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Presented by
Samarth Rao
Kidopia Ventures Pvt. Ltd.
(http://kidsconcepts.in)
Choosing the right Business Model could decide
your chances of Success or Failure too.
Choosing the right model helps make the
business success a little simpler and less difficult
So… which then is the better business model!!
2www.kidsconcepts.in
3www.kidsconcepts.in
In a Franchisee Option,
the Concept is already
existing & proven in the
marketplace.
In a Traditional
Business, one needs to
do trial and error –
should have or develop
an expertise in each &
everything
Traditional Biz
4www.kidsconcepts.in
Tried & tested systems
and processes already in
place and running
All systems needs to be
newly created and
processes designed
Traditional Biz
5www.kidsconcepts.in
Support would be
available on going from
the Company /
Franchisor
Everything has to be
managed and learnt by
self. No external support
at roadblocks
Traditional Biz
6www.kidsconcepts.in
All the marketing
designs, collateral will be
provided by the
company. Tested
already. Just have to use
them
All designs need to be
newly designed and
tested until it works
effectively. Also
expensive as many
versions need to be tried
Traditional Biz
7www.kidsconcepts.in
Can start the business
operations immediately.
Needs lots of time to
initially set up with lot of
trials and coordinate for
everything from materials
to logistics to finance to
recruitment & more.
Traditional Biz
8www.kidsconcepts.in
Risk is mitigated with
proven & working
systems in multiple
locations already.
Risk is relatively higher
as no part of the
business has been time
tested. Everything has to
be newly tried on
assumptions and beliefs.
Traditional Biz
9www.kidsconcepts.in
The Franchisor would
provide regular Updates
and also focus on regular
R & D and innovation for
new upgrades.
Everything needs to be
handled by self. No
other person or
company would help
with upgrades or
updates
Traditional Biz
10www.kidsconcepts.in
Franchisee is provided
complete hand-holding
in all these by the
Franchisor
One needs to completely
device their own plans
and discover marketing
approaches or get
trained separately
Traditional Biz
11www.kidsconcepts.in
Focused, planned &
clearly aware of the
initial and recurring
investment as the same
is already tried
elsewhere.
No clear idea. Appears
less initially, but can be
much higher as there are
lots of trials to be made
and new vendors to
associate with less
volume
Traditional Biz
12www.kidsconcepts.in
Expert opinion, feedback
& testimonials shared
from existing set of
franchisees
No way to gather any
feedback or wisdom
from others experience
Traditional Biz
13www.kidsconcepts.in
All franchisees can
benefit from these
processes, trademarks,
IP and brand value
provided by the
franchisor
As it would be an
independent new entity,
brand recognition would
take few years along
with confirming to
Processes, trademarks,
IP etc.
Traditional Biz
14www.kidsconcepts.in
Business Systems and
Processes already being
proven, one needs to
focus on personal efforts
and following the system
only. Existing, working
model enhances chances
of success.
Unforeseen, unanticipated,
new challenges at every
step. Can get into a roller-
coaster ride, hence
affecting productivity and
bottom-line. Statistics
prove that more than 95%
of new businesses fail in
the first couple of years.
Traditional Biz
Primary source for this slide share presentation:
http://kidsconcepts.in/what-is-the-difference-between-a-
franchise-and-traditional-business/
Trends in the $24 Billion Indian franchise market:
http://www.franchiseindia.com/articles/Research/Latest-
Trends/Franchise-trends-that-entrepreneurs-can-t-miss-
in-2015-724/
KPMG and FAI report on Franchising industry in India:
http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesP
ublications/Documents/Collaborating_for_Growth.pdf
15www.kidsconcepts.in

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Comparing the Franchise versus Traditional Business Models

  • 1. Presented by Samarth Rao Kidopia Ventures Pvt. Ltd. (http://kidsconcepts.in)
  • 2. Choosing the right Business Model could decide your chances of Success or Failure too. Choosing the right model helps make the business success a little simpler and less difficult So… which then is the better business model!! 2www.kidsconcepts.in
  • 3. 3www.kidsconcepts.in In a Franchisee Option, the Concept is already existing & proven in the marketplace. In a Traditional Business, one needs to do trial and error – should have or develop an expertise in each & everything Traditional Biz
  • 4. 4www.kidsconcepts.in Tried & tested systems and processes already in place and running All systems needs to be newly created and processes designed Traditional Biz
  • 5. 5www.kidsconcepts.in Support would be available on going from the Company / Franchisor Everything has to be managed and learnt by self. No external support at roadblocks Traditional Biz
  • 6. 6www.kidsconcepts.in All the marketing designs, collateral will be provided by the company. Tested already. Just have to use them All designs need to be newly designed and tested until it works effectively. Also expensive as many versions need to be tried Traditional Biz
  • 7. 7www.kidsconcepts.in Can start the business operations immediately. Needs lots of time to initially set up with lot of trials and coordinate for everything from materials to logistics to finance to recruitment & more. Traditional Biz
  • 8. 8www.kidsconcepts.in Risk is mitigated with proven & working systems in multiple locations already. Risk is relatively higher as no part of the business has been time tested. Everything has to be newly tried on assumptions and beliefs. Traditional Biz
  • 9. 9www.kidsconcepts.in The Franchisor would provide regular Updates and also focus on regular R & D and innovation for new upgrades. Everything needs to be handled by self. No other person or company would help with upgrades or updates Traditional Biz
  • 10. 10www.kidsconcepts.in Franchisee is provided complete hand-holding in all these by the Franchisor One needs to completely device their own plans and discover marketing approaches or get trained separately Traditional Biz
  • 11. 11www.kidsconcepts.in Focused, planned & clearly aware of the initial and recurring investment as the same is already tried elsewhere. No clear idea. Appears less initially, but can be much higher as there are lots of trials to be made and new vendors to associate with less volume Traditional Biz
  • 12. 12www.kidsconcepts.in Expert opinion, feedback & testimonials shared from existing set of franchisees No way to gather any feedback or wisdom from others experience Traditional Biz
  • 13. 13www.kidsconcepts.in All franchisees can benefit from these processes, trademarks, IP and brand value provided by the franchisor As it would be an independent new entity, brand recognition would take few years along with confirming to Processes, trademarks, IP etc. Traditional Biz
  • 14. 14www.kidsconcepts.in Business Systems and Processes already being proven, one needs to focus on personal efforts and following the system only. Existing, working model enhances chances of success. Unforeseen, unanticipated, new challenges at every step. Can get into a roller- coaster ride, hence affecting productivity and bottom-line. Statistics prove that more than 95% of new businesses fail in the first couple of years. Traditional Biz
  • 15. Primary source for this slide share presentation: http://kidsconcepts.in/what-is-the-difference-between-a- franchise-and-traditional-business/ Trends in the $24 Billion Indian franchise market: http://www.franchiseindia.com/articles/Research/Latest- Trends/Franchise-trends-that-entrepreneurs-can-t-miss- in-2015-724/ KPMG and FAI report on Franchising industry in India: http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesP ublications/Documents/Collaborating_for_Growth.pdf 15www.kidsconcepts.in