Entrepreneurs have been admonished to refrain from growing their companies too quickly if they lack the resources, expertise, and know-how to do it successfully.
Instead, companies ought to think about franchising as a method to increase their branch network and awareness in additional places where they are not yet present but see opportunity.
The counsel was given by Florence Torsonhart, President of the US-Ghana Chamber of Commerce, in response to queries at one of the breakout sessions of the two-day Global Women's Professional & Business Conference at the Accra International Conference Centre.
Franchising
A commercial arrangement known as franchising involves two parties sharing the right to sell each other's goods and intellectual property.
For instance, a number of fast food restaurants, including KFC and Domino's, operate in Ghana via franchising.
Mrs. Torsonhart noted that rather than going through that ordeal, it would be better to sell a franchise to another person or business interested in dealing with "your products or services" to do so while you sit back and take the royalties". She said that many entrepreneurs are frequently tempted to spend money to open new outlets or branches in areas where they do not have much knowledge or financial strength.
For a franchise to be successful, the owner must provide high-quality goods, effective and efficient customer service, and a compelling value proposition, according to the speaker.
procuring insurance
She emphasized the necessity for company owners to get in touch with reputable insurance firms that offer products that may allow the business to continue even in the owners' absence due to death or an injury that renders one unable to work in the field of maintaining business continuity when one is no longer there.
According to Mrs. Torsonhart, having this kind of insurance shields the business's owner and employees against dangers and liabilities.
She claimed that having the appropriate insurance coverage might protect one's financial future and offer the entrepreneur peace of mind.
Additionally, it may offer advantages including tax breaks, assistance with legal matters, and access to additional funding.
Escape corporate Mrs. Torsonhart also requested that the participants think about the "foundations" or the "reliable tripod."
She noted that the first point in the tripod, "Narrow Target Market," was about being able to focus more narrowly from the start of a firm in order to accomplish one's goals.
She cited the success of companies like Facebook, Harvard, and Amazon as examples of how spreading oneself too thin may harm a startup's launch or impede the growth of an established company.
The second point was about the "exciting value proposition," which claimed that every company should have one or more features that set it apart from its rivals.
As common as a product or service could be in the marketplace, she emphasized that "yours must have a unique, distinct character that draws the crowd to you at all times".
She claimed that many companies frequently lack an intriguing value proposition, rendering their goods or services "just another one."
Regarding the third criteria, Mrs. Torsonhart outlined the requirement that the entrepreneur be capable of having a "scalable marketing plan."
That, according to her, was essential since the business owner should be able to develop a plan that would enable them to expand their startup without compromising their spending, product quality, or client happiness.
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