Wednesday 8 August 2007

Why client-based franchises are better than retail-based franchises

Yay!Recently I found out that the way to go is to buy client-based franchise, rather than retail franchise, for several reasons:
1. Client-based are usually need-based. Yes, there are high-seasons and low-seasons in a year, but I believe they are not as severe as retail biz.
2. Client-based biz is not impulsive; you want it because you need it. Therefore, client-based biz is more logical in apporach than retail biz.
3. Yes, you have to bust your ass to persuade clients to use your service, while in retail biz you are more in a waiting-game mode than actively seek clients mode... but at least you see results - because, sometimes, the more you bust your ass in retail biz, the more you will be ass-kicked by potential customers. Trust me! I've been there...
4. The most important reason: in current political and economical conditions of Indonesia, regardless of what experts said about the positive economy outlook of Indonesia, retail biz (including F & Bs, electronics and apparels) will always be a victim. Many retail bizzes was, are, and will be killed on-site, not because they sucks, but simply because political and economical strains will result in less customer buy their products. In retail biz, less customer mean R.I.P., A.S.A.P. Got it? no sales, no cash inflow. No cash inflow, R.I.P.

Anyway, it's just my opinion with no textbook-backed theories. Any comments?

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