Franchise your manufacturing business in India. Join the KRANTI of the Fourth Industrial Revolution.
Is India ready for the fourth Industrial revolution which is underway globally?
Technologies involving advanced robotics, 3D-printing, AI, the Internet of Things (IoT), and neurosciences are shaping the course of the global manufacturing industry. Manufacturers have no option but to innovate, upgrade or perish. India is in the midst of what we can call, ‘KRANTI’ (Knowledge, Research, and New Technology in India). Prime Minister Narendra Modi has set a target for the manufacturing sector to achieve 25% of our GDP by 2022 and I feel Franchising can play a very vital role in this KRANTI in India.
Alongside this development, it is being noted that manufacturers across the globe are setting up mini plants closer to their customers. This they feel is the best strategy to service a customer during these competitive times. There are several industries in which the current technology has become outdated and there is a newer, more efficient and more acceptable way of manufacturing or assembling products. We are coming across several such manufacturers in India who are seeking the franchise model to expansion. They strongly believe that there is a huge market that can be tapped through these local franchises across various pockets of the country.
Last week I conducted my franchise workshop in Pune, India with one such manufacturer who is amongst the largest players in their industry and has come across a newer technology which is greener and cost-efficient and will replace the existing players in the industry. There are 100’s of old factories readied to convert themselves to this newer technology getting their return on investments within 2 years. Can it get better for the old manufacturers who are seeing their doom written on the wall?
The manufacturing your business in India workshop underway at Pune, India.
There are 1000’s of factories and sheds lying unutilized across India and I am of the firm belief that if manufacturers have a business model which can use this latent resource, then there could be very successful manufacturing franchises in India. However, it is not easy to create a franchise model for a manufacturing business but once you get the core right, it could be easier to operate and manage these franchises, than a full-fledged restaurant franchise where we circumvent a million challenges before you are fully ready to franchise your business.
- What are the typical challenges?
- How do you create a revenue model and get your share of the money? The typical No 1 question of “what is in it for me?”
- How do you create the back-end supply chain management? Procurement of raw-material and other factors affecting the final output.
- How do you ensure that the franchises firstly acquire new customers and once they do so, service them seamlessly?
- Do you create a separate type of a franchise who just does the manufacturing and you do the sales or create a buyback arrangement or does the model in your business warrant them acquiring their own customers?
- How do you manage competition? Are you actually triggering competition by announcing the franchise and telling the world that this opportunity is available for them to take on their own?
- What will ensure that they continue paying you royalties once they have learned the ‘trade’?
- Are there enough entrepreneurs out there seeking manufacturing opportunities in India or globally for your type of business? who could be your best fit and how would you go about getting them and then training them?
There are clear and definitive answers that we achieved to these questions and much more.
I am sharing a few charts and illustrations that will give you some idea on some idea on how we arrived at the franchise model for this manufacturer in India.
Overall Market Potential for the business:
How is it being catered presently and where do the franchises fit in best?
What types of franchises need to be offered and what would be their investment levels and the business they can achieve with those investments?
What is the industry support eco-system and where is it heading toward? Will this justify the franchise’s presence and investments and what would be the returns?
What are the franchisors primary roles and responsibilities and how are they going to fulfill it? What investments will they have to make additionally to be able to make and support franchises?
Commitment and support from franchisor and franchises?
Franchisee Profiling: Types of Franchises and challenges of working with existing old type units. What is the growth rate that could be achieved from each type of franchises?
The above illustrations will give you a brief over view of a detailed process that needs to be followed to be able to make a manufacturing business into a franchise. Let’s help you join the KRANTI Industrial revolution IV and help you create franchised factories and units across India.
