Franchising is a good business venture because you are backed by a business model that has proven itself and training from a well-known brand that wants you to succeed. But more often than not, prospective SME owners find themselves wondering how to get started. Finding an opportunity sounds obvious, but more than just believing in a brand, you have to be able to afford it.
Startup capital is always the biggest hurdle to overcome, not because other, more pertinent hurdles won’t be challenging in the future, but because without an initial investment, there won’t be a business to encounter challenges. Where entrepreneurs aren’t able to fund their franchise through alternative funding sources, bootstrapping remains the way to go. That’s why seeking an opportunity that is affordable is imperative.
This article explores four franchises that offer entrepreneurs the opportunity to make an investment of under a hundred thousand rand.
Bosch Car Service
Bosch Car Service is a franchise that automotive specialists and mechanics can look into.
Buying and setting up a brand new Bosch Car Service location can cost you a pretty penny (almost two million rand), but converting an existing automotive service provider shop to the Bosch brand will only cost between R 50 000 and R 750 000.
Joining this network benefits franchisees by giving them a legacy brand name with a good reputation. Workshop owners are able to operate independently while receiving support from the franchise to help the business grow.
Although the drawback is that SMEs will need some form of background in the automotive industry, or at the very least be able to run a workshop of skilled mechanics, this type of franchise proves that there is something for everyone.
Kumon Education
There are numerous education brands that are looking for new franchisees to join, but none so affordable as Kumon Education. The organisation specialises in helping children with study skills that they can take beyond exam preparation, particularly in maths and English.
Kumon Education has a far-reaching footprint beyond South African borders, stretching into Botswana, Kenya, Namibia and Zambia.
The investment amount is calculated at approximately R 60 000 – R 100 000, but the actual price depends highly on location, choice of programme, preparation needed for the venue and market conditions. An operating license is included in the price.
This is a good opportunity for teachers or anyone with a passion for education and working with children. However, every prospective franchisee needs to go through a screening process and attend a training programme before signing the franchise agreement.
Skitterblink Cleaning Service
The Skitterblink Cleaning Service franchise is a comprehensive collection of services that enable entrepreneurs to start their own cleaning business and scale according to client needs and internal capacity.
As can be expected from any franchise, the franchisee has the opportunity to leverage the reputation of the brand by using its name, logos, marketing materials, and other proprietary information.
Skitterblink offers franchisees initial training, legal set-up, and chemicals and other specialised products. This is all highly dependent on the type of services that the entrepreneur wants to offer. With the handy franchise cost calculator, SMEs can easily determine the startup cost for their investment, simply adding or removing services they would like to offer. Based on this model, it is easy to start a franchise from R 25 000.
Investing in a franchise for only a hundred thousand rand is possible. You only need to do thorough research into what options are available.
Benefits of Franchising
There are a few reasons why an entrepreneur should consider franchising. SMEs who are starting on their entrepreneurial journey can obtain the following benefits:
- Established brand recognition and tradename: You don’t need to start a brand on your own.
- Proven business model and package: Franchises are the same business replicated elsewhere.
- Known product and service: You don’t need to build awareness for your products.
- Training and support: You have experienced franshisors who you can reach out to.
- Bulk purchasing power: A large franchising network means stronger buying power to obtain discounts.
- Assistance with selecting the right location and site: Drawing on the expertise of those who have succeeded before you, franchisors can share where there is a need for their business or not.
Franchising is a good business venture because you are backed by a business model that has proven itself and training from a well-known brand that wants you to succeed. But Read More
