How The Digital Age Has Opened Up New Opportunities For The Franchised BusinessHidden benefits of digital franchises over more conventional business models...
In the ‘bricks and mortar world’ a franchise usually lasts for a fixed time period (broken down into shorter periods, which each require renewal), and serves a specific territory or geographical area surrounding its location. One franchisee may manage several such locations. Well known franchised businesses include McDonalds, Subway, 7-eleven and Dunkin’ Donuts. Mid-sized franchises like restaurants, gasoline stations and trucking stations involve substantial investment and require all the attention of a businessperson.
There are also large franchises like hotels, spas and hospitals as well as social and event-based franchises.
Franchising is the practice of leasing for a prescribed period of time the right to use a firm’s successful business model and brand. The word “franchise” is of Anglo-French derivation—from franc, meaning free….
Extract From Wikipedia: Franchising
Home Based Business Franchising
The franchising or duplication of another firm’s successful home-based business model is referred to as a home-based franchise. Home-based franchises are becoming popular as they are considered to be an easy way to start a business as they may provide a lower barrier for entry into entrepreneurship.
It may cost little to start a home-based franchise, but experts say that “the work is no less hard.” According to America’s Best Franchises, there are many benefits to choosing to become a home-based franchisee, “but having a home based business doesn’t offer any guarantees as you will encounter many challenges you’ll have to learn to overcome.
The advantages, however, are clearly obvious. For those interested in developing their own business, a franchise at least offers a template for success, assuming of course that the underlying business model is already working.
Digital Information Based Franchises
With the advent of the internet, a major new opportunity has been presented to individuals who wish to develop and business from home. The traditional ‘bricks and mortar’ franchised businesses required premises, a fixed geographical range, stock, staff and training, amounting to significant investments in terms of start-up and running costs.
The opportunity to develop a business model that excludes many of these costs, has significantly reduced the barrier for entry. Products and services no longer have to be physical in nature. Digital information products, software and can be accessed and downloaded from anywhere in the world with an internet connection. The traditional costs of manufacture, holding stock etc. therefore tying up capital, have been circumvented.
Picture: Putting the pieces together. Just as with more conventional businesses, a digital franchise still requires a well considered business model and blue-print.
The other major plus is that the business no longer is restricted to a certain geographical location. Leveraging the power of the internet, the digital information based franchise owner is free to target potential customers globally. Coupled with this is the obvious advantage that there is no longer the defined concept of business hours.
With the internet, you can always be open for business around the world.
The one caveat to this is that you require automated systems that can be working for you around the clock. I will cover this important aspect in future articles.
With so many major benefits over the more conventional franchised businesses, it’s no surprise then, that the digital franchise is here to stay.
To find out more about digital franchise opportunities, there is a special webcast presentation available with Stuart Ross, who outlines the key steps to developing a successful business online.
You can register for the event by clicking on the link below:
Digital Entrepreneur, CEO
PS. To find out about the online business franchise that I am associated with click here
PPS. To obtain our complimentary training course outlining the essential steps required to be a successful digital entrepreneur click here