Investing in a franchise in Nigeria can be the biggest and best decision of your life. If done correctly, you can make a lot of money from it within a very short period of time.
Unlike starting a business from the scratch, you have nearly everything you need ready. The popularity of the brand, the potential customers, the line of products or services to offer your customers, the reputation of the brand, training opportunities etc. This gives your business an edge over brand new businesses started at the same time and venue with yours.
All over the world, people invest in a franchise for different reasons. The greatest of them being the fact that it reduces the risk of your business failing. You are likely to succeed faster through it than other business means.
What Is a Franchise & How Does It Work?
In business, a franchise is simply an authorization granted by an already existing business to another party to sell or distribute its goods or services using its name in a specified location.
To further explain this, it is the agreement between two parties in business in which Business A allows Business B to deal on Business A’s goods and services using the business name and model of operation.
Take for instance you want to start a restaurant in a particular location in the city of Enugu. It will take you some time to come up with products to sell, advertise, market and as well as grow your customer base.
Instead of going through all that stress, you can approach Mr. Biggs which is an already established business, offer them money for a franchise. You will be required to do some paper works after which you can open up Mr.Bigg’s Restaurant in your area, sell their products and pocket your money.
Since Mr. Biggs is already a successful company, your chances of succeeding fast using the brand name, logo and products are higher compared to you starting a whole new business which no one knows about from the scratch.
That is how a Franchise work. Such agreement between parties are usually renewed every 10, 5 or 3 years being the least.
As good as investing in a franchise sounds, it is not something you should rush into without fully understanding the basic things that determine the success or failure of the venture.
Below are some of the things you should know before investing in one here in Nigeria.
What You Should Know & Do Before Investing In A Franchise In Nigeria
Like I earlier mentioned, the success of your franchise depends on a number of things which you must fully understand and do before investing in a franchise. Some of those things are:
1.) The Franchisor
The franchisor here refers to the person or company that will be granting you the franchise. You need to thoroughly understand the company or business.
By understanding the company, I mean their business model, products or services, how their franchise works, the initial payment and renewal, advertisements etc.
Knowing these things will help you even in drawing up your business plan.
2.) The Capital Involved
Every business requires some amounts of capital. You need to sit down and calculate what the franchise will cost you.
Ensure you put everything into considerations. The cost of the franchise itself (the right), the building, staff, appliances, advertisements, transportation etc. All these must be carefully written down and well calculated. Do not leave anything to chances.
If you cannot get the exact amount everything will cost you by yourself, get help with that. Ask others who are into it for help. Ask the right questions and get everything figured out.
3.) The Source of Capital
How do you intend raising the capital after knowing the amount of money involved? It’s very important you consider this carefully.
There are several ways you can source for funds for the business. They include grants and funding from governmental organizations, family and friends etc.
4.) The Location You Intend Setting Up The Franchise
Location plays a very important role in the success of any business. You just can’t choose any location and hope to setup the enterprise there. It has to be a location you have carefully studied and know will deliver.
Setting up a restaurant like Tantalizers in a place known to be a very rural community may not take you so much to do. However, the low patronage may force your business out of existence.
Another factor to consider in the location is the accessibility. Can people comfortably get to your business all year round? In rainy season and also in dry seasons.
Depending on the type of franchise it is , you would need one or two workers to begin. To run a franchise like Mr. Biggs, Tantalizers or KFC, it is a must to have more than 5 workers at the beginning. The number will have to increase as the business grows.
If that is the case, who is going to train them? How will they be trained? You don’t want to have workers that are rude, abusive or quarrelsome. They will chase away your customers before you say “jack”.
Your staff must be trained to always approach customers politely, wearing a smile most of the time.
Franchise Opportunities In Nigeria (Most Lucrative Ones)
Buying a franchise saves you the stress of building a brand from the scratch. It helps you reduce or avoid the expenses involved in trying to promote a brand. It puts you in a place where you just start earning revenue from your business.
Are you searching for a lucrative franchise to buy? Below is a list arranged based on their niches. Check them out.
1.) Restaurant Franchise
There are so many restaurant franchises that you can buy if you dream of owning a restaurant someday.
Brands like MacDonalds, Mr.Biggs, Tantalizers, Kentucky Fried Chicken (KFC), ShopRite and chicken Republic (CR) are among the most popular ones.
If you buy a franchise from the above mentioned brands and start the restaurant in any city in Nigeria, making money from it will not be an issue for you. Nigerians love eating in these restaurants.
2.) Mobile Phone Business Franchise
The mobile phone business is a very lucrative one. In Nigeria, brands like SLOT, FINE BROTHERS and so on have gained the needed popularity and reputation to help your enterprise succeed.
Buying a franchise from any of them will be a great idea for your business.
3.) Transportation Franchise
Nigeria’s transportation industry is very lucrative. As a matter of fact, it is one of the most lucrative industries in the country.
The reason is quite simple, people travel everyday. Short and long distances.
Buying a franchise by brands like ABC Transport, GUO and other top ones, is one of the best way of making money fast from this industry. You only have to buy your buses, brand them accordingly and watch customers troop to your office in large numbers.
4.) Petrol Station Franchise
This is also a great idea for those hoping to own a filling station in the country. You can buy a franchise from Nigeria National Petroleum Corporation (NNPC) which is the most trusted in the country. Believe me, customers will start pouring in.
Same goes for Oando Plc, ExxonMobil, Total and so on. I don’t need to tell you how lucrative oil and gas is in the country right now.
Buying a franchise in Nigeria is one of the best decisions you can ever make as a business person.
It saves you the stress of promoting and building a brand from the scratch.
You will make more money with it in a short time than you would with your business, if done correctly.