FRANCHISING.PH

Being successful in business has always been about staying ahead of the curve. But when that curve is shifting on an almost daily basis, the one thing that sets top companies apart is their ability to adapt to new ways. As they say, the future belongs to the agile, resilient, and flexible.

The principal benefit, which Franchisors hold out to prospective Franchisees, is the opportunity to run a business which has already proved its capacity to deliver products or services profitably to an identified market.

You cannot sell an idea as a franchise. You must have proven in practice that the idea works and that you can successfully transfer the “know how” to another person operating at “arm’s length” from you.

When Franchising became popular in the Philippines, the RTW retail sector had the biggest share and attracted the most Franchisees. Through the years that shifted in favor of food, probably through the thinking of people that everyone has to eat. By today around 60% of all Franchises are in the Food Sector and the RTW retail sector slid down to a mere 3% and declining further, caused by cheap imports, ukay-ukay and overruns as well as big Clothing brands coming into the Country and teaming up directly with the big existing retailers.

In a study of leaders through succession planning and executive assessments, Jeffrey Cohn and Jay Moran have repeatedly seen seven attributes that are central to a successful leadership. Authors of the book, “Why are We Bad at Picking Good Leaders?” they zeroed in on the basic building blocks of leadership as follows:

Technology is influencing the competitive landscape for businesses of all kinds and to thrive in a competitive landscape, businesses must be willing to adapt and change.

I am writing this article while waiting for my plane bound for Europe. It is a short 4-hour flight but it allows me to reflect on a lot of initiatives related to my role as an advisor to family enterprises based in this part of the globe. Due to the pandemic that has ravaged many economies all over the world during the last two years, my visit, a first in two years, is long overdue and I could not wait to finally re-energize family members in person and tackle important concerns that have been sidelined because of the crisis.