All about Micro-franchising.

Micro-franchising 

Have you ever heard of this before? Probably? Maybe? Yes? Kind of? Nope? Well, I am going to break it down for you in this article. Everything you have a question about I am going to answer it. If you have more questions about this topic please leave your question in the comments and I’ll respond to your question as well. 

Sooo lets start! 

How did I implement and learn this model?

In 2018 and 2019 I had the opportunity of going to the Republic of Congo. A country that ranks 179th out of 190th worst place to do business in the world. My team and I went with 3 different business models; which all produced sustainability and centers around solar panels. When we arrived and saw a struggling phone charging business we knew we had to help. The owner tried to franchise but with the cost of gas and the power grid being so sporadic he wasn’t able to succeed. We set the business models aside and went to work on how to make this struggling business a success. Working side by side with the Congolese we decided that Micro-Franchising was the best option. We rebuilt the kiosk they were using to charge phones into something more economically friendly and also we implemented a new business model. This model paid back the initial cost of the kiosk and then built another one in a 6 month time. This means twice a year the profits would turn over. Expanding and bringing more people out of poverty. The franchisee went from an average of $2.00 a day to $10.00-$12.00 per day. This model works! It just takes more effort than just throwing money at the problem or donating old shoes. It takes business knowledge and actual effort. 

What is it? 

The easiest way to explain it is like a business in a box. What do you need to have a successful business? 

• Successful Marketing plan
• Finance structure
• Business model
• Human Resources and Training processes
• Sustainability Model

This is the same thing that you need in a Micro-Franchise. A Micro-Franchise is a franchise that is established from a small loan along with the resources, knowledge, and processes to almost always guarantee success. 

Why is it needed? 

About 3 billion people live on less than $3.00 a day. In the developing world they are in need of businesses that will thrive. Businesses that will have an impact on the economy. All over the world people are just donating shoes and throwing money at poverty attempting to fix the problem. We have seen in reality this hurts the economy, causing more poverty and more businesses in those developing countries to go out of business. 

What is the difference between Micro-financing and Micro-Franchising?

Micro-finance is a category of financial services targeted at individuals and small businesses who lack access to conventional banking and related services that include microcredit, savings and checking accounts, and payment systems.

Micro-franchise is a business model that has been tested and is easily replicable. It applies all the elements of a traditional franchise and a small business. 

Key to making this work.

While I was able to perform this business model in Congo. I learned that the only true way to make this successful was a couple things. 1. To have a contact partner that you fully trust in that country of where you want to do business. You need to have someone that is on the same course as you. Someone that has the same vigor and intensity you do for being successful. 2. You have to form a Master Franchise, an entity to control the processes and objectives of the business; keeping everything cohesive and unified. This will enable you to continually train the franchisees, teach them new processes, and build up the communities in which they reside.

These are just 3 of many questions you can ask about micro-franchising. 

If you have any other questions about this please message me or leave it in the comments.