i-tutor.net: Better Education For All

I've come across a franchise (license, I think), than run rampant in ASEAN countries, particularly Indonesia. Why run rampant? This fact: 500 licensees in 1,5 years - in Indonesia alone. But it's only happen in Indonesia. Others seems 'normal'... Indonesia's i-tutor.net is so 'un-normal' that investors from other countries buy the license from i-tutor.net Country Rep. in Indonesia! sicko!

The reason is that Mr. Sofian, the i-tutor.net Indonesia Country Rep. re-develop i-tutor.net original system, in such a way that it accomodates Indonesia's limited Internet access. For info, i-tutor.net original system is for students to access study materials through the Internet. In Indonesia, i-tutor.net uses offline software that looks and feels like the online version. Genius!

From educational perspective, i-tutor.net introduce cinema edutainment concept - students learn in an environment that uses audio-visual learning system through a 'movie' projected to screens - just like watching movie in cinemas. In this way, students learn 5 times more effective than conventional learning methods (proven) in an intergrated environment that promotes affective, cognitive, psycho-motoric, and EQ of the students. Moreover, i-tutor.net is relatively low in tuition fee - great value for money, considering the i-tutor.net education is endorsed by e-ASEAN Initiatives, developed by 60 professors (including 10 child psychologists), and developed according to Singapore curriculum standard.

From biz perspective, i-tutor.net is, perhaps, only one of few franchise (license) that offer investment model - with license value that tends to grow, with license term that is for a life-time and transferable (this will end soon, so join i-tutor.net now!), and with multiple source of income - not only from the increased value of the license and from the operating profit of the courses, but also from sponsorship program - through referring new licensees, promoting i-tutor.net system to education institutions and local gov't office, and through becoming a distributor - managing licensees and retaining a percentage of the managed licensees license fee, royalty fee, and merchadise sales. Sounds like a networking system? It IS a networking system, but not a pyramid system (not all can become a distributor - distributorship is only assigned to one entity per region) - so it's legit.

Interested? Please contact me for more information. Cheers!

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

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?

JSI Luarrrbiasa Pro Franchise

JSI Luarrrbiasa Pro Franchise, in my opinion, is one of the biz to watch in Indonesia. It's a software, accounting and registered tax consultant franchise. It reminds me with Jackson Hewitt, US' leading tax preparation service franchise.

They do tax consulting, financial report preparation and consulting, IT & Accounting sytem developer, work outsourcing and accounting software developer & retailer. In the near future, they will complement their line of services with law & legal services. Kewl stuff!

At the time this post is written, in one year of franchising, they already have 11 offices in Jakarta and Tangerang area, which 5 of them are own units. In regard to experience in the business, the founders, Jan, Jemmy, and Irwan - all former college mates in Universitas Tarumanagara, Jakarta are officialy started the consulting biz in 1994. I have met them not long ago, and I think they are the right people in the right business - "bad ass", ambitious, experienced, friendly and teamwork-infested way of thinking - something that you and I should look for in frachisor's character set.

Regarding investment, there are 3 type of franchising:
1. Software sales & implementation only (franchise fee: Rp. 30 million)
2. Full accounting, tax & IT service (franchise fee: Rp. 350 milion)
3. Full service plus training center (franchise fee: Rp. 450 million)

For total investment, add Rp. 50-70 million in equipments, renovation and fixtures (excl. office rent fees, if any).

I'm thinking to buy one, but I don't know if they consider me to be the right candidate in their long waiting list. Let's wait and see. I'll get back at you for updates.

Multiplus Franchise

I currently own 2 stores of one of Indonesia's leading local franchises, Multiplus Business Center located in Lippo Karawaci Utara and Cimone, Tangerang, Banten Province. Multiplus Business Center is a one-stop shop solution for every business needs, such as shipping and package delivery, digital printing, copying, faxing, Internet access, and other business supports.

To be honest with you, this franchise is good, in term of brand value (which is one single important factor to consider why you pay hundreds millions of rupiah as franchise fee). In one decade, Multiplus Business Center has grow to 100 store nationwide. Big franchise. But also big problems ahead.

Yes, Multiplus is built largely by its franchisees. Yet, lots of its franchisees simply don't understand how to use the brand, and build the brand value TOGETHER. I mean, should you own a store targeted to middle-upper scale market, you wouldn't want to sell your products and services like you open a blackmarket store! Sad, but true! You pay for the brand name humongous amount of franchise fee, but you throw it to the mud, kick it and burry it under the soil! IT SUCKS!

What we suffer as a franchisee? the loss of brand image and value, customers won't trust us as much as few years ago, and the loss of confidence of other franchisees that are willing to bust their ass to make their store survive. Not prosper? The fact is, most can't be described as "prosperous." Like my store in Lippo Karawaci Utara and Cimone, we survive on a tight net profit margin, which I believe is not because of bad business - it's due to those above who sucks! What they did (and still do) crush my store's image also - afterall, we are a franchise. Like I said, we build the brand value T-O-G-E-T-H-E-R.

Anyhow, I plan to sell the business. It's not an easy business to be in, considering its a franchise. My company has financial difficulties due to my mistake in valuing retail service business. The stores I have are in average-to-good shapes, but I can't sell them high in value due to net profit:investment ratio.

One word of wisdom: Don't buy a retail service business on 100% loan money!
On paper it looks good, but in reality, you need extra work (and money) to
grow the business. Just like others in retail industry.

In conclusion, this franchise will remain one of the best in Indonesia. It has won several local and international awards, and considered one of the better in franchise system in Indonesia. My suggestion: buy this franchise if you want minimal involvement in stores and have all-cash investment to buy a store. DON'T use bank financing, at least in the first 2 years of ops - or else, you will choke your biz, and believe me, you'll kill your biz more sooner than latter!

Hear ye, hear ye. Asep Onde speaks! :D