Not everyone can open their own business. There are many obstacles that will always arise on the way. The most famous and serious of them are the lack of money for initial investments, as well as the lack of knowledge and experience in conducting their business. If the first problem can be fought with a bank loan, the sale of some property, loans from relatives, then the second sometimes causes a stupor among some novice entrepreneurs. For this, there is such a tool as a franchise. In more detail about this, as well as about how the franchise of children's clothing can be beneficial, we will describe in this article.
General view
Surely you have already heard such a term. You probably even know that he came into our everyday life from the world of business; that it is a designation of a form of cooperation. To be more precise and correct in the definition of this word, the franchise means the transfer of the right to use the brand (trademark, technology and other business tools) to another person on a paid basis.
This form implies that the owner of a working model can engage partners who will open representative offices of the same brand in another territory and, thus, develop a business network. The best example of this format of work (with the exception of fast food chains, of course) is the franchise of children's clothing. Many stores offering inexpensive consumer goods have their own proposals for transferring the right to use their names and concepts. Thus, anyone who would like to acquire a franchise can do this and start a business.
Case studies
The best way to understand the topic of this article would be to give an example, which we will do. So, children's clothing franchise - what is it?
Suppose you have an Antoshka store selling goods for children. In particular, you offer a certain assortment (shoes, clothes and toys for children) and work under your own brand. Let's say your store is very profitable, while it is open somewhere in Yekaterinburg. The number of buyers is growing, turnover is increasing, you understand that you have found excellent suppliers and have chosen a concept in your trade that appealed to the buyer’s taste.
Your next steps will naturally be aimed at expanding this business. Suppose you open one or two more stores at your own expense. But this is not enough to start global trade. Therefore, your decision may be the franchise of children's clothing. It can bring you to a completely new level of income, and give your company a qualitatively different volume of sales.
You offer each interested entrepreneur to open an Antoshka store under your brand and with your products according to the model that you worked at your first, most successful outlet. In return, this person will make regular payments for using the trademark with the income that he will receive. Such payments can be set both in the form of a fixed fee, as well as a percentage of income.
This is the franchise of children's clothing. Thousands of entrepreneurs work this way (and, probably, in all areas of business).
Buyer Benefits
The person who makes the payments (referring to both the initial “lump-sum payment” and the monthly “royalties”) is called the franchise buyer. For him, the benefit of such an acquisition is assistance from the owner of the brand. After all, the latter provides him with ready-made work instructions on how to organize the work of his enterprise in order to make it successful. These recommendations can go as far as the set of colors that should be used when composing advertising materials for your store. In addition, from the owner of the franchise you can get contacts of suppliers of goods, schemes for placing goods on shelves, tips for arranging a store and much more. As you know, when you open it from scratch, you would have to do it all yourself, by trial and error. Reviews say that this is a very long and expensive process.
Also an important role in such a category as the franchise of inexpensive children’s clothing is played by the brand’s fame and reputation. If you start working with a popular brand, it is likely that your point will gain customers in the first days of work.
Benefits to the seller
We have already partially mentioned why a franchise (children's clothing, Russia) is an excellent business decision for a store owner or a network of retail outlets. It allows you to expand the audience covered by your brand, to make the latter more recognizable and popular among customers. Naturally, in addition to this, you create your own affiliate network, consisting of buyers of the right to work with your brand. You can collect royalties from each such participant, which also gives certain material benefits.
Why - baby clothes?
Another interesting question that a person who is looking for an interesting business model can ask is determining the scope of his future activities. In particular, he will ask: why exactly the franchise of children's clothing? Why go into this niche if there are many alternative interesting ideas that you can work on?
A single answer to this question, of course, does not exist. Just children's clothing (as the reviews show) is a category of goods that is constantly in demand: people always buy clothes for their children, and they often do this not in large stores, but in small “near the house” stores, where prices may be lower . Due to this, your benefit as a possible owner of such a store lies precisely in maintaining an adequate price level with a wide assortment.
And there are fewer difficulties in working with clothes than, for example, with foodstuffs or with other institutions. Reviews regarding this type of business confirm this position.
Find a franchise
So, another interesting question arises: how do you know which store you should cooperate with and under which brand you need to do business? A catalog of children's clothing franchises will help you with this. Such sites are organized according to the list principle, where various brands and clothing stores are represented. Descriptions of activities are presented for each of them (what the company focuses on, with which suppliers it cooperates, what financial indicators it can boast, and so on).
If you are interested in working with exclusive goods - it is better to focus on imported products; another thing is the budget class (then the franchise of the domestic manufacturer of children's clothing is useful). In general, positive changes can be noted regarding Russian suppliers. Now on the market, due to the economic and political crisis, mainly our companies are represented. As a result, the franchise of children's clothing made in Russia can become a very profitable venture. At the same time, investments will be relatively small. Read more about them in the next chapter.
Expenses
How do I know what I need to pay to start working with a franchise? Correct: this information is provided by the seller. The owner of the business you would like to enter shares information on working conditions (the size of the first payment and the amount of royalties). In addition, the description of the franchise provides detailed descriptions of the costs necessary to work in this niche. For example, this may be the amount of funds that must be used to purchase goods; money for repairs in the rented premises, the cost of staff and so on. Even if you are a complete newbie in business, all of this information will help you. The reviews confirm that this information can help orientate in future plans on how to conduct your business.
Business plan
Do not forget to write about your business plan, according to which you would like to work in the future. This is important not only in order to get a loan from a bank or make a franchise purchase. No, a business plan will also help you as a business owner more accurately determine your next goals, set a schedule for their achievement, and plan the growth and development of your business. As practice shows, doing this is best, knowing exactly what steps you intend to take. For this, they make up a business plan (including if you have a franchise for a children's clothing store).
Search for funds
As noted at the very beginning of our article, in addition to the problem of lack of experience, often novice entrepreneurs are faced with a lack of funds. As the reviews show, this is a really topical issue. However, it can be solved.
You can fight it with loans, loans from friends, selling something unnecessary from your property. So, I would like to note on this occasion that the acquisition of a franchise and a clearly drawn up development plan for your enterprise can be excellent helpers in resolving the money issue. The main thing is to convince your potential investors or creditors (whoever you contact) that you know what you are doing. You must clearly understand how the business you are planning to enter works; what pitfalls are hidden in it; which may pose serious threats to you for financial loss and the like. Only if you learn to competently carry out all this work, as well as think about promoting your store, expanding the range and attracting customers, you will not only receive money, but also create your own business, successful and prosperous!