One of the best options when looking for independence and risk reduction when opening a business are franchises , especially when the economy has not shown good growth, specialists agreed.
This type of business, in addition to being a proven model that offers support and a return on investment with less risk, is a trigger for strong companies.
“ Franchisees are generators of strengthened small and medium-sized companies; fair competition, wealth, stable jobs and community well-being”, commented Enrique Alcázar, CEO of Alcázar y Compañía. According to the Mexican Franchise Association (AMF), between 85 and 95% of franchised businesses continue to operate beyond the fifth year of life.
In times where the economy grows little or is in crisis, this type of business is usually a good option.
"The performance of franchises in different sectors continues to be a low-risk, quick-return, and high-profit investment option, compared to undertaking an independent business," said Alcázar.
"The chances of success for a franchise are very high, between 85 and 95% compared to 25% for an independent business," he added.
These types of companies have also managed to withstand "the inclemencies of the economy, also helped by commercial aspects such as staying at the forefront by identifying the changing needs of the market, the competition and generating constant innovation," said Ileana Zendejas, for her part. Feher & Feher relationship manager.
The sectors that continue to show sustained growth are food and personal care.
"Food and beverages continue to grow, specifically the concepts of healthy options and organic," said Zendejas.
“Health and beauty continue to stand out as it is presented as the first option for many new entrepreneurs. Health and beauty issues are also rebounding as a result of a clear trend of seeing ourselves and feeling better,” Alcázar commented. Another growing sector is pharmaceuticals.
To ensure that your investment is not at risk, the specialists agreed that it is important to verify that the business has prestige and has been operating successfully in the market for some time.
“It will be very important for the entrepreneur to know the history of the brand, its growth and development model. You have to know the experience of your franchisees. It must also be taken into account that a good franchisor cares about carrying out a good selection and training process to recruit successful entrepreneurs”, explained Alcázar. It is also a serious company when it has the Franchise Offering Circular.
WHICH IS THE BEST FOR ME
First you have to know our financial expectations; our tastes and preferences; Alcazar detailed. From there, he adds, it will be important to look for several options that, due to their turnaround and investment amount, are close to what we are interested in, also considering the time we are willing to dedicate to the business, the area of the country where we are going to set it up.
“It is very important that there is empathy and identification with the business values and philosophy of the brand with which I intend to share”, he concluded.