Thursday, July 31, 2008

Franchise Instead

Say you have some money you can invest in a small-time business, but do not really want to think up an original one, do the market research and feasibility studies for it, get patents and SEC registrations and licenses for it... consider investing on a franchise instead.

It need not be Jollibee big (where you'd need millions for a franchise). It can just be a hit food cart or a baking supplies store. You can even look to your neighborhood to see what's missing there (a fishball stand? a decent Japanese kiosk? an ice cream parlor? a computer surplus shop?) and take advantage of the residential market you can tap.

If you chance upon a service that is really good and isn't that popular yet, chances are, the franchise cost will be smaller. Of course, there will be that risk that the return for your invesntment may take some time, or that it would go bankrupt... but that's where location will really come into play. A stall selling affordable pastries/baked goodies would most probably be a hit near bus/jeep/fx depots since people will be enticed to bring some home to their loved ones. Street favorites like kikiam and fishball will always sell where there are kids. Merienda food will always in office buildings. And then, of course, there are food items you can sell in the streets/malls of Manila which would be just out-of-place in Makati.

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