If you are looking to start a business overseas, then a franchise opportunity in Singapore may be the best you can find. This is because Singapore is a fast-growing economy and a lucrative market in which to invest. You can find many local and international franchises such as Subway, KFC, Instaroid, Frespresso, Gold’s Gym, and many others doing well in the island-city.
The primary reason businesspeople opt to invest in a franchise is that it is a proven profit-making enterprise. There is no need to worry about business strategy or working model. All they have to do is bear operating costs. As easy as it sounds, there are a few points to consider before embarking on this journey.
* What interests you?
It is best to invest in a franchise that closely matches your passion. This is because you know what your strengths and weaknesses are and can handle the business accordingly. If you are a master with numbers then you could choose a franchise that deals with finance. Similarly, if you are a people-person then customer service could be your forte.
* Are you willing to take the risk?
Riding on a successful business model may seem like the easiest investment, but what you may not know is that you only get the plan, nothing else. All the costs, from renting a place to finding employees, have to be borne by you. Be aware of the operating costs after you set up the business as well.
* Meet the franchisor
You should know with whom you are entering into a partnership. Meeting the management can help you understand the business better and ease your decision-making process.
* Calculate overall costs
A franchisor is entitled to franchise fees that include trademark royalties, training fees, and a portion of your sales. Operating costs will vary from time to time. You may have to make changes to suit business requirements that also come from your pocket. You will need about SGD$50,000 to SGD$600,000 to simply break into the business.
* Pick safe brands
Carving a niche and standing out from the crowd is an admirable sentiment but a time-consuming process on the road to profit. A well-established brand, on the other hand, already has a loyal customer base that will reel in profits. If you are starting out, then choose a brand with which customers are already familiar such as Subway or Ya Kun Kaya Toast.
If you have read and understood the costs, risks, and obstacles involving a franchise opportunity in Singapore and are confident in dealing with them, then you can expect a steady and rewarding business experience.