing and R&D centers across strategic locations in Hyderabad. Linco brings a complete range of domestic and commercial steam generators with sophisticated accessories and also facilitates glass cubicles, partitions, Steam room light and more. Linco also provides complete range of domestic and commercial sauna bath solutions, & commercial & domestic fitness equipments under one roof. It is perhaps the only place in the country to display a complete range of products and services as above.

Mr G. Sreekanth, The companies Business Development Head mentioned ‘Our aim is to cater to anyone and everyone looking for all kinds of wellness and fitness equipments, which we will be able to service, with our exhaustive range of products that will be showcased in world class retail store format.’ We look forward to being present in all tier I and tier II cities of India with our stores in the next 3 years. All Linco Equipments are today backed by excellent service, repairs and back up support.

Nobody serves customers the way we do, after sales.

Our association with an Experienced Franchise Consulting company like sparkleminds will enable us to franchise our business professionally. We have already begun work on our back end based on the recommendations put forth by them, over the last 2 months of franchise consulting exercise.”

Mr Amit Nahar, One Of India’s Senior-most Franchise Consultants and Founder CEO, Sparkleminds, said that “we are proud to bring the most innovative concept in the Wellness and Fitness Equipment industry through our Franchise Development Programme, which could have been envisioned only by the leaders in this industry, with as much expertise in delivering what the consumers seek to practically ensuring that there is a robust after sales service provided to clients who buy the products. We look forward to offering 600 Sft-1200 Sft franchised Wellness and Fitness Equipment Retail Stores across all major cities and towns on India, inviting franchisees with investment capacities of 30-50 Lakhs while offering them tremendous earning potential.”

He further stated, “This is a customized retail offering that ensures that these Equipments reach the customer directly from the manufacturers. We are confident, that the consumers will love this service in terms of how it educates them of their choices and how at the end of the day they save on costs of buying wellness and fitness Equipments either for domestic or for commercial use. With over 2300 Spa’s generating revenues in excess of US $ 400 million and growing in excess of 20% Y.O.Y, there is tremendous demand for qualitative back end suppliers who can not only supply world class equipments but also ensure they fix them immediately, incase anything goes wrong. The experience of Linco in servicing these products after sales will prove of great value for this burgeoning industry where there are frequent product upgrades and servicing required. Also with several national and international hotels, fitness centers, service apartments, health clinics and Beauty Salon Chains coming up, there is a tremendous opportunity for franchisees to service these segments and profit from being Linco’s franchisee in their respective cities.”

Tags:beauty franchise, Beauty Industry, Equipment Franchise, Fitness Franchise, Fitness Industry, Franchise Consultants, Franchise Model, Spa Franchise, Wellness Industry

Source:Company Press Release

Professionals Turning Entrepreneurs : India Entrepreneur Story Begins Shaping Up.

2010-12-03T11:00:00.001+05:30

Fame, money, and ambition — these are not the only factors that drive people to start new companies. It is also as much about generating employment opportunities, creating a talent pool and nurturing a milieu wherein people are encouraged to utilize their fullest potential and competence.

High achievers with vision, passion and entrepreneurial instincts, find the idea of starting a new company extremely challenging and appealing. “Starting a business is risky per se. Money is essential but certainly not the sole criterion for job satisfaction,” says Sandhya Ramkumar*, manager, soft-skills, in a MNC who plans to start a company to contribute towards the sustainable economic growth in the country dependent on the large numbers of employable manpower.

Growth of an entrepreneurial culture in India is of seminal importance. Entrepreneurship is the dream of many professionals right from the start of their careers.

Case in point is the BPO industry where some of the experienced professionals are turning down many lucrative offers to float their own companies.

“Our company will not only enhance the employability quotient of job seekers by honing several industry mandated ‘must have’ skills but also help potential recruiters find suitable and productive manpower thereby saving huge costs”, says Sandhya, adding, “Our training programme will be more holistic in that it will address the concerns of employees with entry-level careers in several sectors ranging from IT/ITES/BPO/ KPO/ LPO to BFSI, thereby broadening their avenues of employment.” In partnership with a couple of her colleagues, Sandhya plans to set up a company with an initial investment of `6 lakhs. “It is a passion project more than anything else,” says Bhaumik Patel*, content and learning consultant in a MNC who plans to join her team. Apart from pooling in the money and organising resources that a business set-up will demand — men, money and machinery, he also has to manage content development, liasing with business partners and capacity planning, among many others.

“The idea is to harness the untapped tier II and III cities (viz. Bhubaneshwar, Patna, Guwahati Shillong, etc) of the eastern and north eastern part of the country through both company owned and franchisee centres,” says Bhaumik, adding, “The goal is to tap 15- 20 per cent of the market size to establish our presence. With tie-ups with tech and non-tech colleges, filling in the skill gaps, our training programmes in soft-skills, crosscultural sensitivity and leadership skills will go a long way in establishing our brand name.” Investors must be able to assess, and gain confidence, in the fledgling company’s credentials and ability to deliver results on par with current industry standards.

“We have roped in a communication designer and analyst who will handle designing training and e-contents, company’s web-page tracking and maintenance, communication collaterals, and training delivery, among others,” says Sandhya, adding, “Depending on the performance of the company during the initial stages and the degree of scalability, subsequent human resources requirement will be planned.” Nasscom, Assocham, CII and various other industry bodies have recommended basic communication, accounting and computing skills as some of the ‘bare minimum’ requirements for most of the entry level private sector jobs. “Since it’s a skill and knowledge based service, the net profit margin is high. We, therefore, estimate to break-even in the very first year of business,” adds Bhaumik.

Source:Neo Entrepreneurship,Sarika Murthy,3 Dec, express buzz. com.

Tags:Assocham, business consultants, CII, Entrepreneur India, entrepreneurial culture, Entrepreneurship, Franchise Consultants, franchise your business, Indian Entrepreneurs, Nasscom, Start A New Business

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.

India's 2010 Growth Story & Forecasts For 2011 Year End Fiscal

2010-12-01T11:40:00.001+05:30

The boom-boom days of growth are back.

India’s $1.3 trillion economy grew by 8.9 per cent through the first six months of fiscal 2011 — faster than the economic pundits or the mandarins of North Block had anticipated.

The scorching pace of growth pace — amid persistent question marks on the recovery of the global economy — came on the back of strong farm sector growth, robust demand for consumer products from a burgeoning middle class, and quicksilver growth in the services sector.

But there was no mood of triumphalism that accompanied the unanticipated announcement — just a wan smile of relief that briefly smoothened the furrowed foreheads of top ministers in the Manmohan Singh government who have been battling taunts over corruption in high places, rising food prices and a dismal showing in the Bihar elections.

Said finance minister Pranab Mukherjee: “Amidst all depressing news, one good news is there… we may be confident that the GDP growth at the end of the year will not be less than 8.75 per cent… it may be more.”

India had averaged an annual economic expansion of 9.5 per cent between 2006 and 2008 before a global economic meltdown slowed growth to 6.7 per cent in 2008-09. The economy picked up steam last year and expanded 7.4 per cent. This year was expected to be better but not so good.

India grew by 8.9 per cent in both the April-June and the July-September quarters, according to data published by the government today.

The manufacturing sector, which remains a big employer even though the services sector now accounts for more than 55 per cent of the GDP, grew at almost 10 per cent.

The construction sector, which covers roads, infrastructure and realty projects, was growing at a pacy 9 per cent. Services like trade, hotels and transport grew 12.1 per cent.

Most polls of economists had forecast an overall growth ranging between 8 and 8.4 per cent during this period.

A strong monsoon this year and a resultant increase in crop acreage revived the fortunes of the farm sector which registered a 4.4 per cent growth. In the past few years, the farm sector’s fortunes have swung wildly from a negative figure to a maximum of 2.5 per cent.

Automobile sales topped 38 per cent in the festival month of October after a near 25 per cent growth in the first half of the year. Telecom firms reported a 90 million increase in subscribers, taking the total subscriber base to 650 million over the six-month period.

A North Block official said: “We never dreamt we would manage to get close to the IMF forecast of 9.7 per cent growth for this calendar year. But now a 9 per cent GDP growth this fiscal (which ends in March 2011) suddenly looks achievable.”

Said Mukherjee: “Normally, I don’t agree with IMF. Perhaps, this time I may have to agree with its assessment.”

The sharp economic growth makes India all the more attractive as an investment destination for global funds and transnationals hoping to offset piffling sales in Europe and the US.

In contrast, the 16-nation Eurozone drawn down by the financial doldrums in Greece, Ireland, Portugal and Spain, grew by a mere 1.9 per cent. The US, which is still struggling to resuscitate its economy after the financial crisis of 2008, has managed to grow 2.5 per cent in the third quarter ended September 30.

China is the only other major economy that is growing at a faster rate - at 9.6 per cent.

Finance ministry mandarins hope the India growth story will allow diplomats to wrangle more by dangling the Indian market as a carrot before P-5 leaders like France’s Nicolas Sarkozy, Russian President Dmitri Medvedev and Chinese Premier Wen Jiabao, who are expected over the next few weeks.

Already foreign funds have joined the party, pumping in a record $28.5 billion into Indian bourses.

“The GDP numbers seem exciting and highly endorse the India's growth story,” agreed Assocham president Swati Piramal.

But there a few clouds on the horizon: inflation still remains a worry at 8.58 per cent - far higher than the 4 to 5 per cent band that the Reserve Bank of India sees as ideal.

North Block hopes inflation will dip further when the crops planted during the monsoon months come into the granary.

Economists and business leaders are also concerned over a possible rise in auto fuel prices and the continued uncertainty in the western economies, which make up for nearly 70 per cent of India’s export market.

Oil economists expect crude oil prices to rise to an average of over $93 a barrel, up from an average of $70 for 2010. If that happens, it will only stoke prices and interest rates in India

Tags:Assocham, Growth Sectors, India Brands, India Business, India Economy, India Entry, India Exports, India Growth, India Legal, India Market, India Franchise, India Franchising.

Source:The Telegraph,Boom but no tom-tom,JAYANTA ROY CHOWDHURY AND R. SURYAMURTHY,New Delhi, Nov. 30:

This Blog/News/Press Release/Information is posted by Sparkleminds, A End To End Franchise Solutions Company. We offer customized services to businesses seeking expansion through the franchise route and over the last decade have helped numerous clients to scale up their businesses.Visit us on www.sparkleminds.com and speak to us, and we are sure you will be more than glad to understand how we could grow your existing business multi-fold times.