Budding entrepreneurs should be warned. While the food business is generally speaking an excellent place to park one’s excess funds in, there is no such thing as a sure investment.
To lessen the risk of losing one’s shirt, franchises have become an appealing option. While they are by no means absolutely guaranteed to show instant profits, franchises will usually run in the black within a short period if both franchisor and franchisee do not veer away from tested formulas for success, foremost of which is to give the consumer a good deal.
The fact is, just about any product or service can be franchised, not just food. And there will always be unscrupulous “businessmen” who will try to earn a fast buck by selling franchises, and not a product or service that has a ready market.
Budding businessmen are therefore advised to study the company that they are interested in as a first step. Review the products or services offered, and determine if the marketing plan makes sense. Then study the books of the company, as well as the people behind it.
Most important of all, the would-be entrepreneur should invest only the money that he or she can afford to lose.
The Philippine Franchising Association may offer sound tips, but it can only go so far. In the end, it is the business sense of the food entrepreneur that will determine whether he or she makes it, or falls by the wayside, which is littered with failed food enterprises.
What is heartening to note is that most of the franchises offered in the country started out as homegrown businesses.
The food businesses that have succeeded in the past did not reinvent the wheel. Nor will their formula for success change in the foreseeable future. All they did was offer a good product that everybody likes, at a price that is considered fair and affordable. Add to the mix a lot of hard work and pray for a little bit of luck, and the next big thing will soon enough find its way to the market.