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Startup discussion
With the imminent arrival of our brand, we will have the brand, domain, and company names, so it will be time to move forward from the development and test marketing stage into deeper water.
After a lot of thought we think we’ll open our first retail store in a hipster part of town after researching the local buyer traffic etc. Online too, via Amazon because in Mexico people haven’t yet begun to buy online.Now, the question is a business model question: either take the organic growth route like Lush, or go for franchises and try to expand fast. I favour the latter. -
2 Replies
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If you know anything about franchising that could be a good way to go. But then you just have to find people who want to get involved with your franchise.
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Hi Belassi,
In my opinion, organic grow and maybe later (it depends on your organisation philosophy) franchise. How do you plan to do a franchise model without having proved your brand works? Imagine that you have success getting people involve in opening franchise, are your structure prepared to have small or big sellings contrast? I mean, it is not easy to have an structure that allows to survive manufacturing small quantities (starting period may be not easy) and respond to a possible big success and viceversa. It is not so easy to explain but franchise model can experiment big selling contrast (more selling points, more impact of each decision) and at the same time having more selling points can helps you to survive if some of them do not correctly “being help” by the others….depending on how they are distribute. It is not the same to respond to one selling point that several.
Starting in franchise mode also have the difficulty to get involve the correct people…have you think how to select involved people (with difficulty of selecting with not a lot of interested people (remember your brand is new)) and how to control what they do with your brand image?If I were you, organic grow. If you are very sucess, after some opened selling points, think about have a % of franchised locals. Ex: if you have 10 shops, 1 or 2 are not going to change too much if they start to sell more than you expected or even if arrives the situation that you have to cancel your contract with them.If you are thinking about franchise because that allows to open more locals and grow faster, why not to sell some actions to get cash and open yourself more shops? (it is an option)
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