Opening a franchise is one of the safest ways of striking out on your own. But like any business decision, it should be decided after proper deliberation. One of the reasons for franchises to fail is lack of planning and research. No matter how great the brand and how hot the industry you pick, if you haven’t backed up your investment with a proper plan and research, you will face troubles that you simply won’t be equipped to handle.
One of the best areas for franchise investment is the Pharma sector. The Indian Pharma industry is one of the world’s biggest. In fact, in terms of global sales volume in generic medicine, Indians rule the roost. Entering the franchise sector can be a very attractive prospect and the industry offers even smaller players a lot of scope to grow and develop. However, you should still ask yourself these questions before you invest in a psychiatry Pharma franchise Delhi:
What is your goal?
When you start any business, you have to decide what your goal is. Is it simply the most profit you can earn or is it about building a business of your own or is it about taking medicines to remote areas? You goal must be aligned with your cations. Opening a franchise is just the first step towards achieving it. Defining the goal will also help as a guiding principle.
Are you ready for it?
Starting any business is not going to be a walk in the park, especially in a high competitive world of Pharma. So, it’s important to ask yourself if you are ready for this change in your life. Opening a franchise requires a lot of work and you have to ask yourself if you are ready to take on this responsibility at the current stage of your life. Many people go into franchising as a source of extra income or as a seasonal work.
However, Pharma is a fiercely competitive industry where you cannot succeed without full commitment. To add to this, most Pharma parent companies would not tolerate a less than focused approach. So, even before you start, do a detailed analysis of your own life.
Is Pharma the industry for me?
It is always best to do something you love. You may love the idea of running your own business, but is Pharma the job for you? Do you feel committed to make your own name in the industry? Experience in the industry is important because it can give you an insight into its working, demand-supply structure, and what works in the market. You must also be clear on your core are: are you interested in allopathic, homeopathic or Ayurveda medicines? Is it psychiatry pharma franchise Delhi that interest you?
Have you done your market research?
The one necessary requirement before you start is proper market research. You must start with research even if you have worked in the industry. Research will focus on the state of the market, the competitors, the demand, areas of growth and so on. Good research can give you a valuable insight into the market and inform you of whether it is the right time to start. It can also tell you the verticals with insufficient supply and high potential for growth.
Market research is the basis on which most of your decisions will be taken — such as the scale at which you will start, the inventory you want to order, the competition and their strengths. Good research is what gives a new venture the strength to start on a winning note. The demand pattern and the state of the competition, in particular, are two very important points.
How risky is it and am I ready for it?
Starting any franchise involves a financial risk. There is considerable investment involved and despite all the planning, sometimes things can go wrong. The beginning, at least, is likely to be rocky as you try to find your own feet. Even with all the luck, it takes time for any business to break even.
This is when your revenues will be limited, your balance sheet more likely to stay in the red. So, a careful evaluation of your finances is critical to see that you have a safety net at this period for your other expenses. Your research should involve estimated revenues, losses and payments like franchisee and royalty fee. All this must be considered when evaluating the costs and risks involved in setting up a psychiatry Pharma franchise Delhi.