Tips to Start a Business Franchise in Indonesia

When this franchise growing in Indonesia. The name is already known so no need to do a lot of promotional effort, also the time of return of capital in accordance with the amount of capital invested, make doing business more convenient and good prospects. The full operating manual effort by franchisees are also able to attract beginner businessmen to buy the franchise.

Many foreign companies are opening a franchise business in Indonesia, among others, McDonald's, Popeye's, KFC, and Starbucks. But not a few companies which come to enliven the market. Franchise exhibitions held each year in Indonesia located at the JCC, Senayan, Jakarta.

According to organizers, 50% of the tens of thousands of visitors to the exhibition which took place at the end of 2009 it said it would invest in a business there and 40% of participants get a new contract to open a branch. The entry fee is charged USD 50 thousand per visitor for 3 days did not dampen the intention of the exhibition enthusiasts franchise business in Indonesia to come look at the franchise business opportunities.

Start a Franchise Business Tips
A few beginner mistakes when buying a franchise business is less selective in choosing franchisees, lack of operational funds, relying too much on franchisees, and can not pinpoint the exact location of business and strategic as a place of business.

Be aware that it is now business is booming franchise in Indonesia. But you do not easily dazzled by the grandiose promise of franchisees. If you are really lay in your business affairs, invite your friends or relatives who are more familiar to accompany you.

Learn the correct projections of investment and return on investment they represent. Ask for a detailed business plan. See whether they are realistic in estimating the market and sales.

Shortage of operational funds could also be one cause of the rapid business franchise folded. By having a famous name, you do not need to spend a high promotional costs. But do not forget, the more famous and more of a business name in Indonesia, the cost of its franchise even higher.

In some franchise, you have to pay a royalty fee every month. Usually in the form of a royalty fee charged a percentage (between 5-10%) of total sales or profit. So the greater your income the greater the royalties that you have to pay.

Do not let this cost is that you must pay at the beginning or the routine, reducing your ability to pay operating costs such business for his employees, the cost of electricity, and telephone charges. Calculate correct everything, provide hard cash in a safe business to start operations during the first year.

If you rely too much on guidance from the franchisor, you also can lose your customers. Remember, not only you have the same business, but also other franchisees. If you are less innovative in running a business, it's possible your customers will flee to other franchisee-owned businesses.

Another thing that absolutely need to be considered in running a business is location. The difference a few feet can make your sales go up dramatically or drop dramatically. Ask for franchisees to help guide the survey locations. However, some franchisees have included the cost of site surveys in the initial investment package.

Currently the company's new open and new have 1-2 branches alone can offer the franchise. Choose the franchisees are really experienced doing business in Indonesia. Proven that their business products and services are reliable and good prospects in economic development in Indonesia.