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FRANCHISING & RETAIL BUSINESS ASSISTANCE

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  •       The distribution of goods and services is a peculiar business area, which needs a specific and wide knowledge and experience to manage the related risks, especially when moving in international markets.

           Franchising is a great solution in many, but not in all cases, as multi-level marketing, distributors and sales networks, but there is no universal solution or strategy valid overall.

           TESTING the MARKET is the mother of all strategies in this sector, as speed of change is unavoidable, and time and costs for analysis and planning over a reasonable limit, increase the risk to rise fix costs not recoverable, apart from rare cases in which size of transactions are justifying wider planning and market researches investments.

            For this reason most of small and medium enterprises, but also many big multinational companies, do prefer to organize direct resources to test local markets when available, or outsource these minor tests to specialized Internationalization/management/outsourcing companies.

            Sometimes this approach of outsourced test investment, can also be combined with several kind of relieves from Government Bodies (for fairs / matching events / temporary export managers etc.), which have the goal to support SMEs internationalization, as export is a primary source of increase of the gross domestic income.

            According to the above market rules and principles, the main needs of SMEs in these markets are the following:

     

    1. Identification and development of a ‘product/service/business’ FORMAT’ by planning, production and sale in a domestic market;
    2. Then is coming research, selection and recruitment of franchisees or master franchisees, which even more complex than and ordinary HR recruitment and selection, as it implies a higher number of parameters to be considered;
    3. This implies also the PARALLEL activity of preparation and ‘packaging’ of a franchising KIT and CONTRACT, which must respect the local and international legal compliance, and at the same time create a high level of ‘incentive and motivation’ of the franchisee as this will become a primary resource for the franchisor business development, often reducing its risk of failure in new markets and in some cases becoming the best candidate for acquisitions and transformation into a direct sale point.

     

    HTLC Network has accumulated a considerable knowledge and experience in the franchising & retail business consultancy, attending business events, planning, developing, analysing business formats, coordinating the supply chains, assisting to improve performance by administration and control of the sale points.

     

     Book your free 30 minutes of Skype consultancy by our ‘contact’ page !

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